Are property taxes and insurance included?

This estimate assumes the whole housing cap goes to principal and interest. In reality, taxes, insurance and any HOA fees eat into that budget, so treat the price as an upper bound.

Why is the down payment separate?

The DTI rules govern the monthly loan payment, which sets the maximum loan. Your down payment is added on top to arrive at the home price you can afford.

What if I have no monthly debts?

Enter 0 — the back-end cap then equals 36% of monthly income and often the front-end 28% becomes the binding constraint.

House Affordability Calculator

See the home price you could realistically afford based on income and existing debts.

Your details

Annual gross income

Monthly debt payments

Down payment

Mortgage interest rate

Mortgage term (years)

Estimated affordable home price

£350,993

Limited by the front-end DTI cap

Maximum loan

£325,993

Max monthly payment

£1,750

How this is calculated

This uses the classic 28/36 rule. Housing costs (front-end DTI) shouldn't exceed 28% of gross monthly income, and total debt payments (back-end DTI) shouldn't exceed 36%.

We take the smaller of those two caps as your maximum monthly housing payment, then back-solve the loan amount from your rate and term. Adding your down payment gives an estimated affordable home price.

Real lender criteria vary — some allow higher ratios with a strong deposit or high income, others are stricter. This is a planning estimate, not a formal decision in principle.