£234,820
United Kingdom · Affordability
How much house before owner cost is 28% of gross income?
OwnerCost’s own 28% planning ceiling, applied to this market’s ownership costs. Below: how lenders here actually assess affordability, and what this estimate leaves out.
Example with the default inputs. Change any field to recalculate.
About £234,820
At this price, monthly owner cost is 28% of gross income in the United Kingdom. 4.5× your income is £279,000 of borrowing. Loans at or above 4.5× income count as high loan-to-income lending under the Bank of England framework; this is not an individual borrowing cap.
£35,223
£1,447
How lenders in the United Kingdom assess affordability
Before lending, a mortgage lender must check that the loan is affordable for you. It must allow for likely interest-rate rises over at least five years — unless the rate is fixed for five years or more, or for the whole mortgage if it runs for less than five years, in which case no stress test is required.
Source: FCA Handbook — MCOB 11.6 Responsible lending; FCA — Interest rate stress test rule (MCOB 11.6.18R) (updated 15 Dec 2025)
Loans of 4.5 times income or more count as high loan-to-income lending. The Bank of England framework limits the share of new mortgage lending made at these ratios; it is not a cap on what any one borrower can be offered. How the limit is applied has been under review since 2025.
Source: Bank of England — CP6/26 High loan to income lending (April 2026); Bank of England — PRA review of the LTI flow limit (July 2025)
OwnerCost's 28% of gross income is its own planning ceiling for monthly owner cost. It is not a UK lender or regulatory rule.
Checked against these sources on 24 September 2026.
What this estimate includes
- Principal and interest at the rate you enter
- Home insurance
- Service charge
What it does not include
- Your other debts — lenders count them; this estimate does not
- Lender stress or serviceability tests — the estimate uses the rate you enter, not a stressed rate
- Lender approval rules, credit history and deposit requirements
- Purchase taxes and fees (see the Stamp page)
- Council tax
How we calculate
Highest price at which the repayment, insurance and service charge equal 28% of gross monthly income (OwnerCost's planning ceiling). The 4.5× income figure marks where high loan-to-income lending starts; it is not part of this calculation. Monthly rate = quoted nominal annual rate ÷ 12 (enter the interest rate, not the APRC). Payment = P·i / (1 − (1 + i)^−n) over n months.
Rules checked against these sources on 24–25 September 2026.