Published on Jan 2, 2026 - By Lenderhive Team
What Determines How Much I Can Borrow — And Do All Lenders Use the Same Criteria?
* Your home may be repossessed if you don't keep up repayments on your mortgage.
One of the biggest questions when buying or remortgaging a home is: "How much can I actually borrow?" Most people assume the answer will be broadly similar across lenders — but in reality, two banks can give you borrowing limits that differ by tens of thousands of pounds. That's because each lender uses its own affordability model, its own interpretation of income, and in many cases, its own strategy for the types of customers it wants to attract.
Understanding these differences can help you unlock borrowing potential you didn't even realise you had.
How Lenders Assess Income — And Why It Matters
Income isn't just about what you earn — it's how the lender interprets it.
For Employed Borrowers
Most lenders start with your basic salary, but there can be huge differences in how they treat additional income. Some lenders will happily include 100% of your regular overtime, bonuses or commission, while others may only accept a fraction of it. If you receive shift allowances, work variable hours, or have recently started a new job, certain lenders will view your situation more favourably than others.
For Self-Employed Borrowers
The variation is even greater. Some lenders want three years of accounts and average them out, while others will work off just the latest year — which can significantly increase your borrowing if your income has grown. Limited company directors may be assessed on dividends alone with one lender, or salary plus net profit with another. Contractors may even be assessed based on their day rate, giving them a higher recognised income than their tax returns show.
The message is simple: the lender you approach can drastically alter how much you're able to borrow.
Financial Commitments and Lifestyle Costs
Your monthly commitments — such as loans, credit cards, childcare costs or car finance — also play a major role in affordability. Some lenders take a very cautious approach, while others are more flexible when your overall financial profile is strong.
On top of this, lenders now assess your typical household spending. While these assessments follow broad guidelines, each lender calculates this differently. For some borrowers, that means one lender might drastically reduce borrowing capacity, while another takes a more balanced view.
Stress Testing and Interest Rate Buffers
Lenders must check that you could still afford your mortgage if interest rates rose. Some apply strict "stress rates," which can reduce borrowing significantly. Others take a more moderate approach, which can make a meaningful difference to the amount they're willing to lend.
Credit History and Lender Preferences
A strong credit profile certainly helps, but even if you've had historic issues, not all lenders will treat them the same. Some are very credit-score driven; others look more at the overall story and your current stability.
Just as importantly, lenders often target different types of customers:
First-Time Buyers
Some focus on first-time buyers and offer higher income multiples to help them onto the ladder.
Green Mortgages
Others promote green mortgages for energy-efficient homes, which can come with better rates, cashback or even enhanced borrowing because the running costs of the home are lower.
Professional Borrowers
Professional borrowers — such as teachers, doctors or accountants — may also be able to borrow more with lenders who value income stability in those fields.
Specialist Lenders
Specialist lenders step in for more complex situations: self-employed clients with just one year of trading, contractors, people with multiple income streams, or those buying a more unusual property.
How Lenderhive Helps Unlock Your True Borrowing Potential
Because the difference between lenders can be so large, starting with just one bank may limit what you can achieve. Lenderhive compares affordability across a wide range of lenders — from major high-street names to specialist providers and green mortgage champions — giving you a realistic view of what's possible.
Whether you want a quick estimate or a detailed assessment, Lenderhive offers:
A Fast Affordability Calculator
Get a quick estimate of your borrowing capacity in minutes, helping you understand what might be possible.
A Personalised Quick Quote
Receive tailored mortgage options based on your specific circumstances, comparing multiple lenders at once.
A Tailored Advice Journey
Work with an adviser who reviews your full circumstances and helps you find the lender that will offer you the most favourable terms.
If you want to know what you could really borrow — not just what one lender says — start your quick quote with Lenderhive today.