Loan Affordability Checker (UK)
Estimate how much you could borrow – brought to you by LoanChecker.co.uk
Estimate how much you could borrow – brought to you by LoanChecker.co.uk
LoanChecker.co.uk helps you estimate how much you can borrow based on your income, expenses, and loan terms. This calculator is for guidance only, and actual offers may vary depending on lenders’ criteria.
They look at your income, living expenses, existing credit commitments, and your credit history.
Generally, lenders prefer debt-to-income ratios below 40%, but this varies by lender.
Reduce expenses, pay off existing debts, and maintain a good credit score.
No, this tool is for guidance only. Loan approvals depend on the lender’s criteria and checks.
This calculator is designed for personal loans. Mortgage lenders use stricter affordability checks, but the principles are similar.
If you have no other credit commitments, your disposable income is higher, which may allow you to borrow more.
Yes. While this calculator doesn’t check your score, lenders use it to determine risk and interest rates.
Use the rate you’ve been quoted by a lender or a typical personal loan APR (5–15%).
No, LoanChecker.co.uk does not store or share your information. It’s a private calculation.
The calculator will show that you have no disposable income available for a loan, meaning borrowing is not advisable.
It provides an estimate. Actual lending decisions may differ based on detailed assessments by banks or lenders.
Yes. Increasing the term reduces monthly payments but increases the total interest paid.
Yes, the calculator is completely free to use and does not require sign-up or personal details.
Welcome to LoanChecker.co.uk, your home for clear, simple, and trustworthy information on personal finance. Our loan affordability calculator UK is designed to help you estimate how much you may be able to borrow, what your monthly repayments might look like, and how lenders typically assess affordability. In this extended guide, we’ll cover everything you need to know about loan affordability in the UK, from how lenders calculate affordability to practical steps you can take to improve your chances of getting approved for the loan you need.
Taking out a loan can be a smart way to manage major expenses, consolidate debt, or invest in something important like education, a car, or home improvements. But borrowing without knowing your affordability can quickly lead to financial stress. Understanding how much you can realistically borrow and repay each month ensures that your finances remain manageable and that you avoid future problems such as missed payments, high fees, or long-term debt.
The LoanChecker.co.uk affordability calculator asks you to input your monthly income, monthly expenses, the loan term (in years), and the interest rate. Using this information, it provides three key outputs:
These figures are for guidance only and are based on general affordability principles. Each lender has its own criteria and may approve, decline, or offer different terms than estimated here.
When you apply for a personal loan in the UK, lenders follow guidelines set by the Financial Conduct Authority (FCA) and their own risk models. They typically review the following:
The debt-to-income ratio (DTI) is one of the most important metrics in lending. It tells lenders how much of your income is already committed to paying off debt. To calculate it yourself:
DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100
For example, if you earn £2,500 per month and spend £750 on existing debt repayments, your DTI is 30%. Lenders see this as relatively safe. If your DTI rises above 50%, you may find it harder to get approved for new credit.
Our affordability calculator is primarily for personal loans, but the principles can apply to other types of borrowing too:
Several factors will determine the loan amount you can realistically access:
Yes, but you may face higher interest rates and lower borrowing limits. Using our calculator helps set realistic expectations.
This depends on your expenses and debts. If your disposable income is £800 per month, lenders may consider loan repayments of £250–£300 as affordable.
No, LoanChecker.co.uk does not run a credit check or store your details.
Personal loans are usually available up to 7 years, though mortgages can run 25–35 years.
Yes, borrowing only what you need reduces debt stress and lowers total interest costs.
Extend the loan term or improve your credit score to qualify for a lower interest rate.
No. Each lender has its own models and may weigh factors like expenses and credit history differently.
Typical personal loan rates range from 5% APR for excellent credit up to 30% APR for subprime borrowers.
No, this tool is for personal borrowing. Business loan affordability is based on company finances.
Because affordability is based on safe guidelines. Lenders may allow more or less depending on your individual profile.
While loans can be helpful, it’s important to borrow responsibly. Consider:
Unlike many finance websites, LoanChecker.co.uk is independent, free to use, and focuses solely on giving you clarity. We don’t collect personal data or sell leads to lenders. Our mission is simple: to give UK borrowers a straightforward way to understand their borrowing capacity without pressure or confusion.
Understanding loan affordability is essential before applying for credit. With the Loan Affordability Calculator UK at LoanChecker.co.uk, you can explore your borrowing power, estimate repayments, and make informed financial decisions. Take a few minutes to try the calculator today and start your loan journey with confidence.