Loan Eligibility Calculator — Check Your Borrowing Capacity

Loan Eligibility Calculator

Calculate how much you can borrow for your next loan. Determine your borrowing capacity based on income, expenses, credit score, and loan type.

Step 1: Loan Details

4.5%

Understanding Loan Eligibility

Lenders assess your debt-to-income ratio, credit score, and financial stability. Typically, monthly loan payments shouldn’t exceed 35-40% of your gross monthly income.

Step 2: Financial Information

700

About Credit Scores

Credit scores range from 300-850. Scores above 700 are considered good, while above 800 are excellent. Higher scores typically qualify for better interest rates.

Loan Eligibility Results

Summary
Loan Comparison
Breakdown

Maximum Loan You Qualify For

£275,000
Based on £60,000 annual income
Monthly Payment
£1,450
Debt-to-Income Ratio
32%
Interest Rate
4.5%
Loan Type
Mortgage

Loan Type Comparison

Loan Type Typical Term Interest Range Max Loan-to-Income

Affordability Breakdown

Eligibility Calculation Formula

Max Loan = (Annual Income × Loan-to-Income Ratio) ÷ (Interest Factor × Term Factor)

Loan-to-income ratio varies by loan type and credit score. Interest factor accounts for the interest rate over the loan term. Term factor adjusts for repayment period.

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