If you’re buying your first home, one of the first big questions is: “How much can I actually borrow?” It’s exciting to start house-hunting, but knowing your budget early on makes everything smoother — and helps avoid falling in love with a home that’s just out of reach.
What Lenders Look At
When you apply for a mortgage, lenders consider a few key things:
- Your income: They’ll look at your basic salary and, in some cases, bonuses or overtime.
- Your outgoings: Things like credit cards, loans, childcare, and car finance all affect affordability.
- Your credit score: This helps lenders see how well you’ve managed credit in the past.
- Most lenders will lend around 4 to 4.5 times your annual income, though this varies depending on your circumstances.
Top Tips to Boost Affordability
Reduce existing debt — Lower card balances and loans can make a big difference.
Save a healthy deposit — The bigger your deposit, the better your mortgage options.
Consider joint applications — Buying with a partner can increase what you can borrow (if both incomes are stable).
Ready to Find Out Your Budget?
Before you start booking viewings, it’s worth getting an Agreement in Principle (AIP). It’s quick to do and gives you a realistic idea of what you can borrow.
If you’d like some help crunching the numbers, get in touch — I’ll guide you through it and help you understand what’s truly affordable for you.