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How Much Can I Borrow for a Mortgage as a First-Time Buyer?

Understand how lenders estimate mortgage affordability, which income and outgoings matter, and why your comfortable budget is important.

Checked 1 June 20267 min read

Quick answer

There is no single borrowing figure that applies to every first-time buyer. Lenders look at your income, regular spending, debts, employment and wider circumstances. MoneyHelper says borrowing is typically capped at around four-and-a-half times annual income, but many people are offered less.

Education, not advice. Use this as a clear starting point, check the linked official sources and speak to an appropriately regulated professional before acting. Read the disclaimer

Jump to an answer

Start with two numbers

Your lender's maximum and your comfortable monthly budget are not the same thing. A lender assesses whether a mortgage appears affordable under its criteria. You still need to decide whether the repayments leave enough room for bills, home maintenance, savings and ordinary life.

Use a mortgage affordability calculator as an early estimate, then speak to a lender or regulated mortgage adviser about your circumstances.

What lenders usually look at

  • Your basic income and other income that the lender is willing to consider.
  • Regular bills, childcare, travel and ordinary spending.
  • Loans, credit cards, car finance, student loan deductions and other commitments.
  • Your employment type, deposit and credit history.
  • Whether repayments could remain manageable if circumstances or interest rates changed.

Build a budget you can live with

Owning a home adds costs beyond the mortgage. Include council tax, utilities, insurance, service charges where relevant, maintenance and a buffer for unexpected repairs.

A lower purchase price can leave you more room to enjoy the home after you move in. Treat the maximum figure as a ceiling to examine, not a target to chase.

Common questions

Can I borrow four-and-a-half times my salary?

MoneyHelper says borrowing is typically capped at four-and-a-half times annual income, but this is not guaranteed. Lenders use their own criteria and many people are offered less.

Does a bigger deposit let me borrow more?

A larger deposit can reduce your loan-to-value ratio and may improve the deals available, but lenders will still assess whether the mortgage is affordable for you.

Official sources

Use these sources to check the latest rules and read more detail:

Education only: Solvado does not provide mortgage, financial, tax, legal or insurance advice. Any tool results are general estimates, not recommendations, offers or eligibility decisions. Rules, rates and criteria can change. Check official sources and speak to an appropriately regulated professional before making decisions.

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