Can I actually afford to buy a house? It is one of the most common questions first-time buyers ask, and one of the hardest to answer on your own.
The internet offers calculators, friends and family share their experiences, and every source seems to give a different answer – maybe because it’s personal. It can feel like you are stuck between worrying about overcommitting financially and the frustration of watching house prices tick upward whilst you wait for the right moment.
The fact is that most first-time buyers can afford to buy sooner than they think. The challenge is not usually affordability itself; it is understanding how affordability actually works and what numbers really matter.
Let us break this down in a way that makes sense.
The Three Numbers That Matter
When people ask, ‘can I afford it?’ they usually mean one of three different things, and it is important to separate them:
- What you can comfortably pay each month
This is the most important number, and ironically, the one people often skip over in their rush to see what lenders will approve.
Your comfortable monthly payment is not just your current rent or what you think you could stretch to. It needs to include:
- A buffer for interest rate rises (you will ‘remortgage’ every two to five years, and rates change)
- Money for home maintenance and repairs (boilers break, roofs leak, and everything needs a bit of refresh from time to time …)
- Life insurance and income protection (to ensure you keep your home if you cannot work)
- Room for life changes (career breaks, growing families, unexpected expenses, or an obsession with that new restaurant on the corner!)
A good rule of thumb: if paying your mortgage would mean you are living month to month with no cushion, you are stretching too far. Home ownership should bring some stability, not create financial anxiety.
- What lenders will let you borrow
This is where the famous ‘income multiples’ come in. Traditionally, since 2008, lenders would cap mortgages at 4.5 times your gross annual income. If you earned £40,000, you could borrow up to £180,000.
But the market has evolved. Nearly all first-time buyers we work with are eligible for higher income multiples:
- 5x income is now common for first-time buyers
- 6x income is available from several high street lenders
- Some lenders go even higher in specific circumstances
That same £40,000 salary could now potentially support a £240,000 mortgage rather than £180,000. That is a huge difference in buying power.
But lenders do not just look at your income. They also take a stab at what they think is affordable for you, and so factor in:
- Your existing financial commitments (credit cards, loans, car finance)
- Your credit history (clean history = lower risk = access to better deals or smaller deposits)
- Other commitments like pension contributions and childcare costs
- Service charges (if you are buying a flat)
- Your deposit size (bigger deposit = lower risk = potentially more lending)
So, whilst the headline might be ‘6x income’, your actual maximum could be lower depending on your full financial picture.
- Your deposit
Even if you can afford the monthly payments and a lender would approve your income multiple, you still need a deposit. Or do you?
Deposits are now much more flexible than most people realise:
- £0 deposits are possible in specific circumstances (strong rental history, family guarantees, developer contributions)
- 1-3%, or £5,000-£10,000 are available for five-year fixed deals from a few lenders, including some you’ve probably heard of.
- 5% deposits open up access to over 50 lenders
- Gifted deposits from family (and sometimes friends) are widely accepted
A smaller deposit means slightly higher interest rates (typically 0.3-0.5% more), but that might be better than waiting years to save more whilst paying rent.
Putting It All Together
So, can you afford to buy right now? Here is how to think about it:
Start with your comfortable monthly budget. Be honest about what you can sustain long-term, including buffers for the unexpected.
Then check what that budget translates to in borrowing power. A £1,200 per month payment (at a current safe average rate of around 5%) would support roughly a £220,000 mortgage over 30 years. Or £250,000 over 40 years.
Add your deposit. If you have got £15,000 saved (plus a few thousand extra for costs & fees), that £220,000 mortgage gives you a buying budget of £235,000. Not enough in your area? That’s when the tough conversations happen – can family help? Would another area, or smaller property, work? Or would shared ownership, or an affordable home ownership scheme (such as First Homes), make sense for you?
Finally, verify the lender side. Would a lender actually approve that £220,000 on your income? If you earn £40,000 and can access 5.5x lending, that is £220,000. It works. If you earn £35,000, you will likely need to set your sights a bit lower – but a 6x lender would get you close at £210,000.
Why Talking to an Adviser Makes This Easier
Working through these numbers on your own is possible, but it is easy to miss something or make assumptions that do not quite match how lenders actually work.
In a quick conversation, we can:
- Look at your income and circumstances to give you an accurate maximum borrowing figure
- Help you think through a realistic monthly budget that includes all the hidden costs
- Explain your deposit options, including family help or lower-deposit schemes
- Flag any credit issues early so you can fix them before applying
- Give you a clear yes or no answer on whether buying right now makes sense for you
We work as your partner throughout the whole journey, from sorting out your credit months before you apply, to tracking rates from Agreement in Principle to Completion. If a better deal appears whilst you are house hunting, we grab it for you. Our role is to help you make the right decision for your circumstances, not just process an application.
And as first-time buyers with us, you receive £100 to £300 cashback that could get you a few takeaways to fuel your decorating, or some secondhand bargains to help make your new place feel like home. It is not a marketing gimmick; it is our way of making sure being ethical does not mean paying more.
Take the First Step
If you are asking yourself whether you can afford to buy, the best thing you can do is find out for certain. Stop second-guessing and get proper answers based on your actual situation.
Book a free initial chat with us. We will look at your income, your deposit, and your monthly budget, and give you a straight answer about what is possible right now.
Your mortgage should not cost the earth. Which is why we donate £60 to charity for every application, plant a tree in your name, and will help you find a lender that fits your values. Doing the right thing should not cost you more.
Remember, your home may be repossessed if you do not keep up repayments on your mortgage.
