How Much Can First-Time Buyers Borrow?
One of the most common questions first-time buyers ask is how much they can borrow.
The answer depends on several factors, including your income, financial commitments, deposit size and overall affordability.
Most lenders will offer between 4 and 4.5 times your annual income, although this can vary depending on your circumstances.
What Affects Your Borrowing Amount?
Lenders look at more than just your salary.
They also consider:
- Monthly outgoings
- Existing debts or loans
- Credit history
- Employment type (employed or self-employed)
- Number of applicants
This is known as an affordability assessment.
How Much Deposit Do You Need?
In most cases, first-time buyers need a minimum deposit of 5%.
However, a larger deposit can:
- Increase your borrowing options
- Give access to better interest rates
- Reduce your monthly repayments
Deposits can come from savings or gifted funds from family members.
What Is an Agreement in Principle?
An Agreement in Principle (AIP) is a lender’s initial indication of how much they may be willing to lend you.
It is not a formal mortgage offer, but it can:
- Show estate agents you are a serious buyer
- Help you understand your budget
- Strengthen your position when making an offer
What Costs Should You Budget For?
Buying your first home involves more than just the deposit.
You should also consider:
- Solicitor fees
- Valuation or survey costs
- Stamp duty (if applicable)
- Moving costs
Planning ahead helps avoid surprises later in the process.
Getting Support as a First-Time Buyer
The mortgage process can feel overwhelming if it’s your first time.
Getting advice early can help you:
- Understand your borrowing potential
- Avoid applying to the wrong lender
- Move forward with confidence
👉 You can explore more in our First-Time Buyer Mortgage Advice hub.