Mortgage Affordability

Whether you're a first-time buyer, home mover, landlord or looking to remortgage, understanding what you can realistically afford is an important first step before house-hunting or comparing products.

What affects your affordability?

• Your annual income, including any bonuses or additional earnings
• Whether you're applying alone or with a joint applicant
• Your existing debts and monthly outgoings
• Your credit history
• The size of your deposit
• For landlords, the expected rental income of the property

Common scenarios

First-time buyers

As a first-time buyer, lenders will look at your income and outgoings, along with your deposit. Remember, first-time buyers currently pay no stamp duty up to £300,000 on properties up to £500,000.

Home movers

If you already own a property, affordability will also take into account any equity you're bringing forward from your current home.

Buy-to-let

For buy-to-let mortgages, lenders typically focus on whether the expected rental income covers a set percentage of the mortgage payment.

Remortgaging

If you're remortgaging, affordability is reassessed based on your current circumstances, even if you're staying with the same lender.

Get an estimate of what you could borrow

In the meantime, take a look at our calculators hub for tools you can use today.

Next steps

Checking your credit file (£14.99 per month after the free 30-day trial; cancel at any time) can also help you understand your position before applying.

A broker can give you a more accurate picture based on a comprehensive panel of 90+ lenders. Your initial consultation is free; depending on your circumstances a broker fee may apply, typically £199 to £299, capped at 1% of the loan amount or £650, confirmed before you apply.

Get in touch to talk through your affordability with an adviser.