How Much Can You Borrow, and What Most People Get Wrong Before They Even Start

Most people walk into this backwards.

They go on Rightmove first.
Fall in love with a property.
Then try to figure out what they can borrow.

That’s how you waste time and set yourself up for disappointment.

Let’s get it the right way round.

How much can you actually borrow?

You’ll hear this everywhere.
Four to four and a half times your income.

That’s the headline number.
It’s not the full story.

Lenders don’t just look at what you earn.
They look at how you live.

Credit history matters.
Credit cards, loans, and car finance all matter.
Childcare, bills, and subscriptions all matter.

I’ve seen people earning good money get told no.
And others, on average, get more than they expected.

So don’t hang everything on a rough multiple.

Get a mortgage in principle early.
It gives you a realistic range and shows agents you’re not just browsing.

Deposits. This is where people trip up

Yes, you can buy with 5 per cent. You can even buy with limited options with 2% or, in fact 100%

On paper, that gets you through the door.

In reality, it can box you in.

Smaller deposit usually means higher rates.
Higher rates mean higher monthly payments.
And that’s where it starts to hurt.

If you can push to 10 or 15 per cent, everything opens up.

Better rates.
More choice.
Less pressure on your monthly budget.

I’ve seen people wait years trying to hit 25 per cent while paying rent the whole time.

Sometimes waiting costs more than moving, and while you’re waiting, prices creep up!

Fixed or variable. Don’t overcomplicate it

A fixed rate keeps your payments steady.

You know what’s going out each month.
You can plan your life around it.

A variable rate moves.

Sounds good when rates drop.
Doesn’t feel great when they rise.

Most people think they’re fine with that.
Until their payment jumps, and suddenly it’s not so comfortable.

So the question isn’t which deal looks cheapest today.

It’s how much movement you can actually handle without it stressing you out.

Government schemes. Useful but not a shortcut

There’s help out there, but it’s not a free pass.

The Mortgage Guarantee Scheme helps if your deposit is small.
Shared Ownership means you part-buy and part-rent.
A Lifetime ISA gives you a boost to your savings.

They all have rules.
They all have limits.

Some work well depending on your situation.
Some create more complexity than people expect.

You need to look at what fits, not just what’s available.

The mistake most buyers don’t realise they’re making

They focus on the wrong thing first.

It’s not the house.
It’s not the rate.
It’s not even the deposit on its own.

It’s the full picture.

What you can borrow.
What you’re comfortable paying each month.
How flexible do you need things to be later?

Get that right and everything else becomes easier.

Get it wrong, and you spend months going round in circles.

Final thought

Buying a property isn’t just about getting approved.

It’s about getting it right for your life, not just today but a few years down the line.

If a small change in rates or payments would throw everything off, that’s something to look at before you commit.

Want to know more. Speak to an adviser like us today.

Your home or property may be repossessed if repayments on a mortgage or loan secured on it are not made.

This is general information only and based on current UK lending criteria, which can change at any time.