How much can I borrow
When it comes to buying a property, one of the first and most important questions to ask is: how much can I borrow? The answer will depend on your personal financial situation – including your guaranteed income, outgoings, and credit history.
That’s why it makes sense to find out what you can realistically afford before you even start looking at properties. Knowing your budget from the outset helps you focus your search and avoid the disappointment of falling in love with a home that’s simply out of reach.
Most lenders can give you an indication of how much they’re willing to lend before you’ve even found a property. This is called a Decision in Principle (DIP) or Mortgage in Principle. It’s not a formal offer, but it’s a great starting point and can help show sellers and estate agents that you’re a serious buyer. The amount offered will be based on your guaranteed income – that means salary and other stable earnings, rather than bonuses or overtime unless it's regular and provable. You can read more on agreements in principle here.
Why it’s important to know your budget?
House hunting is exciting, but it’s easy to get swept up in the thrill and start browsing properties beyond your price range. Without understanding how much you can borrow, you risk wasting time and energy on homes you can’t afford – and potentially setting yourself up for disappointment.
By speaking with a mortgage adviser early on, you’ll get a clear idea of what’s affordable for you. This allows you to search for properties with confidence and avoid unnecessary stress later in the process.
The costs involved
Buying a home isn’t just about the mortgage – there are several additional costs you’ll need to plan for. Here’s a breakdown of things you need to consider:
Deposit
In most cases, you’ll need to put down a deposit. This is usually a minimum of 10% of the property’s value, although some lenders do offer mortgages with lower deposit requirements, especially for first-time buyers or under specific schemes. A larger deposit can also help you access better mortgage rates.
Mortgage lending
How much you can borrow from a lender will typically be based on a multiple of your income, minus any regular outgoings and debts. Lenders will look at your financial commitments – including credit card payments, car finance, student loans, and childcare costs - to assess what’s realistically affordable for you.
Additional upfront costs
Stamp Duty: A government tax payable on property purchases above a certain value (though first-time buyers may benefit from relief).
Survey Fees: These vary depending on the type of survey but are essential to assess the condition of the property.
Legal Fees: Solicitors or conveyancers handle the legal side of your purchase and will charge for their services.
Mortgage fees: Some lenders charge arrangement or booking fees, which may be payable upfront or added to the mortgage.
Removal Costs: Don’t forget the cost of moving your belongings!
Ongoing ownership costs
Once you’ve moved in, there are new financial responsibilities to consider:
Buildings and contents insurance: Required by most lenders and important for protecting your investment.
Utilities and council tax: You’ll be responsible for all household bills and local taxes.
Maintenance and repairs: Be prepared for any issues from leaky roofs to boiler breakdowns.
Planning ahead for these costs will ensure you’re financially prepared for homeownership and not just the initial purchase. You can read ore about the cost of buying your home here.
Need help?
Everyone’s circumstances are different, and the amount you can borrow will vary based on a number of factors. That’s why we recommend speaking with one of our friendly mortgage advisers.
We’ll talk you through your options, help you understand your borrowing potential, and make sure you’re clear on all the costs involved - both upfront and ongoing.
Call 01174 531 285 to arrange an appointment or submit an online booking reques here.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Most Buy to Let mortgages are not regulated by the Financial Conduct Authority.
The information on this website is for use of residents of the United Kingdom only. No representations are made as to whether the information is applicable or available in any other country which may have access to it.
Andrews Mortgage Services is a trading name of Andrews & Partners Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.
Approved by The Openwork Partnership on 10/062025.
Read the Openwork Privacy Policy here.