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With so many stories in the media about rising house prices, getting on the property ladder can seem out of reach. But the truth is, you might not need as much as you think to get started.
What can help is to focus on three things:
When you understand those it becomes much clearer what you can realistically afford.
If you've found yourself searching for 'first time buyer mortgage limits', chances are you're trying to work out two things: how much you could borrow towards your first home, and what the current borrowing limits are for first time buyers in the UK.
The reality is, there isn't one set limit for everyone. The amount you can borrow really depends on your financial situation and what feels manageable for you to repay.
If you can comfortably afford the repayments, you may be able to borrow around 5 to 5.5 times your yearly salary.
Use these figures as a rough guide, as lenders will also consider your other financial commitments when deciding what's affordable.
| Salary | Estimated borrowing |
|---|---|
| £30,000 | £150,000 to £165,000 |
| £50,000 | £250,000 to £275,000 |
There's plenty of mortgage calculators around that can help get you started and make your property search feel a bit more manageable.
When you start thinking about affordability and monthly repayments, your deposit starts to feel like more than just a savings goal.
This is often where buyers start weighing things up. Do you buy as soon as you reach a 5% deposit, or wait a bit longer to reduce what you need to borrow? There's no right or wrong answer. It depends on what works best for your finances and goals.
| With a smaller deposit | With a larger deposit |
|---|---|
| Borrow more overall | Borrow less overall |
| Higher monthly repayments | Lower monthly payments |
| Possibly higher interest rates | Access to more competitive rates |
| Help you buy sooner | More breathing room in your budget |
If you’re finding it difficult to save while renting, you’re not alone. That’s why gifted deposits are pretty common among first time buyers.
A gifted deposit is money given to you by a family member, often parents or grandparents, to help you buy your first home.
It can make a big difference in helping you become a homeowner sooner, especially when saving is challenging alongside rent and everyday costs.
If your deposit is coming from a gift, you'll usually still need to provide:
This helps lenders understand your financial situation in your mortgage application.
It might surprise you, but a traditional deposit isn't always the only way to get started. Some first time buyer no deposit options may be availablbe depending on your circumstances.
You may be able to access a no deposit mortgage, such as our Track Record mortgage. If you're 21 or over and can show you've paid all your rent on time for 12 months in a row (within the last 18 months), your options will depend on your circumstances, but it's worth exploring what's possible.
For some renters, that different way of looking at things can make homeownership feel a bit more achievable.
It won't be right for everyone, but it could be worth exploring if saving a deposit is what's been holding you back.
Just remember:
And if affordability is the challenge rather than saving a deposit, our Income Booster mortgage could be the answer. By bringing in other incomes too (up to three extra people), it may help you borrow a bit more, while still keeping you as the legal owner of your home.
With Income Booster, everyone named on the mortgage shares responsibility for the repayments. If someone is helping with the application, they'll need to get independent legal advice before applying, so they know exactly what they're signing up for.
Once you’ve got a clearer picture of your deposit and borrowing power, it’s much easier to focus on homes that fit your budget. From there, you can feel more confident taking that first step into homeownership.
If you don't keep up with your mortgage payments, you could lose your home.
