How Much Can You Borrow as a First-Time Buyer?

If you’re just starting to think about buying your first home, one of the biggest questions is how much you could realistically borrow. Understanding this early can help you set your budget and plan your savings. 

The income multiple rule 

As a general rule, most high-street lenders allow first-time buyers to borrow around 4–4.5 times their annual income. However, income stretch products are becoming more common. Depending on your salary and profession, some lenders may now offer 5.5x or even 6x your income, particularly if you have a larger deposit or choose a long-term fixed-rate mortgage. 

If you’re buying with someone else, your combined income will be taken into account, which can significantly increase your borrowing power. For more on the legal considerations of buying jointly, see our guide on the best way to legally buy a house with another person. 

What you can expect with Setfords

More time, more attention: With no targets, Setfords lawyers can dedicate more time to you.

Ultimate flexibility: Our lawyers can tailor their schedules to meet your needs.

Nationwide coverage: with hundreds of consultant lawyers across the UK, we’ll connect you with the right expert.

Dedicated specialist legal partner: work directly with your chosen lawyer from start to finish.

Highly experienced: Setfords lawyers have an average of 20 years’ experience, so you can be assured you’re in safe hands.

Capacity-based allocation: our lawyers never take on more work than they can handle, so you get the focus and attention you deserve.

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How lenders assess affordability 

The amount you can borrow isn’t just a simple calculation of your salary. Lenders carry out strict affordability checks that look at: 

• Your debt-to-income ratio – existing debts like car finance, personal loans, and student loans 

• Committed outgoings – regular costs such as childcare, insurance, and even significant subscription services 

• Credit history – a clean credit report is essential for accessing the highest income multiples 

For more on credit requirements, see our guide on what credit score you need to buy a house. 

Borrowing vs affordability 

It’s important to remember that borrowing the maximum amount a lender offers isn’t always the best idea. It’s wise to consider what monthly repayments you can comfortably manage, factoring in bills, living costs, and the risk of interest rate changes in the future. 

For a fuller picture of the costs involved in buying, see our guide on what to save for besides a deposit. 

Final Thoughts 

Knowing how much you could borrow helps first-time buyers plan with confidence. Our conveyancing team at Setfords can guide you through the legal steps once you’ve secured your Mortgage in Principle and are ready to make an offer.  

Get your free conveyancing quote today.