Cashback Remortgages · First-time buyers
How Much Can a First-Time Buyer Borrow?
How much you can borrow depends on an affordability assessment, not just a multiple of income. Lenders weigh your commitments and test the payment against a higher rate.
What the lender weighs
Income and its stability, regular commitments such as loans and credit cards, dependants and essential costs all feed the calculation, which is then stress-tested against a higher rate. This is why two lenders can offer different amounts.
A larger deposit changes the loan-to-value band rather than the affordability test itself.
Widening what you can borrow
Reducing monthly commitments before applying can help, and a longer term lowers the payment but increases total interest. Advice can match your figures to lenders whose approach suits you.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. 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 FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.