{"id":578645,"date":"2026-07-21T15:44:33","date_gmt":"2026-07-21T14:44:33","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=578645"},"modified":"2026-07-21T15:44:33","modified_gmt":"2026-07-21T14:44:33","slug":"first-time-buyer-how-much-can-i-borrow","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/mortgages\/first-time-buyer-mortgages\/first-time-buyer-how-much-can-i-borrow","title":{"rendered":"I\u2019m a first-time buyer… How much can I borrow?"},"content":{"rendered":"

The average mortgage for a first-time buyer increased to \u00a3229,214 in the first quarter of 2026 according to Tembo<\/a>, but the amount you can borrow will vary depending on your personal situation. So, if you\u2019re looking to get on the property ladder, we delve into how you can work this out.<\/p>

How much can I borrow as a first-time buyer?<\/h3>

As a very general rule, first-time buyers can typically borrow around 4.5 times their income (although some lenders will offer a higher limit of up to 5.5 or even 6 times, with numerous caveats). Quick, basic, online mortgage calculators on bank websites can also give you a rough estimate.<\/p>

But ultimately the 4.5x rule and the online calculators can be too blunt and misleading. Using an impartial online mortgage broker, like Tembo or L&C, to scan deals across the market and to consider your specific situation is a sensible way to get a more accurate idea of what you can borrow. <\/p>

For example, when I was looking to assess my budget and affordability as a first-time buyer, I used Tembo<\/a> to fill out a simple form with my key details and receive a Mortgage in Principle, which helped me understand my position. They even said they could boost the average budget by \u00a382,000, which was reassuring to hear!<\/p>

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Getting advice from a full-market mortgage broker typically starts with creating an account and entering a few basic details online.<\/div><\/div>
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A broker like Tembo can help first-time buyers gauge what monthly payments would be affordable, based on your income and expenditure.<\/div><\/div>
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A mortgage broker will also scan lenders to give an idea of your borrowing power. Together with your deposit this makes up your home-buying budget.<\/div><\/div>
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For first-time buyers it\u2019s especially useful to chat with an expert adviser, either face-to-face or \u2013 as is often more convenient \u2013 over the phone.<\/div><\/div><\/div>

As an example, HSBC states<\/a> it\u2019ll stretch to as much as 5.5 times your income. BUT you\u2019ll need to be putting down at least a 10% deposit, have a minimum income of \u00a335,000 (or a joint income of \u00a355,000 if applying with a partner) and have excellent credit in order to apply.<\/p>

Checking each bank\u2019s terms is an almost impossible task. There are hundreds of lenders in the UK. A digital tool like Tembo\u2019s helps you to uncover all of these in 10 minutes. In general, good brokers will know the requirements for all the lenders on their panel.<\/p>

What deposit do I need as a first-time buyer?<\/h3>

Statistics<\/a> show that the average first-time buyer deposit is \u00a361,090, but this will vary depending on personal circumstances. It\u2019s possible to access a mortgage with a much lower deposit of around 5%.<\/p>

However, a larger deposit means you have a lower loan-to-value ratio (LTV) \u2013 the percentage of the property covered by a mortgage. This means you borrow less and unlock better mortgage interest rates. <\/p>

LTVs are usually grouped in 5% or 10% increments, with rates typically dropping once you enter a lower tier. For example, an 80% LTV would give you access to lower interest rates than an 85% LTV, but that would still give you lower interest rates than a 90% LTV.<\/p>

Using the most recent average first-time buyer house price<\/a> in the UK \u2013 \u00a3227,994 \u2013 here\u2019s a breakdown of how this works for different deposits. <\/p>
Deposit %<\/th>Deposit amount<\/th>LTV<\/th>Mortgage size<\/th><\/tr><\/thead>
5%<\/th>\u00a311,400<\/td>95%<\/td>\u00a3216,594<\/td><\/tr>
10%<\/th>\u00a322,799<\/td>90%<\/td>\u00a3205,195<\/td><\/tr>
15%<\/th>\u00a334,199<\/td>85%<\/td>\u00a3193,795<\/td><\/tr>
20%<\/th>\u00a345,599<\/td>80%<\/td>\u00a3182,395<\/td><\/tr>
25%<\/th>\u00a356,999<\/td>75%<\/td>\u00a3170,996<\/td><\/tr>
30%<\/th>\u00a368,398<\/td>70%<\/td>\u00a3159,596<\/td><\/tr>
35%<\/th>\u00a379,798<\/td>65%<\/td>\u00a3148,196<\/td><\/tr>
40%<\/th>\u00a391,198<\/td>60%<\/td>\u00a3136,796<\/td><\/tr><\/tbody><\/table>

Mortgage affordability stress test<\/h3>

Mortgage lenders will generally \u201cstress test\u201d your finances to make sure you can afford repayments if interest rates rise.<\/p>

Mandatory testing has now been removed by the Bank of England, but in most cases, lenders will still independently evaluate your income and lifestyle. <\/p>

During the stress test, the lender will examine your income, household make-up and monthly outgoings and expenses to make sure you\u2019re not taking on more debt than you can afford. <\/p>

Credit history and eligibility<\/h3>

The mortgage options available to you as a first-time buyer will also depend on your credit history. Lenders will look at the past 6 years to assess whether you are a reliable borrower.<\/p>

If you\u2019ve recently had missed payments, defaults, CCJs or other examples of poor credit history, you may face issues with borrowing. Similarly, if you have a limited credit history, lenders may find it hard to assess your affordability. <\/p>

A poor credit score won\u2019t necessarily prevent you from getting a mortgage, but it might restrict your options or lead to higher interest rates. If you have adverse credit, using an independent online broker, like Tembo, Simply Lending or Mojo Mortgages, can help match you with specialist lenders. A broker will have a better sense of which lenders look at more than just credit scores to try to find a way forward.<\/p>

How to borrow more as a first-time buyer: Dos and don\u2019ts<\/h3>

There are some important actions to consider when it comes to boosting your mortgage affordability:<\/p>

Do<\/h4>