What Mortgage Can I Afford? A Guide for First-Time Buyers & Home Movers

Expert Mortgage Advice from Matthew Price at Bespoke Money

Buying a home is one of the most exciting (and biggest) financial decisions you’ll ever make. But how much mortgage can you actually afford? Whether you’re a first-time buyer or looking to move home, understanding your budget is key.

What Determines Mortgage Affordability?

Your mortgage affordability is based on:
📌 Income – Your salary and additional income sources
📌 Debt-to-income ratio – How much debt you currently have
📌 Credit score – A higher score can unlock better deals
📌 Deposit size – A bigger deposit can mean lower monthly payments

A simple rule to follow is the 28/36 Rule:
✔ No more than 28% of your gross income should go towards mortgage payments
✔ Your total debt repayments (mortgage, loans, credit cards) should not exceed 36% of your income

However, affordability isn’t just about lender limits—it’s about ensuring your mortgage is comfortable for your lifestyle.

Steps to Assess Your Affordability

1️⃣ Calculate Your Income – Include all sources (salary, bonuses, side income).
2️⃣ Track Your Expenses – Account for bills, subscriptions, transport, and other living costs.
3️⃣ Review Your Debts – Consider credit cards, car loans, and any outstanding finance.
4️⃣ Set a Realistic Budget – Make sure your mortgage payments don’t leave you overstretched.

Getting Pre-Approved for a Mortgage

💡 Why get pre-approved?
✔ Gives you a realistic price range
✔ Shows sellers you’re a serious buyer
✔ Helps avoid surprises when applying for a mortgage

A pre-approval means a lender has reviewed your finances and given you an estimate of how much they will lend.

What Can Affect Your Mortgage Affordability?

📊 Credit Score – Higher scores mean better mortgage rates.
💳 Debt Levels – The less debt you have, the more you can borrow.
💰 Deposit Amount – A bigger deposit can reduce your monthly payments.
📈 Interest Rates – Lower rates make mortgages more affordable.

If affordability is an issue, Bespoke Money can help by exploring alternative lenders and government schemes.

Take the Next Step Towards Homeownership

Understanding how much mortgage you can afford is the first step in securing your dream home.

📞 Speak to Matthew Price at Bespoke Money today to explore your options.

📍 Bespoke Money | 4 Cantelupe Mews, Cantelupe Road, East Grinstead, RH19 3BG
📧 matt@bespokemoney.net
📞 Direct: 01342 651505 | Office: 0203 793 3690 | Mobile: 07813 810050

💬 “The biggest compliment you can give us is referring a friend or colleague!”