Stage 1 of 7
Buying a home
Start with a realistic property budget before you compare listings, mortgage deals, or stretch your deposit too thin.
What this stage means
This stage is about turning your income, deposit, debts, and regular spending into a mortgage budget you can live with.
The goal is not to find the maximum a lender might offer. It is to understand a sensible range before you view homes or commit emotionally to a price.
Key numbers to understand
- Gross household income and any stable extra income a lender may consider.
- Deposit amount, deposit percentage, and the resulting loan-to-value.
- Monthly repayment at a cautious interest rate, not only today's advertised rate.
- Existing credit commitments, childcare, transport, service charges, and other recurring costs.
Common mistakes
- Treating an online borrowing estimate as a guaranteed mortgage offer.
- Forgetting that a bigger mortgage can reduce room for repairs, furniture, insurance, and emergency savings.
- Comparing properties before checking how repayments might feel if rates or household costs rise.
How to interpret the result
Treat the calculator output as a planning estimate. A lender, broker, or adviser may use different affordability rules.
If the payment looks tight, reduce the property price, increase the deposit, extend the term only with care, or revisit other regular spending before moving on.
Next step in the journey
Once the budget feels plausible, estimate the wider buying costs so you know how much cash is needed before completion.
Continue to Buying costs