One of the first and most important questions every homebuyer asks is: “What mortgage can I afford?”
Whether you’re buying your first home, upsizing, or relocating, understanding your borrowing potential is the foundation for a smart, confident move. At HFA Mortgage & Protection, we work with clients every day to help them understand what’s realistic, what’s responsible, and what’s possible when it comes to mortgage affordability.
Here’s what you need to know.
Affordability Isn’t Just About Salary
When lenders assess how much you can borrow, they look at much more than just your income.
Yes, your salary is a key factor but so is:
• Your monthly expenses (credit cards, loans, childcare, etc.)
• Your credit score and history
• Your employment type and stability
• Your deposit size
• Your age and mortgage term
This is why two people earning the same salary could be approved for very different mortgage amounts. It’s all about the bigger picture of your finances.
How Lenders Calculate What You Can Borrow
Most lenders start by using a multiple of your income to give a rough estimate. For example:
• If you earn £30,000 a year, a lender might offer up to 4.5x that amount – £135,000
• If you’re buying with a partner earning £25,000, the joint income of £55,000 could give you up to £247,500
But these are only starting points.
Lenders then perform a detailed affordability assessment, where they consider your outgoings and how you’d cope with potential rate increases. This is called stress testing.
At HFA Mortgage & Protection, we do this in-house before you even apply, so you know exactly where you stand.
Monthly Payments Matter More Than Loan Size
Just because you’re offered a certain amount doesn’t mean you should borrow the maximum.
It’s important to ask yourself:
• What monthly payment would feel comfortable?
• How would things feel if rates went up slightly?
• Do I want to leave room for savings, travel, or growing a family?
We always help clients consider the full picture, not just what they can borrow, but what they’ll feel confident repaying every month.
Deposit Size Can Make a Difference
Having a large deposit can often be more appealing to lenders, as the loan to value ratio becomes less, the wider range of mortgage products become possible to your circumstances.
• With 5% deposit, your options may be more limited, and rates slightly higher
• With 10% or 15%, you may access more competitive rates
• 20%+ can open doors to some of the lower interest rates in the market
Don’t worry if your deposit is small, there are still options available. But it’s good to understand how it affects your affordability and repayments.
Use a Mortgage Adviser, Not Just an Online Calculator
Mortgage calculators can be a great starting point but they often give overly optimistic or inconsistent results.
At HFA Mortgage & Protection, we go deeper:
• We assess your income and outgoings thoroughly
• We compare a wide range of lender options tailored to your situation
• We help you plan not just for today, but for your future too
Whether you’re employed, self-employed, have variable income or just a complex financial picture, we’ll work to find a product that works for you.
What’s Next?
If you’re thinking about buying, your first step should be to find out what’s realistic. That’s where we come in.
We’ll help you:
• Understand your borrowing potential
• Explore options with different deposit levels and mortgage terms
• Get a Decision in Principle so you’re ready to house hunt with confidence
We know that no two clients are the same and we work on a case by case basis to find you the most suitable mortgage product.
Ready to Get Started?
At HFA Mortgage & Protection, we believe affordability isn’t about pushing limits, it’s about creating long-term stability for your future. Whether you’re months away from moving or just starting to explore, we’re here to help with suitable, expert advice for your needs.
Let’s talk about what you can afford—start here: www.hfassociates.uk
Important Notice:
There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £195 to £1500, and this will be discussed and agreed with you at the earliest opportunity.
Your home may be repossessed if you do not keep up repayments on your mortgage.
