First-Time Buyer Affordability Calculator
Find out how much you can afford as a first-time buyer. Enter your income, deposit and lending criteria to see your maximum property price, monthly repayment, stamp duty and total upfront costs.
Last updated: April 2026
How mortgage affordability is assessed in the UK
UK mortgage lenders use two main methods to determine how much you can borrow: income multiples (typically 4–4.5 times your gross annual income) and affordability modelling (stress-testing the repayment against a higher interest rate, usually 3% above the initial rate). Both tests must be passed, and the lower of the two results determines your maximum loan. This calculator uses the income multiple approach as the primary estimate, with affordability as a secondary check.
The stress test
Since the FCA's Mortgage Market Review in 2014, all regulated lenders must stress-test mortgage applications at a higher rate to ensure borrowers can afford repayments if rates rise. At a 4.5% initial rate with a typical 3% stress buffer, the lender models your ability to pay at 7.5%. If the stressed payment exceeds roughly 45% of your net income, the lender may reduce the loan offered. First-time buyers should factor in that the income multiple displayed may be further constrained by the affordability calculation, particularly at higher loan amounts.
Schemes for first-time buyers
The Lifetime ISA (LISA) offers a 25% government bonus on contributions up to £4,000 per year toward a first home purchase (on properties up to £450,000). The Shared Ownership scheme allows you to buy a share (25–75%) of a property and pay rent on the rest, reducing the deposit and mortgage required. The Mortgage Guarantee Scheme (where available) allows lenders to offer 95% LTV mortgages with government backing. Each scheme has eligibility requirements and trade-offs worth understanding before applying.