• How Much Can I Borrow?
• How Much: Secured Loan?
• How Much: Unsecured Loan?
• How Much: Remortgage?
• How Much: Payday Loan?
• How Much: First Time Buyer?

Loan Calculator
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Loan Term:	1 year 2 years 3 years 4 years 5 years 6 years 7 years 8 years 9 years 10 years 11 years 12 years 13 years 14 years 15 years 16 years 17 years 18 years 19 years 20 years 21 years 22 years 23 years 24 years 25 years
Interest Rate (APR):	5% 5.2% 5.4% 5.6% 5.8% 6% 6.2% 6.4% 6.6% 6.8% 7% 7.2% 7.4% 7.6% 7.8% 8% 8.2% 8.4% 8.6% 8.8% 9% 9.2% 9.4% 9.6% 9.8% 10% 10.2% 10.4% 10.6% 10.8% 11% 11.2% 11.4% 11.6% 11.8% 12% 12.2% 12.4% 12.6% 12.8% 13% 13.2% 13.4% 13.6% 13.8% 14% 14.2% 14.4% 14.6% 14.8% 15%
Monthly Payment:

How Much Can I Borrow As A First Time Buyer?

Many young people are finding it harder to get onto the first rung of the property ladder. As house prices increase faster than our salaries do, it can even be hard to save up for a deposit. There is the option of applying for an unsecured personal loan to use as your initial deposit, however depending on the other loans and existing debt you may have, it could actually affect the amount you can borrow for a mortgage.

The cheapest and best option by far is to save up as much of a deposit as you can before applying for a mortgage. Taking out your very first mortgage is always a big financial step so you need to make sure you have researched it thoroughly and compared a number of mortgage lenders to ensure you have the best deal possible.

So how much can I borrow?

The amount you can borrow for your mortgage will depend on a few factors. The deposit you are putting down, the cost of the property you want to buy along with your income. If you are borrowing just in your name, you can usually borrow between 3.5 times to 4 times your current single salary. If you are buying as a couple, the lender will look at your joint earnings and times them by 2.5 - 3.5.

Most lenders will require you to pay a proportion of the property value which varies between lenders but is between 5 - 25% of the cost of the property you want to purchase. This means you can borrow between 75% and 95% of the value of the house. Essentially the bigger the deposit you have, the better the interest rate you will get as the Loan to Value (LTV) will be lower. You can get 100% mortgage deals, but these can have very high interest rates as the lender will view it as a higher risk for themselves.

For example: You earn a salary of £15,000 and your partner is on £20,000, so you could realistically borrow £122,500 if you multiply your combined income by 3.5. The home you want to buy is worth £120,000. You have saved up a deposit of £6,000 which is 5% of the property value. You should have no problem getting a 95% mortgage with your chosen lender.

It can help first time buyers to get a mortgage, if you show you have been paying rent on a regular basis with no missed payments. If the amount you pay in rent is similar to your projected mortgage repayments, even better. Your credit history needs to be good for you to get the best rate, but even if you have bad credit, you can still get a first time buyers mortgage.

The important thing when taking out a mortgage is to make sure you don't borrow more than you can afford, even if you are offered it. The worse thing is to get a mortgage that stretches your budget to the limit as this gives you no leeway for any rise in interest rates or living expenses, and could put you into debt.