Many prospective first-time buyers assume their deposit is too small or their income will not allow them to borrow enough. Nicky Kirton explains why it may be worth checking your position before ruling yourself out.
By Nicky Kirton, Mortgage & Protection Adviser at Citrus Financial
Buying a first home can feel like a distant goal. Property prices are high in many parts of the South East, saving while paying rent can be difficult, and mortgage affordability can appear complicated.
As a result, some prospective buyers decide they are not ready before they have spoken to a lender or mortgage adviser.
They may assume that:
- They need a deposit of at least 10%.
- They cannot borrow more than four-and-a-half times their income.
- Their monthly rent has no relevance to what they could afford.
- Every lender will assess them in the same way.
- There is little point checking until they have saved considerably more.
Those assumptions may be correct for some people, but they are not universal rules.
Mortgage products and lender criteria differ. Changes to lending rules have also given some lenders greater flexibility over the number of mortgages they can offer at higher income multiples.
That does not mean everyone can or should borrow more. It does mean some first-time buyers may be closer to buying a home than they realise.
Is four-and-a-half times income a fixed limit?
You may have heard that mortgage lenders will only lend four or four-and-a-half times someone’s annual income.
Income multiples can provide a useful initial guide, but they do not give a complete answer.
Lenders have traditionally faced limits on the proportion of new mortgages they can offer at or above four-and-a-half times a borrower’s income. Recent changes have given individual lenders more flexibility around higher loan-to-income lending, while retaining controls across the mortgage market as a whole.
Some lenders now offer eligible first-time buyers mortgages at higher income multiples, sometimes up to six times income.
These products have specific conditions and will not be suitable or available to everyone. A higher multiple is not an automatic entitlement, and it does not replace a full affordability assessment.
How do lenders decide what you can borrow?
Two people earning the same amount may be offered very different mortgage amounts.
A lender may consider:
- Your basic salary.
- Regular overtime, commission or bonuses.
- Whether you are applying alone or jointly.
- Loans, credit cards and other borrowing.
- Childcare and maintenance costs.
- Dependants.
- The proposed mortgage term.
- Your age and likely retirement date.
- Your credit history.
- The size of your deposit.
- How your finances might cope if costs increased.
Lenders also take different approaches to income.
One may accept a greater proportion of overtime or commission than another. Another may be better suited to someone who has recently changed jobs or has a less straightforward income pattern.
This is why an online borrowing calculator can be a useful starting point, but it should not necessarily be treated as a final answer.
Could a smaller deposit be enough?
A 10% deposit can give a buyer access to a wider selection of mortgages, but it is not always the minimum required.
There are mortgages available to eligible buyers with a 5% deposit, and a smaller number of products may allow borrowing at an even higher percentage of the property’s value.
These products can help people who have sufficient income to support a mortgage but find it difficult to build a larger deposit while paying rent.
However, borrowing a greater proportion of the property’s value can have disadvantages:
- Available mortgage rates may be higher.
- Monthly payments may be larger.
- There is less protection if property prices fall.
- Product and property restrictions may apply.
- Affordability checks can still be demanding.
A smaller deposit may open a door, but it is important to understand the cost and risk before deciding whether to proceed.
How much could you borrow, and how much should you borrow?
These are not necessarily the same question.
A lender’s affordability assessment determines the maximum amount it may be prepared to lend. It does not know every detail of the lifestyle you want to maintain or the financial goals you have outside your mortgage.
Before buying, consider the proposed mortgage payment alongside:
- Council tax.
- Energy and water bills.
- Insurance.
- Service charges or estate charges.
- Maintenance and repairs.
- Travel costs.
- Food and other household spending.
- Savings and emergency funds.
- Possible changes in income or family circumstances.
A mortgage should be affordable on paper and feel manageable in real life.
Borrowing the maximum available could leave very little room for unexpected costs. For some buyers, choosing a less expensive property may provide greater flexibility and peace of mind.
Remember the other costs of buying
The deposit is not the only amount you may need.
Depending on the property and your circumstances, costs may include:
- Solicitor or conveyancer fees.
- Searches.
- A survey.
- Mortgage or valuation fees.
- Moving costs.
- Buildings insurance.
- Initial repairs, furniture or appliances.
- Stamp duty where applicable.
Keeping some savings back after completion can help prevent the first unexpected repair becoming a financial emergency.
An agreement in principle can provide a clearer starting point
An agreement in principle gives an indication of how much a lender may be prepared to lend, based on some initial information about your finances.
It is not a guarantee that the lender will approve a full mortgage application. The property, supporting documents, affordability and credit checks will still need to be considered.
However, it can help you:
- Establish a more realistic property budget.
- Understand whether your current deposit may be sufficient.
- Identify issues that may need attention.
- Show an estate agent that you have begun exploring your mortgage position.
It can therefore be useful to speak to an adviser before arranging numerous viewings or ruling out areas and properties based on assumptions.
Do not reject yourself before checking
For some people, buying a home will still take more time.
You may need to build a larger deposit, reduce other borrowing, improve your credit record or wait until your income is more established.
Finding that out is still useful. It gives you a clearer target and allows you to create a realistic plan.
For others, the position may be more encouraging than expected.
A conversation with a mortgage adviser can help you understand:
- What you may be able to borrow.
- The deposit you might need.
- What monthly payments could look like.
- Which parts of your finances may affect an application.
- Whether it makes sense to apply now or prepare for later.
You do not need to have found a property before beginning that conversation.
Speak to us
Both Steve and I can help first-time buyers understand their mortgage options and the steps involved in buying a home.
Whether you are preparing to buy soon or simply want to find out how far away you may be, we can help you establish a realistic starting point.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Approver Quilter Financial Services Limited. 06/08/2026
About the author: Nicky Kirton is a Mortgage & Protection Adviser at Citrus Financial, with more than 30 years’ experience in financial services. She helps clients at every stage of their property journey, from first-time buyers trying to understand what might be possible to home movers, remortgagers and landlords. Nicky is known for her friendly, straightforward approach and for making the mortgage process easier to understand.
