Dreaming of your first home but unsure how much mortgage you can actually get? With house prices still climbing and interest rates shifting, working out affordability in 2025 and beyond can feel tricky. This straightforward guide explains everything clearly from income multiples and stress tests to the latest government schemes that could help you get on the property ladder sooner.

Whether you’re looking in Kent, Hampshire, Berkshire or anywhere else in the UK, here’s exactly what lenders look at and how to work out your true borrowing power.

 What Determines Your Mortgage Affordability in the UK?

Lenders don’t just look at your salary. The Financial Conduct Authority (FCA) requires every lender to carry out strict affordability checks and stress tests, they’ll check you could still pay if interest rates rose by 3% or more.

Key factors include:

• Income multiples – most lenders offer 4 – 4.5 times your gross annual income. Some go up to 5.5 times for higher earners or certain professions (doctors, teachers, etc.).
• Debt-to-income ratio – they’ll add up all your commitments (credit cards, loans, childcare, pensions) and prefer this to stay below 36–40%.
• Deposit size – the bigger your deposit, the lower the risk for the lender and usually the better the interest rate.
• Credit score – a strong score opens more deals and lower rates. Your mortgage broker can guide you to take free credit checks if required.
• Employment history – self-employed buyers normally need 2–3 years of accounts.

Quick online calculators like MoneyHelper give a rough idea, but they don’t replace a full lender assessment. To find out exactly what you can borrow right now, speak to a whole-of-market broker like KingGate Finance who runs

 detailed affordability checks for free.

Government Schemes Boosting First-Time Buyers in 2025

The rising price of properties in the UK has significantly reduced the affordability. However, good news is there are several schemes can significantly increase what you can afford:

• Permanent Mortgage Guarantee Scheme – buy with just a 5% deposit (95% LTV) on eligible properties.
• First Homes scheme – 30–50% discount on selected new-builds for local first-time buyers and key workers.
• Lifetime ISA (LISA) – government adds 25% bonus (up to £1,000 a year) on savings towards your first home.
• Shared Ownership – buy 10–75% of a property and pay rent on the rest.
• Stamp Duty relief – first-time buyers pay no Stamp Duty on the first £300,000 for properties up to £500,000.

These schemes can effectively add tens of thousands to your budget. Our advisors check which ones you qualify for during your initial free consultation.

Common Mistakes First-Time Buyers Make (and How to Avoid Them)

If not researched well or if you have not sought advice from the professionals then many first-time buyers are bound to make mistakes. Here are some of the common mistakes first time buyers make:

• Borrowing the absolute maximum – Just because a lender offers it doesn’t mean you should take it. Always leave breathing room for rate rises or unexpected costs.
• Forgetting the extra costs – Budget £8,000–£15,000 plus for surveys, legal fees, removals, furniture and Stamp Duty.
• Not checking credit reports early – Fix errors or old missed payments months before applying. It can make a big difference to the rate you’re offered.
• Going direct to one bank – Your own bank rarely has the best deal. Whole-of-market brokers compare hundreds of lenders.
• Making financial changes mid-application – New car finance, job changes or large credit card spending can cause the mortgage offer to be withdrawn.
• Skipping a proper survey – A lender’s valuation is not a survey. A HomeBuyer Report or full structural survey can save you from expensive surprises.
• No buildings insurance in place on exchange – From exchange day you’re legally responsible, arrange cover the same day or risk losing everything.

 Ready to Find Out Exactly How Much You Can Borrow?

Every situation is different. The only way to get an accurate figure based on today’s rates and your personal circumstances is to speak to an experienced, CeMAP-qualified mortgage advisor.

At KingsGate Finance we offer initial free, no-obligation affordability reviews,  we’ll check your eligibility for all the latest schemes and search the whole market to find the best deal for you.

Do contact us or email info@kingsgatefinance.com or book your free 30 mins initial consultation. We make your mortgage journey simple.

Advice You Can Trust 🙏