How to Afford to Buy a House – Simple, Real‑World Tips

Want to own a home but think it’s out of reach? You’re not alone. Most first‑time buyers wonder if their salary, savings, or credit score will ever line up with a mortgage. The good news is you can break the process into clear steps and see exactly what you need to qualify.

1. Know Your Income and Debt Ratio

Start by adding up all regular earnings – salary, bonuses, part‑time work, even side‑hustles. Then list every monthly debt: credit‑card payments, car loans, student loans, and any other recurring obligations. Lenders look at your debt‑to‑income (DTI) ratio, which is debt divided by income. Most UK banks prefer a DTI under 36 %. If yours is higher, try paying down a few balances before you apply.

2. Work Out Your Mortgage Budget

Use a simple formula: take 30 % of your gross monthly income and treat that as the maximum you should spend on mortgage repayments. For example, a £3,000 monthly salary gives you about £900 for payments. Multiply that by 12 and you get a yearly repayment capacity of £10,800. With current rates (around 6‑8 % in 2025), a mortgage calculator shows this supports a loan of roughly £150‑£180k, depending on term length.

Don’t forget other costs: council tax, utilities, insurance, and maintenance. Adding about 15 % for these expenses keeps your budget realistic.

3. Save for a Down‑Payment

The bigger the deposit, the lower your loan and the better the rate you’ll get. Aim for at least 10 % of the property price, but 20 % is ideal. If you’re eyeing a £250k house, a £25k deposit is the minimum. Look into government schemes like Help to Buy or local down‑payment assistance programs – they can shave thousands off the amount you need to pull together.

4. Boost Your Credit Score

Credit matters more than many think. A score above 750 usually lands you the best rates. Pay all bills on time, keep credit‑card balances low, and avoid opening new accounts close to your mortgage application. If your score is lower, consider a short period of “credit repair” before you apply.

5. Choose the Right Mortgage Type

Fixed‑rate deals give you certainty; variable or tracker rates can be cheaper now but may rise later. For first‑timers, a 2‑ or 5‑year fixed rate often balances stability with flexibility. Compare offers from several lenders – the “best bank for first‑time buyers” changes each year, so shop around.

Once you’ve run the numbers, you’ll know whether a £250k house is within reach or if you need to adjust expectations. If the figures still feel tight, consider a shared‑ownership property or a house in a more affordable region. Both options let you get onto the ladder while you build equity.

Need more detail? Check out our post How Much House Can I Afford on $36,000 a Year? 2025 Guide with Real Numbers for a step‑by‑step walk‑through using actual salary data. For tips on improving your credit, see What Credit Score Unlocks a $30,000 Personal Loan Fast? and for down‑payment help, read Virginia Down Payment Assistance: What First‑Time Buyers Need to Know.

Remember, buying a house isn’t magic – it’s math, planning, and a bit of patience. Break the process into these bite‑size actions, stay organized, and you’ll move from “I wish” to “I own” faster than you think.