Buy $600k House – Real Steps to Get the Keys

Thinking about a $600,000 home can feel like staring at a mountain. The good news? With the right numbers and a clear plan, it’s doable. Let’s break down the money you’ll need, the loan choices that work in the UK, and a few shortcuts to keep the process smooth.

How Much Income Really Covers a $600k Property?

Most lenders use a 4.5 × annual income rule. That means you’d need roughly £133,000 a year before tax to qualify for a mortgage on a £600k house. If your income is lower, you can still qualify by putting a bigger deposit or choosing a longer mortgage term, but the monthly payments will be higher.

Here’s a quick snapshot:

• Purchase price: £600,000
• Typical mortgage‑to‑value (MTV): 80% (you put 20% down)
• Deposit needed: £120,000
• Loan amount: £480,000
• Interest rate (2025 average): 5.5% fixed for 5 years
• Monthly payment (principal + interest): about £2,740

Add council tax, utilities and insurance, and you’re looking at roughly £3,300‑£3,500 a month. Make sure your net income after taxes can comfortably cover that plus your other bills.

Smart Ways to Boost Your Buying Power

1. Save a bigger deposit. Every extra 5% you put down cuts the loan size and the monthly payment. If you can manage a 30% deposit (£180,000), the loan drops to £420,000 and the payment falls by about £300 per month.

2. Use government schemes. In England, the Help to Buy Equity Loan can cover up to 20% of the price for new builds, letting you keep a 5% cash deposit. Check if the property you like qualifies.

3. Consider a longer term. Extending from 25 to 30 years reduces the monthly bill, but you’ll pay more interest overall. Do the math to see which balance works for you.

4. Shop for the best rate. A difference of 0.5% in interest can save you £150‑£200 a month. Use comparison sites, talk to several lenders, and ask about fee‑only mortgage brokers – they don’t earn a commission from the bank, so they can find cheaper deals.

5. Reduce other debts. Lenders look at your Debt‑to‑Income (DTI) ratio. Pay off credit cards or personal loans first to improve the ratio and increase the amount you can borrow.

Now you have the big picture: income, deposit, mortgage options, and a few hacks to stretch every pound. The next step is simple – sit down with a mortgage adviser, run the numbers on the exact house you love, and start the application. The more prepared you are, the smoother the journey to your new front door.