Can you afford more than you think?

There are plenty of myths when it comes to buying a home. And while it’s absolutely not a myth that it can be one of the most stressful life events you’ll ever go through, we’re here to help take one big pressure off your shoulders – affordability.

We’re going to bust some of the most common misconceptions about what it really takes to buy a home, and show you why you might be closer than you think.

“I can’t borrow enough”

Gone are the days when mortgages were capped at just three times your household income. Today, lenders consider a wide range of factors when assessing how much you can borrow – not just your salary.

From your credit history and outgoings, to dependents, job stability, and even the type of property you’re buying, affordability is now a much more personalised calculation. And in many cases, buyers are surprised to find they can borrow more than they expected.

Paul McCarthy, National Key Account Manager at Santander says:

“Santander became the first large lender to improve our residential affordability rates in response to the FCA’s call in March for lenders to be more flexible. This means our residential affordability rates are the lowest they’ve been since 2022.”

If you’ve previously checked your borrowing potential – even just a few months back – it might be worth revisiting. The market is shifting, and your options might be better than ever.

“I can’t afford the monthly payment”

It’s a common worry – but the numbers might surprise you.

According to Zoopla, one of the UK’s leading property websites, average monthly mortgage payments for first-time buyers are £1,038, while the average rent sits at £1,248. That’s a 20% difference – meaning buying could actually cost less each month than renting.

When comparing monthly costs, don’t forget to consider the savings a new-build home can offer. With better energy efficiency, lower maintenance costs, and warranties that cover key structural and appliance issues, new homes can help stretch your budget further each month.

According to The Home Builders Federation’s ‘Watt a Save’ report, new build homeowners could save more than an average of £780 a year on their heating, hot water and lighting bills, compared with purchasers of older properties. This saving rises to £979 per year when comparing the energy performance of houses specifically, rather than flats or bungalows.

So before ruling yourself out, it’s worth taking a closer look – you might already be paying more than a mortgage in rent and you could see some additional savings when considering new builds.

“I can’t afford a 20% deposit”

The good news? You don’t need one.

There are many incentives from house builders and low-deposit mortgage options available to help you get on the ladder with far less than 20%. In fact, some buyers put down as little as 5%, and developers often offer deposit contributions or cashback deals to boost what you already have.

Zoopla’s Commercial Director Alex Rose says:

“Saving a large enough deposit to purchase a home remains the biggest barrier of entry for those looking to get on the property ladder. However it’s worth exploring first-time deposit schemes and new innovative lending products offered by certain banks as they may unlock a home purchase with a smaller deposit.”

Mortgage Light’s Siobhan Holbrook says:

“There are lenders who may accept as little as a 5% deposit – and in some cases, even 0% deposit. You can use a loan for a deposit or you may get the builder to refund a 5% deposit upon completion if you are able to get a family member to lend it to you. There are lots of options, so it’s always worth speaking with a mortgage advisor.”

“I need to wait for interest rates to come back down”

It’s been a turbulent few years. But after a period of rapid increases and uncertainty, mortgage rates have stabilised. Most experts now expect them to remain steady over the next 3–5 years, offering a much-needed sense of predictability for buyers.

At the same time, house prices continue to rise. If you‘re already a homeowner, this could mean you have more equity than you realise, reducing how much you need to borrow for your next move. If you’re looking to get on the ladder, now could be the time to start building equity of your own.

Siobhan Holbrook, Mortgage Lights says:

“Unless there is an unexpected change in the market, the forecast suggests rates are not going to shift too much one way or the other. But what will shift is the value of the houses, so right now whilst the market is deemed as flat it is an exceptional time to buy.”

Your First Step Costs Nothing

You can check your affordability without any commitment. Speaking to a mortgage advisor doesn’t mean you’re locked into anything – and many offer free initial advice to help you understand where you stand.

You don’t need to have it all figured out – just find out what’s possible. You might be ready to own your new home sooner than you think. And while we can’t promise that moving house won’t be stressful (it almost always is!), we can give you the tools and insight to answer that big question:

Can you afford more than you think?