How Much Can I Borrow For a Mortgage?

A mortgage is likely the biggest expense when buying a house, so knowing how much you can afford is crucial. Whether buying your first home or upsizing to accommodate your growing family, we have you covered. Learn about how much you can borrow, what lenders will consider and what to do if you’re self-employed.

How do lenders determine my mortgage affordability?

Lenders consider the following when determining your mortgage affordability:

• Credit score
• Income
• Outgoings
• The size of your deposit
• Employment status
• Other debts

1. Credit score

Your credit score is among the first elements lenders look at when assessing your mortgage affordability. This helps them understand how you handle your finances.

2. Income

Lenders will ask about your income, including any bonuses or tax credits. This ensures you get the best deal for your circumstances. They’ll want to know your combined income if you apply for a joint mortgage.

3. Outgoings

Lenders check how much of your income you spend to evaluate the size of your deposit.

4. The size of your deposit

The size of your deposit can significantly affect how much you can borrow. Generally, the higher the deposit, the more competitive your rate and the smaller your monthly repayments.

5. Employment status

You’ll need to provide your employment letter if you’re employed. If self-employed, you must provide two or three years’ worth of SA302 tax calculations and the tax year overviews.

6. Other debts

Lenders check whether you have any loans or credit cards, which may impact your ability to afford your monthly repayments.

How much money can I afford to borrow?

How much you can borrow depends on your financial circumstances. We recommend borrowing an amount you can comfortably repay so you don’t need to worry later.

How much deposit do I need to get a mortgage?

This depends on your situation. Typically, a 10% deposit is needed, offering competitive rates. Lenders consider your loan-to-value ratio (LTV) – the amount you want to borrow compared to the overall loan. The higher your deposit, the lower the LTV and the interest rate.

For example, if your new home costs £300,000 and you have a 10% deposit (£30,000), your LTV will be 90%.

Some lenders offer 95% or 100% mortgages.

How much can I borrow if I’m self-employed?

Generally, if you have a 10% deposit and have been self-employed for two years, you can borrow around 4.5x your gross annual income.

If you’re using our Mortgage Affordability Calculator, think about what your annual income could be. This way, you’ll know roughly how much you can afford, including future repayments and unforeseen payments.

Explore the different mortgage types to find the right one for your circumstances.

Buying with Barratt Homes means accessing stylish, energy-efficient homes and unique homebuying offers. Contact our Sales Advisers today to reserve your property.

Help to Sell

If you’re looking to start your next adventure, but are worried about the hassle of moving, we have a range of schemes available to help you sell your existing home.

Part Exchange

We could be your guaranteed buyer, so no stress or fuss, just an easy move for you and your family. 

Armed Forces Deposit Contribution

We're offering Britain's military servicemen and women a 5% deposit contribution to help them buy a brand-new home.

Own New - Rate Reducer

Own New - Rate Reducer is a brand-new scheme available on new build homes that could mean lower mortgage rates and reduced monthly payments.

Low Deposit Offers

If you have a low deposit, we have a variety of schemes available to help make moving more affordable.


Key Worker Deposit Contribution

As a thank you for the support provided to our communities, we are offering key workers a contribution of £1,000 for every £20,000 spent on the purchase price, plus flooring.

Parent Power

If you’re getting financial support from your family or friends to help you get on the property ladder, we could match it, up to a maximum of 5% of the purchase price.