Reviewed and updated on 1 November 2026.
Whether you can afford to buy a home depends on local prices, your income, the deposit you can build and the costs of owning it. There is no single answer for a generation, and renting can be a reasonable choice when it gives you the flexibility or budget you need.
Start with a realistic monthly budget
Work out what you can save after essential spending and debt payments. Keep a separate allowance for unexpected costs. A target date can help you plan, but avoid putting a near-term deposit into risky investments simply to try to reach it faster.
Our guide to saving for a mortgage deposit offers budgeting ideas. The amount you can borrow is a separate question from how much you would feel comfortable repaying.
Compare homes you could actually buy
Research suitable properties in specific areas and compare asking prices with completed sales where possible. City-wide averages can conceal large differences between neighbourhoods and property types. Think about travel costs, the condition of the home and whether it meets your likely needs.
Allow for buying and ownership costs
Budget for legal work, surveys, moving, mortgage fees and any applicable property tax, as well as the deposit. After moving in, you may need to pay for repairs, insurance and service charges. MoneyHelper’s guide to buying and moving costs provides a UK checklist.
Do not assume your mortgage payment will always be lower than rent or that wages will rise while repayments fall. Mortgage costs can change when a deal ends. Maintenance costs and periods of reduced income also need room in the budget.
Understand the lender’s assessment
A lender considers affordability using information about income, outgoings, commitments and credit history, alongside its lending criteria. A salary multiple alone cannot tell you what it will offer. A calculator or agreement in principle is not a final guarantee of a mortgage.
Check help that applies where you live
Eligibility and costs vary between homeownership schemes and UK nations. Use official homeownership scheme information and read the conditions before assuming you qualify. Shared ownership and buying jointly also create ongoing responsibilities that need careful consideration.
Make a decision that fits your finances
Compare the full cost of buying with renting, including how long you expect to stay and your ability to manage unexpected costs. If buying with someone else, get independent legal advice about ownership, payments and what happens if one person wants to leave. A qualified mortgage adviser can explain borrowing options for your circumstances.
