Planning to buy your first home in 2025? Your affordability profile—and how much of your income is already committed to debt—could make or break your mortgage application.
Even with a strong income, if too much of it is already tied up in debt repayments, lenders may still see you as too risky. UK mortgage providers assess affordability carefully—factoring in your monthly financial commitments to determine whether you can comfortably manage repayments alongside your existing obligations.
Olle Pettersson, personal finance expert and editor at Finansplassen, shares five practical ways UK buyers can improve their affordability profile and boost their chances of securing a mortgage:
1. Pay down high-interest debt first
Credit cards and short-term personal loans weigh heavily in affordability checks. Focus on clearing these balances—especially high-interest accounts—before you apply. Reducing your monthly outgoings strengthens your affordability profile and increases your capacity to manage a mortgage.
2. Avoid new credit or finance agreements
Now’s not the time to take out a car loan or finance a big purchase. Even small monthly payments can tip the balance against you in a lender’s affordability assessment.
3. Increase your income where possible
Additional freelance work, a pay rise, or part-time income can boost your gross monthly earnings—helping you meet lender affordability criteria and better manage future repayments.
4. Save for a larger deposit
The bigger the deposit, the smaller the loan you’ll need—and the less pressure on your monthly budget. A 10–15% deposit can reduce your loan-to-value (LTV) ratio, lower your repayments, and secure more favourable mortgage terms.
5. Run your own affordability check
Before applying, use a mortgage calculator to estimate your current borrowing power. Instead of focusing on set percentages, ensure your current debt repayments and essential expenses leave sufficient room for mortgage costs—even under potential interest rate increases. Use affordability calculators to test different scenarios and adjust your budget if needed.
Olle Pettersson adds:
“Think of your affordability profile as your financial first impression. If you walk into a lender’s office overcommitted on debt, you’re starting on the back foot. But if you take steps to reduce it—even by a small amount—you give yourself a real shot at securing a mortgage on your terms.”
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