How to Spot a House You Can Actually Afford

Worried about over-stretching on your first home? Here’s how to spot a property you can truly afford.

Scrolling through property sites can make every house look tempting, but affordability is the factor that really matters. The truth is, falling for a property outside your budget can lead to disappointment — or worse, financial strain. So how do you know if a home is one you can actually afford?

Here are the signs to look out for before you commit.

Know your borrowing limit before you look

The easiest mistake is browsing homes before knowing your budget. An agreement in principle from a lender or broker gives you a clear ceiling, helping you avoid wasting time on properties out of reach.

Factor in your outgoings, not just income

Affordability isn’t just about how much you earn. Lenders consider commitments like loans, childcare, and credit cards. If your monthly spending is high, it reduces what you can borrow — even if your income is strong.

Don’t forget the extra costs

Your deposit isn’t the only upfront cost. You’ll also need money for legal fees, surveys, moving, and sometimes stamp duty. A property is only affordable if you can comfortably cover both the purchase price and these extras.

Check monthly repayments against your lifestyle

A house is affordable if you can keep up with repayments without sacrificing all of life’s other expenses. If mortgage payments would leave you struggling every month, it’s a red flag.

Think long-term, not just today

Affordability isn’t about the short term. Ask yourself if you could still manage payments if interest rates rise or your circumstances change. Future-proofing your decision is key.

The Bottom Line

A dream home is only a dream if it’s affordable. Knowing your true budget helps you focus on properties that fit your life without financial strain.

Your home may be repossessed if you do not keep up repayments on your mortgage or other loan secured against it.

• How do I know if a property is affordable for me?

  Start with an agreement in principle and review your outgoings alongside income.

• What extra costs should I budget for besides the deposit?

  Legal fees, surveys, moving costs, and possibly stamp duty.

• Should I consider future rate rises when calculating affordability?

  Yes. Rates may change and it’s important to stress-test your budget.