How Much Can I Borrow?

Before the search for your perfect first home can begin, you first need to find out how much you can borrow for a mortgage. This is not only because it will give you a clear idea as to the value of the properties that you should look at, but also because some estate agents won't allow you to view properties with them until they know that a lender is likely to provide you with a mortgage.

The amount that you can afford to borrow for your first time buyer mortgage (your 'affordability') is calculated based on several factors. After this has been calculated by a lender, you'll receive a free mortgage quote known as a Decision in Principle.

Below we'll explain more about how we calculate the amount we would be willing to lend you as a first time buyer, and other important things to know about your mortgage quote.

How your mortgage affordability is calculated

How much you can borrow for a mortgage on your first home is calculated based on the following factors:

  • How much you have for a deposit on your first home
  • Your income, or incomes if you are buying your first home with another person
  • Your regular monthly outgoings, including your regular commitments and household and lifestyle expenditure
  • Your employment status
  • The type of property that you're looking to buy

When you approach a mortgage lender such as Newcastle Building Society for a mortgage quote, you'll be asked to provide all the above information, so make sure you have it all together when you speak to us so that we can quickly and easily get you a Decision in Principle, or DIP. You can also get an idea of what size mortgage you could afford by using our simple online mortgage affordability calculator, although this is only for guidance and not a firm figure.

Using the information you give us on your income and monthly outgoings as an assessment, we'll give you a personalised mortgage quote in the form of a DIP, which will also tell you which type of mortgage deal would be best for you. It doesn't cost you anything to get a DIP from us, and we don't run any credit checks on you at this stage so you can obtain mortgage quotes from several lenders if you wish.

However, whilst Newcastle Building Society may have provided you with a DIP, it isn't a guarantee that we will provide you with a mortgage. You would then need to make a full mortgage application to us, based on which we would decide whether to make you a formal mortgage offer.

Need a Decision in Principle? Speak to one of our mortgage advisers

We're sure you will be excited to start looking for your first home, so call us on 0345 606 4488 to speak to one of our mortgage advisers about a mortgage quote, or book an appointment at your local Newcastle Building Society Branch now.

Don't forget to get together all the information we listed above on your income and outgoings, as well as how much you have for a mortgage deposit, so that we can provide you with a DIP - and then, your search for your first home can really begin!

Wherever you are on the journey to buying your first home, our first time buyers page includes links to all of the tools and guides you'll need - including a handy mortgage repayment calculator, which will give you an idea of how much your monthly repayments would be based on the value of the property you wish to buy. Take a look at our guides for first time buyers now and if you have any further questions, one of our mortgage advisers will be pleased to help you.

Your mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.