Borrowing
What house can I afford on a £25,000 salary?
On £25,000 a year, many lenders would lend around £112,500, which is 4.5 times your income. With a 5% deposit that reaches a home of about £118,000, or about £125,000 with 10% down.
| Deposit | Home | Monthly | Cash on day one |
|---|---|---|---|
| 5%£5,900 | £118,000 | £568 | £8,780 |
| 10%£12,500 | £125,000 | £570 | £15,400 |
| 15%£19,800 | £132,000 | £569 | £22,730 |
| 20%£28,000 | £140,000 | £567 | £30,960 |
Repayment mortgage at 4.5% over 30 years. Day one cash is the deposit plus fees, and Stamp Duty in England for a first-time buyer. Try your own rate and term
Against your take-home pay
£25,000 is about £1,793 a month after tax and National Insurance in England. The £570 mortgage with a 10% deposit would be about 32% of that, before bills and council tax.
Common questions
- How much can I borrow on £25,000?
- Many lenders lend around 4.5 times income, so about £112,500. Some go up to 5 times, about £125,000, for some buyers. Debts and other payments bring it down. Only a lender can say for sure.
- What would the mortgage cost a month?
- With a 10% deposit on about £125,000, a £112,500 repayment mortgage at 4.5% over 30 years is about £570 a month, before bills and council tax.
- How much cash do I need on day one?
- About £15,400 at that price with a 10% deposit: the £12,500 deposit plus legal fees, searches, a survey and moving. First-time buyers in England pay no Stamp Duty up to £300,000.
- What if I'm buying with someone?
- Lenders add your incomes together. Two people on £25,000 each is £50,000 between you, which reaches about £250,000 with a 10% deposit.
A guide, not a promise anyone will lend. Debts, other payments and your credit history change what a lender offers. Checked 2026-10-04.