How to Work Out What Price House You Can Afford
A clear, repeatable process makes it easier to set a property budget. Follow the steps below and use the HouseBudget Calculator to test scenarios until the numbers feel comfortable.
1) Gather your key inputs
- Monthly take-home pay for all applicants.
- Regular debt repayments, childcare costs or other commitments.
- Deposit amount available and any planned additions before completion.
- Interest rate you expect to get and the term length you prefer.
2) Turn income into a safe monthly payment
- Open the calculator and enter income, debts, rate and term.
- Choose a housing percentage that still leaves savings and lifestyle room.
- Note the suggested monthly payment and check the stress-rate figure to keep a buffer.
3) Convert the payment into a property price
- Use the calculator’s results to see the mortgage size that fits your payment.
- Add your deposit to estimate a target purchase price.
- Compare that to a lender-style income multiple (for example 4–4.5x) to confirm it aligns.
4) Adjust the plan if needed
- Increase deposit or extend the term modestly to lower payments.
- Reduce the target price to hit a lower LTV band or improve monthly breathing room.
- Revisit debts and spending to free up more capacity for housing.
Repeat the steps until you have a price range that works in the HouseBudget Calculator and feels affordable in real life. Going into viewings with that range will help you move faster and negotiate with confidence.