Can a 28-year-old on £35,000 really afford a home in London? See how much YOU can borrow

Thousands of homebuyers are at risk of losing cheap mortgage rates Credit: Getty RISING property prices, high mortgage rates, and the cost of living have left many young professionals wondering whether buying a home is still achievable. So, can a 28-year-old earning an average salary of £35,000 realistically afford a mortgage in London? Has living in London in your late 20s left you wondering whether you’ll ever get on the property ladder? We reveal the catches – and how to still make it happen Credit: Alamy The short answer is yes – but with significant catches. Understanding how much you can borrow, hidden buying costs and setting realistic goals are all key factors to consider as a first-time buyer in London. Sign up for the First Time Buyer Guide newsletter Thank you! As an expert from the Mortgage Advice Bureau explains: “The narrative for 28-year-olds in London often feels like a closed door, but headline prices don’t tell the whole story. “Between 5.5x income multiplier products and specialist first-time buyer schemes, affordability is often more about structuring the application correctly than just waiting for prices to fall. “The biggest hurdle usually isn’t just the market, it’s navigating deposits, income calculations, and hidden upfront costs.” Let’s dive into those catches in more detail. How much can you borrow? Most mortgage lenders will offer between four and five times your annual salary, although some lenders may go higher depending on your circumstances. On a salary of 35,000, this means you could typically borrow: Most read in Money 4x salary = £140,000 4.5x salary = £157,500 5x salary = £175,000 Even at the upper end, this borrowing amount is well below the average London property price of £545,000, compared to the UK average of £271,000, according to Land Registry data. Student loans don’t automatically stop you from getting a mortgage. But lenders do generally look at your income, monthly repayments and overall affordability rather than the total balance owed. Speaking with a qualified mortgage adviser can also help you understand which products may suit your circumstances. A regulated broker acts as your safeguard, especially when dealing with complex bank rules. Expert advice from qualified advisers backed by official consumer protection standards gives you peace of mind from your first rate check right through to key day. How much deposit do you need for a mortgage? Your deposit plays a huge role in determining what you can actually buy. For example, let’s say you can get a mortgage at 4.5 times your income, meaning you can borrow £157,500. Then imagine you have a 10% deposit of £17,500, so your total buying budget is £175,000 – £370,000 under the average London price. Saving a larger deposit can increase your options, but even with a 20% deposit, affordability remains a challenge in many parts of London. Mortgage affordability and hidden costs It’s also important to calculate your monthly costs before submitting a mortgage application to ensure you’re not leaving yourself stretched too thin. Let’s assume the following: Property price: £175,000 Deposit: £17,500 (10%) Mortgage: £157,000 Interest rate: 5% Mortgage term: 30 years This means your monthly repayments would be approximately £845 per month. After tax and National Insurance, someone earning £35,000 typically takes home around £2,300 per month, leaving just over £1,455 for other bills, transport, food as well as savings or investments. Most lenders will also assess your existing financial commitments, such as debt repayments or dependents, before approving your mortgage. There are also additional costs to consider as a first-time buyer. You will need a budget around £3,000 to £5,000 for solicitor fees, mortgage arrangement fees, surveys, building insurance and moving costs. Not to mention other fees such as service charges and ground rent if you’re buying a leasehold property, and your first month’s council tax and utility bills. Start by understanding your budget, saving a deposit and comparing mortgage options before your application. Speak to a qualified adviser from Mortgage Advice Bureau What can you actually buy? Plus cheapest areas outside London While central London is largely unaffordable on a single £35,000 income, there are still opportunities in other parts of the capital. A budget of around £175,000 may allow you to purchase: A studio apartment in outer London – areas include Croydon, Thornton Heath, and Greenford A shared ownership property – homes for sale include one-bed flats in Royal Docks and Islington Purchase in a nearby commuter town, such as Stevenage, Luton, and Chatham (21 mins by train to central London) A fixer-upper in certain boroughs, but you’d have to be wary of extra costs Considering leaving London altogether? Here’s what properties cost elsewhere in the UK… East Midlands – £241,000 East of England – £338,000 North East – £164,000 North West – £220,000 South East – £381,000 South West – £303,000 West Midlands – £248,000 Yorkshire and the Humber – £209,000 * Source: Land Registry The cheapest properties can be found in the north east, covering cities such as Newcastle, Sunderland and Middlesbrough. While Yorkshire and the Humber come in second with an average £209,000 property price, including places such as Leeds, Sheffield and Hull. How you can improve mortgage affordability If buying alone feels difficult or you can’t get a home in your dream location within your budget, there are a few strategies to boost your budget. Get a 5.5 income multiplier mortgage A 5.5 income multiplier mortgage allows eligible buyers to borrow up to 5.5 times their annual salary (or joint household income), compared to the standard market cap of around 4.5 times income. This boosts a buyer’s purchasing power by up to 20%–22%, helping bridge the affordability gap in higher-priced areas like London. Shared ownership Shared ownership allows buyers to purchase a percentage of a property while paying rent on the remaining share. This significantly lowers the initial deposit and mortgage required. But you’ll usually need to pay ground rent and service charges, and you’re also still considered a tenant with a landlord. Buy with a partner or friend Two salaries dramatically increase borrowing power. For example, two buyers earning £35,000 each could potentially borrow more than £330,000, opening up far more of the London market. Lifetime ISA (LISA) If you’re eligible, a Lifetime ISA offers a 25% government bonus on savings of up to £4,000 each year. Over several years, this can make a meaningful contribution towards your deposit. However, you’ll be hit with a fee if you use the money for anything other than a first home (or retirement), meaning you’ll effectively lose 6.25% of what you contributed plus the government bonus. Future buyers should also be aware of upcoming changes to the scheme. We have revealed how the Lifetime ISA could be scrapped as part of a major first-time buyer overhaul, and outlined where to put your cash if the Lifetime ISA gets the chop. So, is it realistic? For a 28-year-old earning £35,000, buying a home in London isn’t impossible… but it does require realistic expectations. You’ll likely need to compromise on location, property size or ownership structure. Careful financial planning, disciplined saving, and understanding your mortgage options can make a significant difference. Shared ownership, a larger deposit, or buying with someone else can all make homeownership much more achievable – but you may not find your forever home on the first go. The good news is that many first-time buyers begin with a modest property before moving up the ladder as their income and equity grow. Comment now