Can You Comfortably Afford It?
Your estimated mortgage payment of £950/month is 37% of your take home pay (£2,573/month). Financial advisers typically recommend keeping housing costs below 30-35% of take home. This is stretching your budget — consider a lower price or larger deposit.
All Salary Levels
| Salary | Max Property | Mortgage | Monthly Payment |
|---|---|---|---|
| £20,000 | £100,000 | £90,000 | £500 |
| £25,000 | £125,000 | £112,500 | £625 |
| £28,000 | £140,000 | £126,000 | £700 |
| £30,000 | £150,000 | £135,000 | £750 |
| £32,000 | £160,000 | £144,000 | £800 |
| £35,000 | £175,000 | £157,500 | £875 |
| £38,000 | £190,000 | £171,000 | £950 |
| £40,000 | £200,000 | £180,000 | £1,000 |
| £42,000 | £210,000 | £189,000 | £1,051 |
| £45,000 | £225,000 | £202,500 | £1,126 |
| £50,000 | £250,000 | £225,000 | £1,251 |
| £55,000 | £275,000 | £247,500 | £1,376 |
| £60,000 | £300,000 | £270,000 | £1,501 |
| £65,000 | £325,000 | £292,500 | £1,626 |
| £70,000 | £350,000 | £315,000 | £1,751 |
| £75,000 | £375,000 | £337,500 | £1,876 |
| £80,000 | £400,000 | £360,000 | £2,001 |
| £90,000 | £450,000 | £405,000 | £2,251 |
| £100,000 | £500,000 | £450,000 | £2,501 |
Buying on a £38,000 Salary
On £38,000, you are comfortably above the national average. A budget of up to £190,000 makes homeownership realistic in the majority of UK cities and towns, with only London and parts of the South East remaining out of reach for detached homes.
Deposit Scenarios
The size of your deposit significantly affects both your mortgage rate and monthly payments. With a 5% deposit (£9,500), you will need a 95% LTV mortgage — these carry higher interest rates. A 10% deposit (£19,000) opens up better rates, while a 15% deposit (£28,500) gives you access to the most competitive deals on the market.
Stamp Duty and Buying Costs
As a first-time buyer purchasing under £300,000, you pay zero stamp duty — saving you thousands compared to moving home buyers. Budget an additional £2,000-£4,000 for solicitor fees, surveys, and other buying costs. At 38% of take home, your mortgage payment is high. A longer mortgage term (30 or 35 years instead of 25) would reduce monthly payments by £100-£150, though you would pay more interest overall.
Where to Buy on £38,000
This budget gets you a three-bedroom property in many Northern and Midlands towns, and a two-bedroom flat in cities like Bristol, Edinburgh, and Manchester city centre. For your detailed take home pay breakdown, see £38,000 salary after tax.
See your full take home pay breakdown
£38,000 salary after tax →