How to get a £270,000 mortgage: eligibility, deposit & repayments (first-time buyers)

Buying your first home is exciting—but a mortgage of £270,000 can bring extra scrutiny from lenders. Eligibility usually comes down to a combination of income, outgoings, deposit, credit history, and the property you’re buying.

This guide explains the main factors that influence whether a £270,000 mortgage is likely to be considered, how deposit levels can affect your options, and how repayments are assessed.

What affects your eligibility for a £270,000 mortgage?

Mortgage lenders don’t lend based on the loan amount alone. They assess whether they’re comfortable with both affordability and risk.

Key factors commonly include:

• Income and stability: salary, overtime, bonuses, commission, or evidence of consistent earnings.
• Monthly outgoings: existing credit commitments, childcare costs, maintenance, and other regular spending.
• Deposit size: larger deposits can broaden lender choice and may improve the overall risk profile.
• Credit history: how you’ve managed credit, including any missed payments.
• Your age and mortgage term: many lenders have maximum ages at the end of the mortgage term.
• Property type and condition: standard residential properties tend to be easier than non-standard builds.
• Mortgage structure: repayment vs interest-only (most first-time buyers choose repayment).

Even if you can borrow the amount you want in principle, lenders still need to be satisfied that your monthly payments fit comfortably alongside your other commitments.

How lenders assess affordability for a £270,000 mortgage

Affordability is usually about disposable income—the money left after meeting your regular financial commitments.

In practice, lenders typically consider:

• your monthly income
• your monthly expenditure
• your current debts
• the mortgage payment you’d be expected to make

Because affordability models vary by lender, two people with the same gross income can receive different outcomes depending on their outgoings, deposit, and credit profile.

Why affordability matters more than income multiples

Many lenders use income multiples as a starting point, but the final decision is often driven by whether the mortgage payment is affordable alongside everything else you pay for each month.

If your outgoings are high relative to your income, a lender may decide the mortgage isn’t affordable even if the income multiple looks workable.

Keeping your finances “mortgage-ready”

In the months leading up to an application, lenders generally expect your finances to be stable. Changes that can reduce affordability or raise risk may include:

• taking on new credit commitments
• increasing credit card balances
• missed payments
• large, unexplained changes in spending

How much deposit do you need for a £270,000 mortgage?

Deposit size can influence both how many lenders will consider you and the type of mortgage products available.

For a £270,000 purchase, the deposit amount depends on the percentage you put down (before considering other buying costs such as solicitors’ fees, surveys, and stamp duty).

Note: the deposit percentages below are illustrative examples to help you understand the cash needed at different LTVs. Actual lender requirements vary.

Can you get a £270,000 mortgage with a 5% deposit?

A 5% deposit can reduce the upfront cash needed, but higher loan-to-value (LTV) mortgages are often more limited and may come with stricter underwriting.

If you’re aiming for a higher LTV, it’s particularly important that your monthly budget is robust and your credit file is in good order.

What a higher deposit can change

With a larger deposit, you may:

• have access to a wider range of lenders
• find options that better match your circumstances
• reduce the lender’s perceived risk

How repayments are assessed for a £270,000 mortgage

Repayments depend on several variables, including:

• the interest rate
• the term (for example, 25 or 30 years)
• whether it’s repayment or interest-only
• any product fees and how they’re structured

Most lenders focus on whether the mortgage payment is affordable in your overall budget. That means you should consider not only the monthly payment, but also:

• utility bills and council tax
• commuting and childcare costs
• existing debts
• any likely changes to spending over the mortgage term

Stress-testing your budget

A practical approach is to estimate repayments conservatively and check that you’d still be comfortable if your day-to-day costs rise.

Even if a mortgage payment looks manageable at the start, lenders want to see that it remains affordable when affordability is assessed alongside your other commitments.

Can self-employed first-time buyers get a £270,000 mortgage?

Self-employed applicants can qualify for mortgages, but lenders usually require strong evidence of income because earnings can fluctuate.

What lenders often look for includes:

• consistent trading history
• clear accounts and tax records
• evidence that income is likely to continue

Typical documents lenders may request

Requirements vary, but self-employed borrowers are commonly asked for evidence such as:

• SA302 forms
• certified accounts (often covering multiple years)
• HMRC tax year overviews

If your income has changed significantly year to year, lenders may take a cautious view when assessing affordability.

The affordability angle

Even if your business turnover looks strong, lenders assess what you can realistically afford based on your take-home position and the costs of running the business.

If you’re preparing to apply, it can help to ensure your accounts and tax records are up to date and consistent with your mortgage application.

I have bad credit: can I still get a £270,000 mortgage?

Bad credit doesn’t automatically rule out a mortgage, but it can limit lender choice and may make affordability and deposit requirements more demanding.

Lenders may consider issues such as:

• missed payments
• defaults
• CCJs
• IVAs
• bankruptcy

Timing and severity matter

The impact of adverse credit often depends on:

• how recent the issue is
• how severe it was
• whether you’ve demonstrated improved behaviour since

Why applications can be declined

A mortgage application may be declined if a lender decides either:

• the credit risk is too high, or
• the mortgage isn’t affordable based on your circumstances

If you’re concerned about your credit file, it’s usually sensible to understand how your situation is likely to be viewed before you apply.

Putting it together: a checklist for a £270,000 first-time buyer mortgage

Before you apply, it helps to gather the information lenders typically assess and stress-test your affordability.

Consider:

• Deposit: how much you have and whether it’s flexible
• Income evidence: payslips for employed borrowers, or tax/account records for self-employed applicants
• Outgoings: a clear picture of monthly commitments
• Credit history: any issues that could affect lender decisions
• Mortgage term: choosing a term that keeps repayments manageable
• Property details: ensuring the property is suitable for mainstream lending

Related first-time buyer guides

• Mortgage guarantee scheme explained
• How can I get approved for a £330,000 mortgage?
• What to do if your mortgage offer expires before completion
• What is a gifted deposit and how do they work?
• Can I get a 90% LTV mortgage after Covid-19?
• Is now the right time to buy a house as a first time buyer?
• How to get the best £260,000 mortgage deal
• Multiple applicant mortgages explained
• What is a Joint Borrower Sole Proprietor (JBSP) Mortgage?
• Key Worker Mortgage Schemes