Quick Answer
Average property prices in London are around £520,000. Most buyers need a 10–25% deposit. Use our mortgage calculator to check your monthly repayments.
- Benchmark total cost over the fixed period — rate plus fees, not headline rate alone
- Loan-to-value bands (95/90/85/80/75%) drive pricing — check the nearest band boundary
- Start remortgage shopping up to 6 months before your fix ends — you can lock now and switch if rates fall
- Get a soft-search decision in principle first — it costs nothing and reveals problems early
Insider Notes
Get your decision in principle before falling in love with a property. It's a soft-search estimate of your borrowing power that estate agents increasingly require before viewings, and it surfaces problems months before they can derail a purchase.
Affordability rules changed materially after the 2022–23 rate cycle. Lenders now stress-test your payments at a rate above your actual deal, and regular commitments — car finance, childcare, even subscriptions — reduce the maximum loan. Trimming commitments 3 months before applying genuinely increases what you can borrow.
Mortgages in London
Buying a home in London? This guide covers everything you need to know about getting a mortgage, from local average house prices to the best lenders available to London buyers.
Average House Prices in London
According to the ONS House Price Index, the average property price in London is approximately £520,000. Prices vary significantly by area, property type, and condition.
| Property Type | Avg Price | Min Deposit (10%) |
|---|---|---|
| Flat / Apartment | See Rightmove | Check monthly |
| Terraced House | See Rightmove | Check monthly |
| Semi-Detached | See Rightmove | Check monthly |
| Detached | See Rightmove | Check monthly |
Getting a Mortgage in London
The mortgage process in London is the same as anywhere in England/Wales/Scotland. You'll need to:
- Check your credit score at Experian or CheckMyFile
- Get an Agreement in Principle (AIP) from a lender
- Find a property and make an offer
- Submit your full mortgage application
- Receive your mortgage offer and complete
First Time Buyers in London
If you're a first-time buyer in London, you may qualify for the Help to Buy scheme, Lifetime ISA, or Shared Ownership. First-time buyers also pay reduced stamp duty.
Bad Credit Mortgages in London
Have a CCJ, IVA, or missed payments? Specialist lenders including Precise Mortgages, Aldermore, and Pepper Money offer bad credit mortgages across London and the UK. You'll likely need a larger deposit (15–25%).
Calculate Your London Mortgage
Use our free mortgage calculator to estimate monthly payments based on property prices in London. Our stamp duty calculator will show your tax bill.
Related Guides
Frequently Asked Questions
Almost all fixed deals allow 10% overpayment per year without penalty. Even £100 a month can cut years off a 25-year term.
A decision in principle usually uses a soft check, which leaves no mark on your score. The full application is a hard check — which is why you should pick your lender before applying, not after.
Lenders cap borrowing at 4.49x income for most applicants. Some banks stretch to 5.5x for qualifying professions or joint incomes over £60,000.
Most lenders require at least 5–10% of the property price. Rates improve sharply once you pass 15–20% — the biggest pricing jumps happen at 90%, 85% and 75% loan-to-value.
You move to the lender's standard variable rate, which is almost always worse value. Most lenders let you lock a new deal up to 6 months ahead.
Most offers are valid for 3–6 months. New-build purchases often get extended validity because completion dates slip.
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