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If you’re aiming to spend £5,000 a month on your mortgage, understanding the borrowing potential and key factors that influence your options is crucial. Here’s a streamlined guide to making the most of your budget.
The amount you can borrow with £5,000 a month depends on factors like interest rates, the term length, your income, and financial commitments. Typically, at an interest rate of around 4% over 25 years, your budget might allow for a loan between £950,000 and £1 million. The exact figure depends on variables such as your credit score, the deposit amount, and lender criteria.
A mortgage affordability calculator is a handy tool to get a personalised estimate. By entering your income and financial details, you’ll gain a clearer picture of your borrowing capacity and affordability.
Use this calculator to determine how much you could potentially borrow for a mortgage, based on the typical salary multiples used by most UK lenders.
Your Results:
You could borrow up to
Most lenders would consider letting you borrow
This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders.
Some lenders would consider letting you borrow
This is based on 4.75 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender.
A minority of lenders would consider letting you borrow
This is based on 5.5 times your household income, a salary multiple you will struggle to get without a broker. 5.5 times salary mortgages are usually only available under very specific circumstances.
Get Started with an expert broker to find out exactly how much you could borrow.
Get StartedBy inputting the details, a mortgage affordability calculator can provide a tailored estimate of the maximum mortgage amount you might be able to secure.
The term length of your mortgage plays a crucial role in determining your monthly payments and the total amount you’ll repay over time. Here’s how different terms and rates can affect your monthly payment for a £5000 mortgage:
Term Length |
Interest Rate |
Mortgage Amount |
Monthly Payment |
10 years |
4% |
£493,851 |
£5000 |
5% |
£471,407 |
£5000 |
|
6% |
£450,367 |
£5000 |
|
15 years |
4% |
£675,961 |
£5000 |
5% |
£632,276 |
£5000 |
|
6% |
£592,518 |
£5000 |
|
20 years |
4% |
£825,109 |
£5000 |
5% |
£757,627 |
£5000 |
|
6% |
£697,902 |
£5000 |
|
25 years |
4% |
£947,262 |
£5000 |
5% |
£855,300 |
£5000 |
|
6% |
£776,034 |
£5000 |
|
30 years |
4% |
£1,047,306 |
£5000 |
5% |
£931,408 |
£5000 |
|
6% |
£833,958 |
£5000 |
|
35 years |
4% |
£1,129,242 |
£5000 |
5% |
£990,712 |
£5000 |
|
6% |
£876,901 |
£5000 |
The length of your mortgage term influences the total amount you could borrow and the total interest paid over the life of the loan, and these estimates can vary based on the specific terms offered by a lender, your financial circumstances, and other factors such as your credit score and the lender’s criteria.
Based on a mortgage of £300,000 at 75% LTV and 25 years Today’s best buy mortgages
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Mortgage broker like Ascot Mortgages can be invaluable in maximising your budget. We offer access to a wide pool of lenders and products, often securing deals not available directly to consumers. Here’s how they can assist:
Your deposit size directly impacts interest rates and your borrowing potential. A higher deposit lowers your loan-to-value (LTV) ratio, reducing risk for the lender and often leading to better rates and terms.
Get things moving, apply for a remortgage.
Free unbiased mortgage advice is just a phone call away.
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Legal
Ascot Mortgages authorised and regulated by the Financial Conduct Authority and can be found on the FCA register (www.fca.org.uk) under reference 776062. The FCA do not regulate some forms of mortgages. The guidance and advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate it will be £599 per mortgage account. Ascot Mortgages Ltd give you the option to pay a non-refundable fee of £1299 payable with the application. If this option is taken, Ascot Mortgages Ltd will refund any procuration fee received by the lender.
Ascot Mortgages Limited is registered in England and Wales and have their registered office at 8 Webster Court, Westbrook, Warrington, WA5 8WD. The company’s registration number is 06764971.
We are a credit broker, not a lender. We work with the whole of the lending market. We may receive commissions that will vary depending on the lender, product, or other permissible factors. The nature any commissions model will be confirmed to you before you proceed.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT
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