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Securing a mortgage that fits within a budget of £400 to £500 per month can seem daunting, but it is indeed possible. Understanding what mortgage you can get for £500 a month or even for £400 a month involves several factors, including your income, credit score, and the property you wish to purchase. In this guide, we’ll walk you through everything you need to know about obtaining a mortgage within this budget range in the UK.
The size of the mortgage you can afford with monthly payments of £400 to £500 depends on several key factors including the interest rate, term length, and your financial situation. Typically, the higher your deposit and income, the more favourable the mortgage deal you can secure. Here’s a breakdown of what you might expect:
Monthly Payment | Interest Rate | Term Length | Mortgage Amount |
£350 a Month | 4.5% | 25 years | £62,969 |
5% | 25 years | £59,871 | |
5.5% | 25 years | £56,995 | |
6% | 25 years | £54,322 | |
£400 a Month | 4.5% | 25 years | £71,964 |
5% | 25 years | £68,424 | |
5.5% | 25 years | £65,137 | |
6% | 25 years | £62,083 | |
£450 a Month | 4.5% | 25 years | £80,960 |
5% | 25 years | £76,977 | |
5.5% | 25 years | £73,279 | |
6% | 25 years | £69,843 | |
£500 a Month | 4.5% | 25 years | £89,955 |
5% | 25 years | £85,530 | |
5.5% | 25 years | £81,422 | |
6% | 25 years | £77,603 |
*This table reflects the mortgage amounts with monthly payments, different interest rates, and a 25-year term length.
The table shows the potential increase in mortgage borrowing the more the monthly payment increases, 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.
Using a mortgage affordability calculator can give you a precise estimate of what you can afford based on your income, outgoings, and deposits. It’s an essential tool for anyone considering a mortgage. By entering these details, the calculator can provide an estimate of the maximum mortgage amount you can borrow.
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 StartedFactors that have a direct impact on your mortgage borrowing include your income, deposit amount, credit score, and current interest rates. Lenders will assess these to determine how much they are willing to lend you.
Other factors indirectly affecting your borrowing capacity might include your employment stability, the type of property you are purchasing, and even broader economic conditions.
Working with a mortgage broker can help you find the best deals available. Brokers have access to a wide range of mortgage products and can offer professional advice tailored to your financial situation.
Knowing what mortgage you can get for £500 a month or £400 a month involves understanding your financial position and leveraging tools like mortgage calculators. By assessing factors like income, deposit, and interest rates, a broker can identify the best mortgage deal for your circumstances.
Consulting with a mortgage broker like Ascot Mortgages can further streamline this process, ensuring you receive expert advice tailored to your needs. With careful planning and the right support, home ownership within your budget is achievable.
Based on a mortgage of £300,000 at 75% LTV and 25 years Today’s best buy mortgages
Latest mortgage best buys
See all mortgage best buysSpeak with Us Interest Rate Mortgage Type Monthly Repayment Amount Total Fees Max LTV 3.79% Fixed £1,174 £30 75% 4.09% Fixed £1,198 £0 75% 4.12% Fixed £1,210 £1,499 75% 4.24% Fixed £1,224 £1,025 75%
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Paying extra each month on your mortgage can significantly reduce the term and the total interest paid. It’s a strategy worth considering if you can afford the additional payments without compromising your financial stability. Please refer to your mortgage terms and conditions or speak to a mortgage broker to understand any overpayment limits and potential fees that may be incurred if you go above this limit.
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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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