What size mortgage can you get for £400-£500 per month?
As there’s so many factors that can influence the mortgage you’re offered it’s difficult to give one definitive answer to this question. In fact, mortgage lender is usually based primarily on a multiple of your income, rather than an amount you have budgeted for monthly payments.
Obtaining an agreement in principle before you start looking for a property will be particularly helpful if you’re on a fairly tight budget.
Whatever your budget, a mortgage broker will be able to recommend ways to make the most of your target amount, helping your search to find a suitable property.
In order to demonstrate how much you may be able to borrow for a mortgage within this budget range, each of the below examples assumes that:
- You take a standard repayment mortgage
- The mortgage term is 25 years
- The interest rate is 2.5%
- You have provided a 10% deposit
Monthly repayments of approximately £400 – could get you around £75,000
Monthly repayments of approximately £450 – could get you around £82,000
Monthly repayments of approximately £500 – could get you around £91,000
Aside from the assumptions we’ve made above, your own personal circ*mstances also affect how much you can borrow, so these figures are for demonstration purposes only.
Calculate your maximum borrowing
Try out mortgage affordability calculator below to work out how much you could borrow based on the typical income multiples that mortgage lenders use.
How interest rates and terms impact your repayments
These tables demonstrate how much your mortgage payments might vary depending on the term length and interest rate. These examples have been tailored to borrowers who have budgeted between £400 and £500 per month for their monthly repayments.
£400 per month
| Term | 2.5% | 3% | 4% |
| 15 years | £55,000 | £53,000 | £50,000 |
| 20 years | £65,000 | £63,000 | £57,000 |
| 30 years | £79,000 | £74,000 | £67,000 |
£450 per month
| Term | 2.5% | 3% | 4% |
| 15 years | £62,000 | £60,000 | £56,000 |
| 20 years | £73,000 | £70,000 | £65,000 |
| 30 years | £89,000 | £84,000 | £75,000 |
£500 per month
| Term | 2.5% | 3% | 4% |
| 15 years | £68,000 | £66,000 | £62,000 |
| 20 years | £81,000 | £78,000 | £72,000 |
| 30 years | £98,000 | £93,000 | £84,000 |
*Interest rates vary from lender to lender and could be higher or lower than shown in the table. Typical rates are purely for example purposes and may not be representative of what is currently available on the market.
How a broker can help
As you can see, there are a great number of factors that can affect how much you could potentially borrow and what your repayments could be, regardless of your budget. Whether you’re looking to pay £400 or £500 per month, a mortgage broker will be able to look at your full circ*mstances alongside the entire market of lenders and products available, in order to maximise the level of borrowing you can get with your budget.
We work with a large network of expert mortgage brokers, many of whom specialise in certain niches within the mortgage market. For example, if you’re concerned about getting a mortgage because you’re self-employed, slightly older, or even have bad credit, we’ll be able to match you with a specialist adviser that will be able to help you find a suitable lender for your circ*mstances.
How to make the most of your budget
The more you earn, the more you can borrow but your mortgage eligibility also impacts this by affecting the range of deals you qualify for. With that being said, the cost of property in the UK continues to rise, and it may still be difficult to buy the home of your dreams with a budget of £400-£500 per month.
The good news is, there are a range of home ownership schemes that you could use to increase the options available to you.
The First Homes Scheme
With this scheme key workers and first time buyers can get properties for at least 30% (and up to 50%) less than the local market value. You could, therefore, potentially buy a home valued at £100,000* with £70,000 or less, making it much more achievable with a budget of £400-£500 per month.
Whilst developments are only available in certain parts of England at the moment, the number of first homes properties is expected to increase significantly in the coming years. More information can be found on the government’s official website.
*Please note actual house prices will vary depending on type and location.
The Shared Ownership Scheme
This scheme allows applicants with a smaller budget to purchase a percentage of their home (between 10-75%) in order to get a more expensive property than the mortgage they’re able to obtain.
Ownership of the property can be increased in increments as little as 1% at a time until you own the whole property if you wish. Remember to factor in that you’ll pay rent to the housing association that owns the remaining share of your home. More information about the Shared Ownership scheme can be found in our standalone guide.
Get matched with an expert in lower mortgages
The brokers we work with will consider all of your circ*mstances and make recommendations on the best mortgage options available to you, whatever your budget. They all offer an initial discussion for free. Find out how their knowledge, experience, and access to specialist products could help to get you the best deal available!
Simply contact us on 0808 189 0463 or via this form, and we’ll match you with one of the expert brokers that we work with straight away.
