Higher chance of approval 
£400 – £500 a Month Mortgages
Get the right advice here and find out how to get the best rate
Author: Pete Mugleston
Mortgage Advisor, MD
Reviewer: Jon Nixon
Director of Distribution
How we reviewed this article:
Our experts continuously monitor changes in the financial space and work closely with qualified mortgage advisors for factual verification.
We’ll show all the details you need to know about getting a mortgage for £400 – £500 per month. Along with finding out how much you can borrow, we’ll also explain how to get the best rates and make your money go further.
What size mortgage can you get for £400 – £500 per month?
If you were to secure a rate of 4.5% over 25 years, you could borrow up to £89,955 on a repayment mortgage at £500 per month. However, there are lots of permutations involving the rate, mortgage term and type.
The following tables show potential mortgage sizes based on these monthly repayments:
£350 a month
| Interest rate | Deposit | Term Length | Mortgage amount |
| 4.5% | 10% | 25 years | £62,969 |
| 5% | 10% | 25 years | £59,871 |
| 5.5% | 10% | 25 years | £56,995 |
| 6% | 10% | 25 years | £54,322 |
£400 a month
| Interest rate | Deposit | Term Length | Mortgage amount |
| 4.5% | 10% | 25 years | £71,964 |
| 5% | 10% | 25 years | £67,424 |
| 5.5% | 10% | 25 years | £65,137 |
| 6% | 10% | 25 years | £62,083 |
£450 a month
| Interest rate | Deposit | Term Length | Mortgage amount |
| 4.5% | 10% | 25 years | £80,960 |
| 5% | 10% | 25 years | £76,977 |
| 5.5% | 10% | 25 years | £73,279 |
| 6% | 10% | 25 years | £69,843 |
£500 a month
| Interest rate | Deposit | Term Length | Mortgage amount |
| 4.5% | 10% | 25 years | £89,955 |
| 5% | 10% | 25 years | £85,530 |
| 5.5% | 10% | 25 years | £81,422 |
| 6% | 10% | 25 years | £77,603 |
Get started with an expert on mortgages you could get for £500 a month
Calculate your maximum borrowing
Maximum mortgage borrowing is not based on the set amount you’ve budgeted for mortgage payments – in this case, £400 – £500 per month. Lenders usually calculate this based on an income of your annual salary, unusually up to 4.5 times your wage, but sometimes more.
You can work out your maximum borrowing using our affordability calculator below.
Mortgage Affordability Calculator
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 5 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 6 times your household income, a salary multiple you will struggle to get without a broker. Six-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 StartedImportant: Any online mortgage calculator can only ever provide you with a rough guide on the amount you can potentially borrow. Once you’ve got your estimate, make an enquiry and we’ll set up a free, no-obligation chat with a broker who can calculate the exact mortgage amount you’d be eligible for, based on a bespoke assessment of your circumstances.
Factors that impact what mortgage you can get
Knowing what factors affect your ability to get a mortgage with your required repayment can help you stretch that payment further, perhaps meaning you can borrow more.
Rate
The interest rate can be hugely influential on the amount you can borrow. For example, in the case of a £500 per month mortgage, you could borrow over £20,000 more with an interest rate of 4.5%, versus 6%, over 25 years.
Deposit and LTV
Generally speaking, the higher your deposit, the more mortgage lenders and products you’ll have access to. Many require 10% as a minimum, though some may accept 5%. However, if you are trying to keep your payments at £400 – £500, a higher deposit may mean you have to borrow less, equating to a lower repayment amount.
Additionally, lenders often offer lower interest rates on mortgages with higher deposits and with a better loan-to-value ratio, making your monthly repayment stretch further.
Term length
The longer your term length, the lower your monthly repayments will be. Usually, mortgages attract 25-year terms, but some lenders will go to 30 while some may even go to 40.
Do remember, that while lengthening your term may reduce your monthly repayments, you will end up paying more interest throughout your mortgage.
In the case of a £450 per month mortgage, see how the term length can result in a swing of over £50,000 using the rates below.
| Monthly repayment | Interest rate | Deposit | Term Length | Potential mortgage amount |
| £450 | 5% | 10% | 10 years | £42,427 |
| £450 | 5% | 10% | 20 years | £68,186 |
| £450 | 5% | 10% | 30 years | £83,827 |
| £450 | 5% | 10% | 40 years | £93,323 |
Mortgage type
Different mortgage types have different terms and conditions – such as interest rates, required deposit amounts and income sources. For that reason, you may find that you have to borrow less with some types – perhaps as you are only offered a higher, more expensive rate or a shorter term. For example, buy-to-let mortgages typically attract higher interest rates than traditional repayment mortgages.
You could also potentially borrow more if you’re spending £500 per month on an interest-only mortgage, as your repayments will only cover the interest element of the mortgage.
Credit history
Your credit history will always be investigated with a mortgage application. You may still be able to secure a mortgage with bad credit, but you may find that you are offered a higher interest rate. Consequently, to keep your repayments at £400 – £500 a month, you may have to borrow a lower amount.
Get matched with an expert advisor specialising in smaller mortgages
If you’ve got a limited budget of roughly £500 per month, using an experienced broker is the best way to increase your range of mortgage options.
We offer a free, broker-matching service. This means we’ll quickly assess your budget and needs, and then pair you up with an expert broker.
Just call 0808 189 2301 or make an enquiry. We’ll set up a free, no-obligation chat between you and your ideal mortgage broker.
FAQs
Yes, this is definitely possible. Most buy-to-let (BTL) mortgages are on an interest-only basis but your maximum borrowing for this type of property will be based on projected rental income.
This can make sense if your lender doesn’t penalise you for overpayment. Speaking to an experienced broker is the best way to assess your mortgage deal and calculate if it makes sense to pay an extra £500 a month. If not, they can help you come to another solution that you’re happy with.
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About the author
Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.
Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!
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