Mortgages for £1,500 to £1,700 per month

This guide covers what you can expect your mortgage to look like with a monthly repayment of around £1,500. You’ll also learn how affordability is calculated and the steps you can take to lock in the best deal.

How much mortgage can you get for approximately £1,500 per month?

It’s always helpful to get a visual idea of what your mortgage payments could look like. So, we’re going to run through a few different examples showing how much you can potentially borrow.

These calculations are based on various monthly payment levels, including £1,400, £1,500, £1,600 and £1,700 per month, for a 25-year term and a 10% deposit.

£1,400

You could potentially borrow from £217,300 to £251,800 depending on the interest rate.

£1,500

For £1,500 per month, you could borrow between £232,800 to £284,100.

£1,600

£1,600 per month could mean you might be able to borrow from £248,300 to £303,200.

£1,700

Paying £,1700 monthly could mean a total borrowing amount of between £263,800 to £322,000.

As you can see, there’s plenty of variety available. If you tweak these calculations based on different terms or deposits you’ll get a different set of outcomes for the monthly payment. So, it’s crucial you deal with a lender who can set you up with the best repayment plan based on your situation.

If your monthly budget is slightly different or you’d like to see what a different interest rate looks like, use the calculator below

How your affordability is calculated

Although plenty of metrics can indirectly affect mortgage affordability, a key – direct – measure will be income multiples based on your salary or earnings. Each lender will have its own methods and rules, but how much your income and outgoings are the main factors.

The income multiples used by lenders can vary quite a lot. Most will offer a mortgage based on roughly 3 or 4 times your yearly gross income. However, some lenders will extend this income multiple to 5 times your salary, and a small few will even consider 6 times your salary.

If you need to go beyond 6 times your salary, some lenders will permit multiple sources of income, which can be important if you’re self-employed. Taking into account your whole income is a great way to make a bigger mortgage more realistic.

Use the mortgage affordability calculator below to get a clearer idea of how much you could potentially borrow based on standard income multiples.

What type of mortgage can you get?

The types of mortgage you can get will primarily depend upon your needs and also what the lender will be assessing. Once everything has been considered, you could be eligible for these mortgages:

• Commercial
• Buy to let
• Repayment
• Interest only

Remember, the amount you can afford to spend each month doesn’t necessarily dictate how much you can borrow with a mortgage.

Other factors that could impact how much you can borrow

The areas outlined below will all be considered in detail by a lender when you submit an application and, therefore, could indirectly impact your chances of borrowing the amount you need for your budget.

Your Deposit and Loan-to-value (LTV)

This will make a big impact on how far your £1,500 per month can stretch but won’t really impact the maximum borrowing amount allowed from lenders as the affordability assessment will only focus on your annual income and outgoings.

If you put down a larger deposit, this naturally reduces the size of the mortgage. Borrowing a smaller sum can reduce your monthly payments. And, a larger deposit also reduces your loan-to-value (LTV) ratio which can give you more borrowing options or better rates as a wider group of lenders will consider your application.

So, the size of your deposit can make monthly payments more realistic if you’ve got a smaller loan and a lower interest rate.

Your credit score

When looking at your application, your credit score will influence how many lenders are willing to consider your application. The more lenders you have in your favour, the better chance you have of getting the approval you need. Ideally, it’s best to download all your credit reports before applying.

This way you can check the results with your broker and get some sound advice on where to make improvements, making sure lenders view you in the best light. If you’ve got some credit issues, the brokers we work with have plenty of experience securing mortgages for bad credit applicants.

Type of property

Whether the house is a normal build or a non-standard construction can directly alter your choice of lenders and, as a result, your chances of getting the mortgage you want could be reduced. However, some specialist lenders focus solely on this area and an experienced broker would know who they are.

Get matched with a dedicated mortgage broker for your budget

Using a skilled broker who’ll find you a lender willing to provide the best terms and rates is the best way to maximise your opportunities, especially if you have a set budget in mind per month.

We offer a free, broker-matching service. This means we’ll quickly assess your needs, and then pair you up with an expert broker. One who’ll be able to find you a top solution for your circumstances and budget.

Just call 0808 189 2301 or make an enquiry. We’ll set up a free, no-obligation chat between you and an experienced local advisor today.