66 . 7 %
Mortgages and Furlough: How to get a mortgage after being on furlough. Read more Chevron

By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 4th December 2020*

If you’re looking for a mortgage and can afford to pay around £1,200 a month for it,  then you’ve probably thought about how much you could borrow from a lender and what your mortgage term may be. 

Getting a good deal with a competitive interest rate could save you thousands, which is why borrowers are always encouraged to speak with a qualified and experienced mortgage advisor to gain more certainty over their potential budget. For an initial guide to see what you could afford if you have £1,200 to spend on a monthly mortgage, this article may help. 

We’ll be looking at the following:

We’ll find the perfect mortgage broker for you - for free

Save time and money with an expert mortgage broker who specialises in cases like yours

  • We've helped over 120,000 get the right advice
  • Our form only takes a minute, then let us do the hard work
  • Save up to £400 per year with the right advice (source: FCA)
  • All the brokers we work with have whole of market access

How much of a mortgage can I afford to borrow if I repay £1,200 a month?

If you’re working out a budget based on your ability to afford monthly mortgage repayments of £1,200 per month, then you should find you’re in a pretty good position. Of course, the maximum price you can pay for a home doesn’t just depend on how much you can pay each month.

Other details that affect how much you can spend on a home of your own include:

  • The size of your deposit
  • The mortgage interest rates available
  • The loan-to-value (LTV) ratio
  • How long you agree your mortgage term for
  • Your credit history
  • Your earnings
  • Any existing debts you have

If you have some deposit, even if it’s just 5-10% of the value of the property, you should be able to secure a mortgage. With the ability to repay £1,200 per month, good credit history and a deposit of £10,000, you might be able to borrow £190,000, which would allow you to buy a home worth £200,000.

But, if you have a smaller deposit and a poor credit history, you could only gain a mortgage with a higher rate of interest. That may reduce the amount you could borrow.

Of course, with so many mortgage products available and a wide variety of different elements used by lenders to set their lending limits for you, if you would like a clearer idea of how much you can borrow to buy a home, speak with an experienced mortgage advisor.

They could help you understand what your maximum mortgage might be if you pay £1,200 a month. If you would like a larger mortgage, they can also give you ideas of what steps to take to make that possible.

Make an enquiry and we’ll put you in touch with the right mortgage advisor for your specific needs.

What size home could I buy if I can pay £1,200 per month off my mortgage?

The size of home you can buy with mortgage payments of £1,200 per month tends to depend on where you buy the property. In some areas, a budget of £175,000 to £200,000 could buy you a comfortable house with a garden. However, you might only be able to afford a small flat or apartment in more expensive areas.

Even though paying £1,200 a month for a mortgage might sound like a lot, there are so many other variables that affect you options in the housing market. This is why without specific regional preferences and other financial details, it can be difficult to say what type of home that monthly mortgage payment will buy you.

For more specific details of how much mortgage you can get for £1,200 a month, speak to an advisor.

How will a lender calculate the size of mortgage I can afford with £1,200 a month?

Since a full review of the mortgage market after the 2008 global credit crunch—which tested banks’ ability to continue normal operations during periods of severe financial stress—most mortgage lenders now use an affordability approach to their lending practices.

This means that instead of a basic income multiple, where a lender might lend you between 4-4.5 times your average annual income, they also take into account how much you can comfortably afford to repay each month.

That calculation is based on your regular outgoings, such as gym memberships and utility bills. Debt servicing payments are also taken into account, while lenders will also want to leave some leeway in case interest rates rise and the cost of borrowing your mortgage rises in the future.

Following that affordability calculation, your chosen lender may decide that you can’t afford to repay £1,200 per month on a mortgage and give you a lower figure, say around £1,000 per month.

Or, they could tell you they think you could comfortably afford to repay £1,500 per month on your mortgage, giving you a larger house-hunting budget. However, while it’s possible to make your own estimate with our mortgage repayment calculator, you won’t know your maximum mortgage budget with any real certainty unless you speak with a mortgage advisor.

What term will my mortgage be over if I pay £1,200 a month?

If a lender confirms that you can afford a mortgage that requires monthly repayments of £1,200, one way of securing a larger mortgage could be to take out one that’s more than the typical 25-year mortgage term.

£1,200 mortgage on a 30-year term

By adding five years and increasing the term of your mortgage to 30 years your £1,200 per month repayment could buy you an extra £20,000 of mortgage debt. That could be the difference between a flat and a house, two or three bedrooms, or even the location you can afford to buy your home in.

In some cases, depending on your age, deposit and financial history, you may even be able to secure a mortgage over a 35-year term. However, to ensure you understand the implications of a longer mortgage and your commitment to repaying £1,200 per month, a discussion with a mortgage advisor can help.

Speak with an expert advisor about £1,200 mortgages today

If you feel you can afford a mortgage with monthly repayments of £1,200 but are unsure of how much that will allow you to borrow or over what term, then speak with a qualified and experienced mortgage advisor. They will answer all your questions relating to your potential mortgage and repayment abilities, and can also help you find the best lender for your specific situation.

Get in touch by calling 0808 189 2301 or making an enquiry here. Then you can just sit back and relax while we do all the hard work of connecting you with the right and most experienced mortgage advisor.

Updated: 4th December 2020
OnlineMortgageAdvisor 2021 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

Whatever your situation we've got it covered. Find your perfect mortgage broker

Get the ‘YES’ you’ve been waiting for 👍

Our broker matching service will match you to a real human being who’s a specialist in your circumstances – for free!

Your expert will find you the best deal that’s right for you and be with you every step of the way.


Get Started