How Much Mortgage Can You Get For £1,500 Per Month?
How much mortgage can you get for approximately £1,500 per month? Get the right advice here and how to get the best rate
Author: Pete Mugleston
CeMAP Mortgage Advisor, MD
Reviewed by: Jon Nixon
Former Director of Distribution
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.
In this article:
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 will run through a few different examples showing how much you can 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
Depending on the interest rate, You could borrow from £217,300 to £251,800.
| Payment Per Month | Interest Rate | Deposit | Term | How Much You Can Borrow |
|---|---|---|---|---|
| £1,400 | 4% | 10% | 25 years | £265,300 |
| £1,400 | 4.50% | 10% | 25 years | £251,800 |
| £1,400 | 5% | 10% | 25 years | £239,400 |
| £1,400 | 5.50% | 10% | 25 years | £227,900 |
£1,500
For £1,500 per month, you could borrow between £232,800 to £284,100.
| Payment Per Month | Interest Rate | Deposit | Term | How Much You Can Borrow |
|---|---|---|---|---|
| £1,500 | 4% | 10% | 25 years | £284,100 |
| £1,500 | 4.5% | 10% | 25 years | £269,800 |
| £1,500 | 5% | 10% | 25 years | £256,600 |
| £1,500 | 5.50% | 10% | 25 years | £244,200 |
| £1,500 | 6.00% | 10% | 25 years | £232,800 |
£1,600
£1,600 per month could mean you might be able to borrow from £248,300 to £303,200.
| Payment Per Month | Interest Rate | Deposit | Term | How Much You Can Borrow |
|---|---|---|---|---|
| £1,600 | 4% | 10% | 25 years | £303,200 |
| £1,600 | 4.5% | 10% | 25 years | £287,800 |
| £1,600 | 5.00% | 10% | 25 years | £273,700 |
| £1,600 | 5.50% | 10% | 25 years | £260,500 |
| £1,600 | 6.00% | 10% | 25 years | £248,300 |
£1,700
Paying £1700 monthly could mean a total borrowing amount of between £263,800 to £322,000.
| Payment Per Month | Interest Rate | Deposit | Term | How Much You Can Borrow |
|---|---|---|---|---|
| £1,700 | 4% | 10% | 25 years | £322,000 |
| £1,700 | 4.5% | 10% | 25 years | £305,800 |
| £1,700 | 5.00% | 10% | 25 years | £290,800 |
| £1,700 | 5.50% | 10% | 25 years | £276,800 |
| £1,700 | 6.00% | 10% | 25 years | £263,800 |
As you can see, there’s plenty of variety available. If you tweak these calculations based on different terms or deposits, you’ll get different 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
Mortgage Repayment Calculator
This calculator can tell you the monthly and overall cost of your mortgage, based on the loan amount, interest rate, and term length.
Your Results:
The monthly repayments on a mortgage would be
The total amount paid at the end of your mortgage term would be
Get started with an expert broker to find out how much they could help you save on your mortgage repayments.
Get Started
Speak To An Expert About Mortgage Affordability
Receive a Callback From a Qualified Mortgage Advisor
-
Compare The Best Deals Available To You
-
Receive Personalised Advice
-
Find Out What Rates You Could Get
How your affordability is calculated
Although many 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 methods and rules, but how much your income and outgoings are the main factors.
Lenders’ income multiples can vary widely. 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 few will even consider six times your salary.
If you need to go beyond six times your salary, some lenders will permit multiple sources of income, which can be important if you’re self-employed. Considering 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 borrow based on standard income multiples.
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 StartedWhat type of mortgage can you get?
The types of mortgage you can get will primarily depend upon your needs and the lender’s assessment.
Once everything has been considered, you could be eligible for these mortgages:
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 greatly impact 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. 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 your chance 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 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 build can directly alter your choice of lenders, reducing your chances of getting the mortgage you want. 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 broker-matching service. This means we’ll quickly assess your needs and then pair you up with an expert broker who can find you a top solution for your circumstances and budget.
Just call 0330 818 7026 or make an enquiry. Today, we’ll set up a no-obligation chat between you and an experienced local advisor.
Find the best rates you're eligible for
Get an expert to confirm the lowest repayments available to you today
Pete Mugleston
CeMAP Mortgage Advisor, MD
Pete, a CeMAP-qualified mortgage advisor and 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 successfully went the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained and 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!
Superb response and knowledgeable advisor
Steve, the financial advisor, contacted me within the hour and was very friendly, knowledgeable and professional. He seemed to relish my non standard requirement, diligently kept me updated during the day and we struck up a great relationship. Very impressed.
Peter Costello
Knowledgeable and Supportive
The team were fantastic and really knowledgeable and supportive. They answered all questions promptly and came back to me with regular updates. I have already recommended them and will use them again.
Dorothy
Prompt and Professional
A very prompt and professional service. The advise and guidance has been so valuable as a first time buyer.
Ayesha