How Much Mortgage Can You Get For £300 Per Month?

In this article, you’ll learn what mortgage you might be able to get for £300 per month and how a broker can help make sure you get the right deal according to your circumstances.

What type of mortgage can you get for £300 per month?

Realistically, there are 2 potential mortgage types which might be available:

• Repayment mortgage: This is the standard type in which your monthly repayments cover the capital and interest. At the end of the term, your loan is fully paid off.
• Interest-only mortgages: These are less common but have lower monthly repayments as you only pay the interest. They can be a good choice if you need a mortgage on a low income or face affordability issues. You will need a suitable repayment vehicle to clear the capital at the end of the loan term.

Interest-only is usually your best bet if you’re looking for a buy-to-let mortgage for approximately £300 per month, as you could invest your rental income in your repayment vehicle.

The main factors that will affect how much you can borrow are the size of your deposit, interest rate, and the term of your mortgage. Other factors will also affect this, but these are the key drivers.

How much can you borrow with this budget?

There are many factors that will determine how much you could borrow, but the table below gives a mix of scenarios to illustrate. It’s important to understand and highlight the difference the mortgage term and the interest rate will make (aside from your deposit, which you’ll need to consider). 

For this table, we assume the interest rate stays the same for the full length of the mortgage. Interest rates can change if you decide to remortgage to a different rate or move from a fixed or discounted deal to the lender’s standard variable rate (SVR).

How is affordability calculated?

Maximum mortgage borrowing is not based on the amount you have budgeted for monthly repayments: £300 per month. Most mortgage providers determine this based on a multiple of your annual salary.

Most lenders use income multiples to calculate your borrowing capacity. The maximum you can borrow is between 4.5 and 5 times your annual salary. However, some lenders might consider letting you borrow six times your income under the right circumstances.

Use the calculator below to calculate how much you could borrow based on your income:

Get matched with a broker specialising in smaller mortgages

It’s possible to get a mortgage for £300 per month. You must consult a mortgage broker with experience helping people in your position and a strong network of lenders.

The brokers we work with have relationships with high-street banks and specialist lenders who often take a more flexible approach to underwriting. This allows room for negotiation and the chance to borrow based on higher income multiples.

We offer a unique broker-matching service designed to find the best based on your circumstances and the broker’s knowledge and experience.

Call today on 0330 818 7026 or enquire online to arrange a free, no-obligation chat.