How much mortgage can you get for £300 per month?

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Home Mortgage Affordability How Much Mortgage Can You Get For £300 Per Month?
Pete Mugleston

Author: Pete Mugleston

Mortgage Advisor, MD

Jon Nixon

Reviewer: Jon Nixon

Director of Distribution

Updated: November 3, 2023

How we reviewed this article:

Our experts continuously monitor changes in the financial space and work closely with qualified mortgage advisors for factual verification.

November 3, 2023

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 that sees your monthly payments cover the capital and interest. At the end of the term, your loan is fully paid off.
  • Interest-only mortgage: These are less common but have lower monthly payments 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.

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

The main factors which will affect how much you can borrow will be the size of your deposit, interest rate and the term of your mortgage. There will be other factors but these are the key drivers.

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How much can you borrow with this budget?

There are a lot of factors which will determine how much you could borrow but to give some illustrations, the table below will give a mix of scenarios. 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). 

Estimated monthly repayment Interest rate Mortgage term Size of mortgage
£253 4.50% 30 years £91,203
£278 4.50% 25 years £83,375
£292 5.00% 25 years £87,689
£268 5.00% 30 years £96,628
£307 5.50% 25 years £92,113
£322 6.00% 25 years £96,645
£300 6.00% 30 years £107,919

For the purpose of this table we are assuming the interest rate stays the same for the full length of the mortgage. Interest rates can change, if you decide to remortgage on to a different rate or move from either a fixed or discounted deal on 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. The majority of mortgage providers determine this based on a multiple of your annual salary.

Most lenders use income multiples to calculate your borrowing capacity. Typically, the maximum you can borrow is usually between 4.5 and 5 times your annual salary, although a minority of lenders might consider letting you borrow 6 times your income, under the right circumstances.

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

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.

Input full salaries for all applicants
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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.

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Get matched with a broker specialising in smaller mortgages

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

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

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

Call today on 0808 189 2301 or enquire online to arrange a free, no-obligation chat.

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!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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