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What Mortgage Can I Get For £500 a Month?

How much mortgage can I get for £500 per month? Find out here.

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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: 6th May 2020 *

We often hear questions like “how big a mortgage can I get for £500 a month”, and there are various factors that will affect how much loan you’re offered, determined by your mortgage provider who will take your personal circumstances and their own criteria into consideration. 

Jump to our calculator journey to establish what you can afford, the costs and which of the best deals you'll qualify for.

In this article we’ll explain what these are so that you can feel more informed about  what mortgage can I get for £500 a month.

We’ll be covering the following topics…

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How much mortgage can I get for £500 per month?

Typically speaking if you have £500 a month to spend on a mortgage and you have around a 20% deposit you could be looking at a mortgage that ranges from £75,000 to £120,000 dependent on your circumstances, interest rates and lender criteria.

To give you an idea, if you took out a mortgage of £112,000 at a rate of 2.5% over 25 years you’d be making monthly repayments of £502.45 based on a repayment mortgage and £233.33 if it’s an interest only mortgage.

Use our mortgage calculator to work out how much you may be eligible for.

What mortgage can I get for £500 a month in the UK?

We often get asked “what mortgage can I afford with £500 repayments per month?” Mortgage lenders access affordability using their own criteria which is explained below, but they will also make a decision based on how much deposit you put down.

The maximum amount of loan that’s available to you is calculated to include factors like the following:

  • Personal income: How much do you earn, or what other income do you receive?

Your lender will also consider the LTV (loan to value rate) to determine how much you can borrow in relation to what the value of the property that you want to buy is.

The maximum amount you’ll be offered will vary between providers which is why it’s important to get quotes or speak to a mortgage broker who can assist you with this. We can help you find one, simply make an enquiry and we’ll connect you to one of the experts that we work with.

What factors could affect what I get for a mortgage that’s £500 a month?

As well as your employment status and income, mortgage providers take the following into account which will impact on the amount of loan they offer you. These include:

Age: Often the younger you are the better the mortgage you’re offered as you have a long working life left to make repayments. If you’re close to retirement you’ll need to prove you can afford to pay back the loan.

Credit rating: A bad credit score can mean you have difficulties getting a mortgage approved or that you’re offered unfavourable rates. Find out more about bad credit mortgages.

What length of mortgage can I get for a £500 a month mortgage?

Typically the average length of a mortgage is 25 years, but this is a discussion you’ll need to have with your mortgage broker or provider. They need to be confident that you can afford to pay back any loan, whether that’s for a shorter or longer period of time.

What interest rates would I pay on a £500 per month mortgage?

This will vary according to the amount of loan that’s approved. The larger your deposit, the lower your interest rate should be. However lenders will take your personal circumstances into account and if you have a history of bad credit, they may charge higher interest rates.

How can I find out more about a £500 a month mortgage?

If you have specific questions about what size mortgage you can get for £500 a month, and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 6th May 2020
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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 info 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.

Find out more about mortgage affordability

Mortgage Affordability