How Much Mortgage Can You Get For £5,000 Per Month?

In this article, we’ll explore how much you could borrow for £5000 per month, the factors that will impact your borrowing, and how a broker can help you maximise your budget.

What size mortgage can you get for £5000 per month?

As a ballpark figure, a mortgage in the region of £1 million is feasible. However, it’s important to realise that having £5000 per month spare doesn’t mean you can get a mortgage where the repayments are that high. You’ll need to earn significantly more than this to satisfy mortgage affordability criteria for this level of repayment.

Other factors that affect how much you can borrow include your deposit, interest rate and term length. The table below demonstrates how much of an impact these factors could have on the amount you can borrow.

In these cases alone, small changes to these variables can result in a difference of over £350,000:

What if you had some flexibility in your monthly repayments?

Small changes to your monthly budget can significantly alter your borrowing potential.

The following table shows the difference between £4,500 and £6,000 monthly repayments.

How is mortgage affordability calculated?

Mortgage affordability is not based on having a set amount available for mortgage repayments—in this case, £5,000 per month. Most lenders use a multiple of your annual income to determine how much you can borrow. However, some specialist lenders use other affordability criteria and usually decide on loan size and rates on a case-by-case basis.

A borrower can expect to be offered around 4-4.5 times their annual salary. In contrast, higher earners and those in certain professions may be able to borrow up to 6 times their income from some lenders. Of course, borrowing a higher multiple of your salary will mean you achieve a larger loan, and the table below shows how this would impact different salaries.

You’ll be classed as a high-net-worth individual if you earn more than £300,000 or have over £3 million in assets. High-net-worth mortgages are more niche, as major lenders are less equipped to assess this type or level of income and often have caps on the maximum they will lend, irrespective of affordability.

Those lenders specialising in high-net-worth mortgages can sometimes offer income multiples of 7 times or perhaps more for this type of client, as they can consider your broader financial assets alongside your income. If you fall into this niche, you will almost certainly need to speak to a broker, as the lenders tend to be accessible via an intermediary only.

How a broker can help your £5,000 budget go further

If you have £5000 per month for mortgage repayments, you’ll likely have several lenders vying for your application; however, to access the specialist lenders that are likely to be more generous with their borrowing, a broker with experience in dealing with larger mortgages is the best path to take.

The expert brokers we work with have close relationships with private banks and niche lenders that can better accommodate higher earners. They can provide bespoke calculations and advice relating to your precise financial circumstances, helping you better understand what level of borrowing you could achieve and which lenders will offer you the best deals.

Brokers can also play a crucial role in negotiating with lenders and estate agents on your behalf. They can also help you prepare and present a clear financial picture to the lender if you have more complex income and assets.

If you contact us, we can arrange for a specialist to contact you directly for a free, no-obligation consultation.

Other factors that impact how far your £5,000 will go

Whilst having a set amount available for mortgage repayments each month – in this case £5,000 – has an influence on the mortgage deal you end up with, there are several other factors that lenders will look at:

Deposit

The higher the deposit, the lower the loan-to-value, meaning lenders are more confident in offering a higher multiple of your income and preferential interest rates.

Mortgage type

At £5,000 per month, most mortgage types are available. However, some will arrive at more expensive rates than others, such as buy-to-let and commercial mortgages. You may also consider an interest-only mortgage to lower your repayments, as you will only be paying the interest element of your mortgage.

Length of the mortgage term

The table at the top of this page reflects the impact of the mortgage term. It stands to reason that the longer you have to repay the loan, the more you will be able to repay it. While older borrowers may not achieve the term lengths necessary, specialist finance products could help, such as retirement interest only and lifetime mortgages.

Interest rate

Each lender will have their own range of interest rates, and the more closely you match their criteria, the easier it will be to secure the most competitive rates. This impacts how much you can borrow because your affordability can be stretched further when less of your budget is used to service interest.

Credit history

Even those with a large income can be impacted by bad credit, as many lenders will be looking to your credit history to confirm your reliability in repaying loans. If you have a history of adverse credit, however, there are bad credit lenders available, and they may be able to help you better utilise your budget.

Property type

Some lenders will offer lower-income multiples or refuse to borrow on certain non-standard construction properties, such as listed buildings.

Get matched with a broker specialising in large mortgages

If you want to make the most of your £5000 per month budget, the most sensible option would be to approach a mortgage broker like those we work with. They can help you secure the level of borrowing you’re looking for and ensure you secure the most competitive interest rates for your circumstances.

You’ll likely be looking at properties valued at £1 million plus, which means you will want to access the more niche lenders and private banks that can accommodate large mortgage loans.

Call us on 0330 818 7026 or make an enquiry to be matched with the broker most suited to your needs.