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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: 8th September 2020*

If you’re ready to take out a mortgage and have £5,000 a month to spare on repayments, you may be wondering what size home loan you could get.

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

Understanding what your optimal mortgage term length would be and how a lender will calculate mortgage size based on a £5,000 per month repayment plan are just some of the factors you should investigate. 

Getting a good deal on interest rates and mortgage terms and conditions could save you thousands of pounds, so experts advise carefully researching the market and speaking to a mortgage advisor before reaching any final decisions.

In this article, we’ll cover…

If you’d like help in understanding your mortgage affordability, make an enquiry. We can connect you to a mortgage expert who’s the right match for your needs and situation. 

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What size mortgage can I get for £5,000 per month?

Before you start shopping around for a property, you’ll need to know how much mortgage you can afford to borrow when paying back £5,000 per month. There are several ways to gain an initial understanding of your mortgage affordability

One option is to use an online mortgage affordability calculator. If you plan to use an online calculator as a very rough guide, select one that works out the total mortgage, then fill in the monthly sum, an estimated interest rate, and the mortgage term. This will give you an estimation of what size mortgage you could get in exchange. Every lender’s calculator is different so make sure you speak to one of the brokers we work with as they know exactly which ones could save you time and money.

For example, if you select a monthly repayment of £5,000 with an interest rate of 5%, plus a mortgage term of 20 years, an online calculator could show your mortgage affordability as a loan in the £700,000–£800,000 range. The total mortgage calculator will give you an approximate idea of how much you may be able to borrow. However,  it’s best to speak to a mortgage broker for more specific results that take full account of your financial situation.

Call Online Mortgage Advisor on 0808 189 2301 or make an enquiry.

How will a lender calculate a £5,000 per month mortgage?

If you have £5,000 per month to invest in repayments, you can find your mortgage affordability by speaking to a mortgage lender and asking them how they will calculate your mortgage size offer. 

The mortgage offer will vary from lender to lender and will depend on further factors such as any other monthly credit commitments, your credit rating, and regular income. Whichever route you take to understanding your mortgage affordability, make sure you save money by getting expert advice from a broker with access to the whole market, like the ones we work with. 

If you want help with understanding your best options in terms of interest rates and mortgage term length and size for a £5,000 per month repayment, make an enquiry. We’ll put you in touch with the right mortgage broker for your circumstances. 

How does the term length affect a £5,000 a month mortgage?

Whether your mortgage payments end up amounting to £5,000 per month will come down to the term length, at least in part.

Mortgage term length is one of the most important considerations for taking out a mortgage loan. This is because you’ll need to ensure you’ll be comfortable with the payments in the long-term and think ahead to how you would handle the repayments should there be any unexpected changes to your financial circumstances. 

The average length mortgage length is 25 years, but some new house buyers opt for a longer-term mortgage to ease financial pressure on repayments. There are pros and cons to paying off your mortgage over a shorter or longer length. 

Speak to a financial advisor about your overall financial situation to get advice on mortgage term length and which lenders would offer you the best deal for your ideal term length. 

How do I find the best interest rates for a £5,000 per month mortgage? 

Finding the best interest rates for a mortgage of £5,000 per month will come down to many different factors, including your credit score, how much deposit you can put down, your mortgage term length, and whether you opt for a variable interest rate. Always shop around for the best interest rate and take the time to compare lenders’ terms and conditions, but you don’t need to do the legwork on this yourself.

To cut to the chase on finding the best mortgage interest rates, speak to an expert mortgage advisor. They will know how to compare offers against the whole of market and can help you find any ‘hidden deals’ that may not be immediately apparent if you were to do your own search. 

Speak to an expert broker about £5,000 per month mortgages

With £5,000 per month to pay off your mortgage, you should be well positioned to secure the property and mortgage amount of your choice. Speak to an expert mortgage broker to make sure you get the best deal on interest rates and terms and conditions. 

Call Online Mortgage Advisor on 0808 189 2301 or make an enquiry and we’ll put you through to the best mortgage advisor for your circumstances. We don’t charge a fee and there’s absolutely no further obligation or marks to your credit rating. 

Updated: 8th September 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.