What Mortgage Can You Get For £600 a Month?

Putting £600 a month toward a mortgage can go a long way, but how far exactly? What that monthly amount can get you as a total mortgage will be down to which lenders are available to you, the rates they offer and how reliable a lender they perceive you to be.

This guide explains why each factor matters, how to get the most out of a £600 a month budget, and where to get expert advice.

What size mortgage can you get for £600 per month?

It could vary from around £130,000 to £170,000. That’s quite a wide range, but there are other factors at play when it comes to mortgage affordability, specifically your annual income and regular outgoings.

These key factors, along with how lenders calculate your affordability using a multiple of your annual income rather than your monthly budget, are outlined in more detail later in this article.

Example calculations

The length of the mortgage term you opt for and the interest rate you’re able to secure will directly impact your monthly repayments. The table below of examples uses the assumption of a 10% deposit and details how these two variables might affect the total loan amount.

Being able to afford slightly more or less can also make a big difference, so it’s worth seeing if you could contribute an extra £50 a month. The tables below explain what £50 here and there can mean for your property search.

£550 a month

£650 a month

How to calculate your maximum borrowing

Your maximum mortgage borrowing will not be based on the amount you have budgeted for monthly mortgage repayments, in this case £600 per month.

Each lender is different and has its own way of assessing affordability alongside internal benchmarks that dictate what it can offer and to whom. As a starting point, many use an applicant’s annual income. They multiply it by 4 or 4.5 times to produce a rough mortgage figure.

If you have good credit and a regular stable income, some lenders may be willing to increase that to five or six times a salary. A broker would know which ones are more likely to offer that.

You can use our mortgage calculator below to calculate your borrowing limit based on the typical income multiples lenders use.

Other eligibility factors that could impact how much you can borrow

Of course, a mortgage isn’t just down to how much you want to pay, in this case, £600 per month, or how much you earn. There are several other criteria which could indirectly affect this.

A lender has to consider your whole financial picture to determine whether they’ll agree to lend you the amount you want and at what interest rate they deem appropriate.

They’ll consider:

• The deposit: 25% of a property’s total value is the ideal deposit. If 25% isn’t feasible, some lenders will accept 10% and even 5% deposits. But if you have bad credit or debt, you’ll likely need a bigger deposit to reassure the lender.
• Type of employment: Being self-employed is an issue for some lenders, but others, specialists such as Aldermore Bank and Together, won’t penalise you with higher interest rates. Ask a broker which lender to approach if this is your situation.
• Other factors: Lenders will also examine your spending habits, credit history, and debt. In short, you want to seem as reliable as possible so the lender can offer you the mortgage you need.

How a mortgage broker can help your £600 budget go further

Most UK house prices are in the £200,000 bracket, substantially higher than what £600 a month can typically get. While a mortgage broker might not be able to get you into this bracket, the ones we work with can advise on how to ensure you sit at the higher end of what’s possible to buy at £600 a month.

They can:

• Share tips on improving your application so lenders are more likely to offer you lower interest rates and agree on the term length you need, making your £600 go further.
• Scour the whole lending market to present you with a lender more willing to offer 5 or 6 times a salary.
• They will negotiate a deal on your behalf, utilising their expert knowledge and experience in getting similar mortgages for other buyers.
• Find you a lender who offers high-income multiples and accepts 100% of any supplemental income you might have

Can you get a buy-to-let mortgage for £600 per month?

Yes. There are no stipulations as to how much your monthly repayments must be. However, if you earn less than £25,000 a year or don’t have 25% of the property’s value as a deposit, you might find it harder to get a lender willing to offer you a buy-to-let mortgage.

It’s also worth noting that most buy-to-let mortgages are interest-only, so you’d need to prove to a lender that you have a repayment vehicle, aka a way of paying the full loan back in one payment at the end of the term.

Get matched with the right mortgage broker for your budget

In this situation, you need your money to go as far as possible. It would help if you had an expert who regularly acquires mortgages around the £600 a month mark. That way they’ll already know who you should submit your application to for the best chance of a great deal. This will save you time and money that’s better off going toward purchasing your new home.

Get in touch by calling 0330 818 7026 or making an enquiry and you’ll be matched to a broker best for your situation so you can set up a free, no-obligation consultation.