How Much Mortgage Can You Get For £800 Per Month?
Find out what sort of mortgage you can get for an £800-900 per month budget
Author: Pete Mugleston
CeMAP Mortgage Advisor, MD
Reviewed by: Nathan Porter
Independent Mortgage Advisor
In this article, we’ll look at what sort of mortgage you can get for £800 – 900 per month and how to get the best possible deal.
What size mortgage can you get for £800-£900 per month?
Based on the average term length of 25 years and an example interest rate of 5%, you could get a mortgage of just under £154,000 with up to £900 available for monthly repayments.
The following tables show your borrowing potential based on these monthly repayments.
£800 a month
| Interest rate | Mortgage term | Mortgage loan |
| 4.5% | 25 years | £143,928 |
| 5% | 25 years | £136,848 |
| 5.5% | 25 years | £130,275 |
| 6% | 25 years | £124,165 |
£850 a month
| Interest rate | Mortgage term | Mortgage loan |
| 4.5% | 25 years | £152,924 |
| 5% | 25 years | £145,401 |
| 5.5% | 25 years | £138,417 |
| 6% | 25 years | £131,926 |
£900 a month
| Interest rate | Mortgage term | Mortgage loan |
| 4.5% | 25 years | £161,919 |
| 5% | 25 years | £153,954 |
| 5.5% | 25 years | £146,559 |
| 6% | 25 years | £139,686 |
£950 a month
| Interest rate | Mortgage term | Mortgage loan |
| 4.5% | 25 years | £170,915 |
| 5% | 25 years | £162,507 |
| 5.5% | 25 years | £154,701 |
| 6% | 25 years | £147,447 |
For this table, we assume the interest rate stays the same for the full length of the mortgage. Interest rates can change if you remortgage to a different rate or move from a fixed or discounted deal to the lender’s standard variable rate (SVR).
The maximum amount you can borrow on a mortgage is not based on your budget. It’s based on a multiple of your annual salary, typically 4.5 times what you earn, although some lenders go as high as 5 times or 6 times your salary.
Try our mortgage affordability calculator below to determine how much you could borrow based on the standard income multiples UK lenders use.
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.
Based on your total household income, you could borrow up to:
*
4.5x income
This is what most lenders would consider letting you borrow
5x income
Some lenders would consider letting you borrow this amount
6x income
Very few lenders would consider letting you borrow this amount
*To get exact numbers based on your specific income, outgoings, age and other info, you'll need to speak to one of our experts. Lending policies change regularly, so this is purely for illustrative purposes only, and is not tailored financial advice.
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What factors affect the outcome of the application?
The four biggest determining factors are the term length of the mortgage and the interest rate you’re able to secure:
1. Term length
The most common mortgage length is 25 years but that’s by no means your only option. Going for something shorter or longer – even up to 40 years – is a possibility with certain lenders like Kensington Mortgages and HSBC.
Lengthening a term typically allows you to borrow more as paying £900 a month over 40 years equates to a bigger loan than if you paid that over 25 years; potentially as much as £100,000 more. Many lenders also insist that you must be no older than 70 by the time the loan is due to be repaid.
The below table shows how term length can affect both a £800 and £900 a month mortgage with a 5% interest rate.
| Repayment | 20 years | 25 years | 30 years | 40 years |
| £800 a month | £121,220 | £136,848 | £149,025 | £165,907 |
| £900 a month | £136,373 | £153,954 | £167,653 | £186,649 |
2. Interest rates
The lower the interest rate, the more of the £900 per month can go toward repaying the loan. This again means you can afford a bigger mortgage size. Rates usually sit between 4.5% and 5.5%.
To get toward that lower end you’ll need a strong application with a limited number of what lenders might consider red flags: bad credit, debt and a small deposit. These will play a pivotal role in your application and determining your interest rate.
3. Deposit amount
A bigger deposit will often allow you to access better rates. Lenders tend to create ‘bands’ for different deposit amounts so their highest rates will be offered to borrowers with 5% deposit with rates getting incrementally better at 10%, 20% and 40%. So, if buying a cheaper property or saving for a few more months will move you into the next band, your £800 might go further
4. Employment status
Mainstream lenders prefer the stability of full-time work with a regular income. If you are self-employed, have multiple earnings streams or have complex income, you may find that, while affordability is not an issue, your employment status is.
Fortunately, plenty of specialist lenders can provide mortgages for people who don’t match mainstream lending criteria but can prove they can afford the loan.
Get matched with the right mortgage broker for your budget
An £800 to £900 monthly mortgage could be enough to help you get on the property ladder or buy your next home. Maximising your borrowing capacity involves identifying the right lender and tailoring your application to their affordability criteria.
The first step to getting the right mortgage is finding the right broker. Our unique broker matching service will quickly assess your circumstances and pair you with a broker we work with who has a track record of finding the best deals on the market for borrowers like you.
Call today on 0330 818 7026 or enquire online to arrange a free, no-obligation chat.
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Pete Mugleston
CeMAP Mortgage Advisor, MD
Pete, a CeMAP-qualified mortgage advisor and 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 successfully went the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained and 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!
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