£800-900 Per Month Mortgages

Find out what sort of mortgage you can get for an £800-900 per month budget

Home Mortgage Affordability £800-900 Per Month Mortgages
Pete Mugleston

Author: Pete Mugleston

Mortgage Advisor, MD

Nathan Porter

Reviewer: Nathan Porter

Independent Mortgage Advisor

Updated: November 27, 2023

How we reviewed this article:

Our experts continuously monitor changes in the financial space and work closely with qualified mortgage advisors for factual verification.

November 27, 2023

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 sorts of 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 the purpose of this table, we are assuming the interest rate stays the same for the full length of the mortgage. Interest rates can change, if you decide to remortgage on to a different rate or move from either a fixed or discounted deal on to the lender’s standard variable rate (SVR). 

The maximum amount you can borrow on a mortgage is not based on an amount you’ve budgeted. It’s actually based on a multiple of your annual salary, typically 4.5 times what you earn, although some lenders go higher than this.

Try our mortgage affordability calculator below to work out 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.

Input full salaries for all applicants
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Your Results:

You could borrow up to 

Most lenders would consider letting you borrow

This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders.

Some lenders would consider letting you borrow

This is based on 5 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender.

A minority of lenders would consider letting you borrow

This is based on 6 times your household income, a salary multiple you will struggle to get without a broker. Six-times salary mortgages are usually only available under very specific circumstances.

Get Started with an expert broker to find out exactly how much you could borrow.

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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, there are plenty of specialist lenders who can provide mortgages for people who don’t match mainstream lending criteria but can prove they can afford the loan.

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Get matched with the right mortgage broker for your budget

An £800 to £900 per month mortgage could easily be enough to help you get on the property ladder or buy your next home. Nonetheless, 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 then pair you with a whole of market broker we work with who has a track record of finding the best deals on the market for borrowers just like you.

Call today on 0808 189 2301 or enquire online to arrange a free, no-obligation chat.

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About the author

Pete, 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 found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with 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!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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