Maximum Mortgage Value For Repaying £1,000/month
Whether you are just starting your search for a mortgage at £1,000 a month or would like to know the best rates available on this budget, the key is to know which lenders to apply to.
In this guide, the Revolution Brokers team will summarise how much you are likely to be able to borrow, and what factors will impact your likelihood of securing the mortgage offer you are seeking.
For more help with finding the best lending options, give us a call on 0330 304 3040, or email the team at [emailprotected] for independent advice from a whole-of-market broker.
What Sort of UK Mortgage is Available for £1,000 a Month?
Having a budget in mind is a great starting point when looking for a mortgage! The amount you qualify for will depend on your income and other factors. Still, if you know what you can afford, then it's likely you have already calculated your net disposable income and are prepared for an affordability assessment.
Lenders will look at lots of factors before they can offer to lend, including:
- What deposit you have available.
- How much the property is worth, and what Loan to Value ratio you want to borrow.
- The length of the mortgage term.
- Your age and credit rating.
Each of these factors is assessed for a risk factor, and so the less risky the application, the lower the interest rates available and the larger a mortgage you are likely to be able to apply for.
Illustration:
Scenario One - you have a £5,000 deposit, clean credit rating, and an affordability assessment confirms that you can comfortably afford a repayment of £1,000 a month.
Your mortgage limit is set at £195,000 - £200,000, and you can afford a mortgage at an approximate rate of 3.5% over a standard 25-year term.
Scenario Two - you do not have a deposit, don't have a great credit history but can afford the £1,000 monthly repayment figure.
In this scenario, you might be offered a mortgage capped at £175,000, and be quoted a 5% interest rate averaged out over the 25 years.
