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Mortgage Affordability
£400 – £500 A Month Mortgages
We’ll show all the details you need to know about getting a mortgage for £400 – £500 per month. Along with finding out how much you can borrow, we’ll also explain how to get the best rates and make your money go further.
What size mortgage can you get for £400 – £500 per month?
If you were to secure a rate of 4.5% over 25 years, you could borrow up to £89,955 on a repayment mortgage at £500 per month.. However, there are lots of permutations involving the rate, mortgage term and type.
The following tables show potential mortgage sizes based on these monthly repayments:
£350 a month
| Interest rate | Deposit | Term Length | Mortgage amount |
| 4.5% | 10% | 25 years | £62,969 |
| 5% | 10% | 25 years | £59,871 |
| 5.5% | 10% | 25 years | £56,995 |
| 6% | 10% | 25 years | £54,322 |
£400 a month
| Interest rate | Deposit | Term Length | Mortgage amount |
| 4.5% | 10% | 25 years | £71,964 |
| 5% | 10% | 25 years | £67,424 |
| 5.5% | 10% | 25 years | £65,137 |
| 6% | 10% | 25 years | £62,083 |
£450 a month
| Interest rate | Deposit | Term Length | Mortgage amount |
| 4.5% | 10% | 25 years | £80,960 |
| 5% | 10% | 25 years | £76,977 |
| 5.5% | 10% | 25 years | £73,279 |
| 6% | 10% | 25 years | £69,843 |
£500 a month
| Interest rate | Deposit | Term Length | Mortgage amount |
| 4.5% | 10% | 25 years | £89,955 |
| 5% | 10% | 25 years | £85,530 |
| 5.5% | 10% | 25 years | £81,422 |
| 6% | 10% | 25 years | £77,603 |
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Calculate your maximum borrowing
Maximum mortgage borrowing is not based on the set amount you’ve budgeted for mortgage payments – in this case, £400 – £500 per month. Lenders usually calculate this based on an income of your annual salary, unusually up to 4.5 times your wage, but sometimes more.
You can work out your maximum borrowing using our affordability calculator below.
Important: Any online mortgage calculator can only ever provide you with a rough guide on the amount you can potentially borrow. Once you’ve got your estimate, make an enquiry and we’ll set up a free, no-obligation chat with a broker who can calculate the exact mortgage amount you’d be eligible for, based on a bespoke assessment of your circ*mstances.
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Factors that impact what mortgage you can get
Knowing what factors affect your ability to get a mortgage with your required repayment can help you stretch that payment further, perhaps meaning you can borrow more.
Rate
The interest rate can be hugely influential on the amount you can borrow. For example, in the case of a £500 per month mortgage, you could borrow over £20,000 more with an interest rate of 4.5%, versus 6%, over a 25-year period.
Deposit and LTV
Generally speaking, the higher your deposit, the more mortgage lenders and products you’ll have access to. Many require 10% as a minimum, though some may accept 5%. However, if you are trying to keep your payments at £400 – £500, a higher deposit may mean you have to borrow less, equating to a lower repayment amount.
Additionally, lenders often offer lower interest rates on mortgages with higher deposits and with a better loan-to-value ratio, making your monthly repayment stretch further.
Term length
The longer your term length, the lower your monthly repayments will be. Usually, mortgages attract 25 year terms, but some lenders will go to 30 while some may even go to 40.
Do remember, that while lengthening your term may reduce your monthly repayments, you will end up paying more interest over the course of your mortgage.
In the case of a £450 per month mortgage, see how the term length can result in a swing of over £50,000 using the rates below.
| Monthly repayment | Interest rate | Deposit | Term Length | Potential mortgage amount |
| £450 | 5% | 10% | 10 years | £42,427 |
| £450 | 5% | 10% | 20 years | £68,186 |
| £450 | 5% | 10% | 30 years | £83,827 |
| £450 | 5% | 10% | 40 years | £93,323 |
Mortgage type
Different mortgage types have different terms and conditions – such as interest rates, required deposit amounts and income source. For that reason, you may find that you have to borrow less with some types – perhaps as you are only offered a higher, more expensive rate or a shorter term. For example, buy-to-let mortgages typically attract higher interest rates than traditional repayment mortgages.
You could also potentially borrow more if you’re spending £500 per month on an interest-only mortgage, as your repayments will only cover the interest element of the mortgage.
Credit history
Your credit history will always be investigated with a mortgage application. You may still be able to secure a mortgage with bad credit, but you may find that you are offered a higher interest rate. Consequently, to keep your repayments at £400 – £500 a month, you may have to borrow a lower amount.
Get matched with an expert advisor specialising in smaller mortgages
If you’ve got a limited budget of roughly £500 per month, using an experienced broker is the best way to increase your range of mortgage options.
We offer a free, broker-matching service. This means we’ll quickly assess your budget and needs, then pair you up with an expert broker.
Just call 0808 189 2301 or make an enquiry. We’ll set up a free, no obligation chat between you and your ideal mortgage broker.
