Mortgage Repayment Calculator

You can usually borrow around 4 to 5 times your salary. Some lenders offer up to 6 times your salary, but they will be very strict about who they lend this amount to. A lender’s income multiple can depend on:

• salary and source of income
• use of government homeownership schemes
• deposit size
• financial commitments and bills
• age
• length of mortgage
• leasehold costs.

Mortgage monthly payment calculators are an excellent way of finding out how much you might be able to borrow. Each mortgage repayments calculator is different, but basic online mortgage calculators will usually look at:

• how many people are paying the mortgage
• salaries
• secondary income
• mortgage type
• mortgage length
• interest rate

Most mortgage calculators do not look at:

• monthly expenses
• credit score
• costs of getting a mortgage
• interest rate changes
• life changes such as losing your job

Unlike calculators, most lenders look at every issue that could affect your repayments. You might also need to pass a lender’s ‘stress test’ before they’ll give you a mortgage. This is to make sure you’ll be able to pay your mortgage if something happens that affects your repayments.

This could include:

• losing your job
• having a baby
• being ill
• a change in interest rates

To pass the stress test, lenders will look at your salary and other types of income such as pensions and investments. Lenders also look at your credit history to see what type of borrower you are. This is called a credit check. It could be a hard or soft credit check, depending on their rules.

Even if a lender thinks you can afford the full amount they’re offering, you should decide how much is right for you. While a lender must consider a range of risk-based factors, such as a rise in interest rates or potential loss of employment, when offering you a mortgage, it is up to you whether you borrow the full amount offered.

Some people do borrow as much as they can in order to get their dream property. Others, on the other hand, may prefer to borrow less and take on less risk. This is ultimately down to personal preferences and attitudes to risk.

Think about what’s best for you. Remember, you might lose your home if you do not keep paying your mortgage.

According to our data, most people who get a mortgage to buy a property borrow between 2 and 4 times their income. Generally, the average loan-to-income (LTI) ratio is higher in the south of the country where houses are more expensive.

Even if you’ve got a poor credit score now, the amount you can borrow still depends on your personal situation. A lender looks at your credit history to see how well you’ve managed debt before. This is known as a credit check.

If you have bad credit history some lenders may:

• turn you down for a mortgage
• ask for a bigger deposit
• offer you a higher interest rate

Whether your credit history will affect your mortgage application depends on:

• what the credit problem is
• the amount
• when it happened

Missing a mortgage payment or going bankrupt are two scenarios that can stay on your credit report for six years. Missing payment on a loan is clearly more serious than missing a utility bill payment, for example, and as such can harm your credit score more severely.

It may be helpful to explain to a lender how you got into debt. For example, if your finances are normally well-managed, but your debt is a result of a life event such as divorce, a lender might not view your debt as seriously.

You should always speak to a mortgage broker to find out how your situation could affect how much mortgage you can borrow.

It is possible to get a mortgage with no deposit. However, most lenders require a deposit of at least 5% of the purchase price. 100% mortgages are usually linked to a relative’s or friend’s savings account.

Lenders who offer 100% mortgages include:

• Barclays
• Lloyds
• Tipton & Coseley Building Society
• Skipton Building Society

With Lloyds’ Lend a Hand Mortgage, instead of putting down a deposit, a family member puts 10% of the purchase price into a 3-year fixed-term savings account. At the end of the 3 years, your family member will get their savings back with interest if you made all your payments. The home is still yours. Your family member has no legal rights to it.

The monthly cost of a 150k mortgage depends on several factors, including the interest rate, mortgage type and the length of the term. For example, a 150k mortgage over 30 years may cost around £738 per month, based on a 4.25% interest rate. Shorter terms usually increase the monthly payments but reduce the total interest paid over the life of the loan.

For a personalised breakdown based on your exact circumstances, try our home loan calculator or take a look at our monthly repayment table, which ranges from 100k mortgages to 500k mortgages and a term of five to 30 years.

Mortgage payment calculators are perfect for anyone dreaming of buying a home or even considering refinancing an existing mortgage. Whether you’re a first-time buyer, a seasoned homeowner thinking of upgrading, or a real estate investor looking at your next opportunity, these quick mortgage calculators can guide you in making confident, well-informed decisions.