UK Mortgage Calculator

Use our UK mortgage repayment calculator to get an indication on what you can expect to pay for your mortgage loan repayments each month. We have access to the competitive rates in the UK.

Whether you are looking to borrow £25,000 over 5 years, or £250,000 over 20 years, our online mortgage calculator will give you a quick insight as to how many the monthly repayments will be, based exclusively on your individual borrowing requirements.

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What can our mortgage loans be used for?

Our borrowing products can be used for any practical reason you have in mind. Whether you are a first time residential buyer in need of a loan or looking to release equity or re-mortgage, we will search the entire lending market on your behalf in order to source the most suitable loan product based on your own specific needs.

If you have been turned down due to bad credit in the past by another lender, then you really shouldn’t let this put you off. We offer a fully FCA authorised and regulated lending service that is aimed at helping all current and prospective homeowners and mortgage holders gain access to the funds they require, these are often through the use of our subprime mortgages. As the loan is secured, you can apply to borrow a significantly higher-value loan amount ranging from £20,000 to £200,000 and above.

You can also choose your own repayment terms, from 3 to 30 years, and if you only need to borrow over a short-term period then you will be delighted to know that we also offer intelligent bridging finance options that are available up to 12 months, with just one fully-inclusive repayment required at the end of the term and low rates starting from just 1.79% per month.

As long as you are 18 years of age or older, able to provide the require deposit or own a property with sufficient equity as collateral, and you can comfortably afford to make the repayments, our dedicated UK mortgage loan experts should have no difficulty whatsoever in providing an affordable borrowing product that will fit your individual borrowing needs and financial circumstances perfectly.

Mortgage Calculator & Eligibility FAQs

How much do I need to earn to obtain a mortgage of £150,000?

Each lender has its own unique policies and borrowing criteria that require satisfying before a mortgage is agreed. Most mainstream lenders calculate maximum borrowing amounts as a multiple of annual salary, while others take additional factors into consideration such as overall affordability. As a rule, the annual salary needed to qualify for a £150,000 mortgage would be a minimum of £30,000.

How much do I need to earn to obtain a mortgage of £250,000?

Again, it depends entirely on your wider financial circumstances. With a UK lender willing to offer you a maximum of 3X your annual salary, you would need to earn approximately £85,000 a year however a more flexible lender may offer you up to 6X your annual salary which means you would need to earn around £45,000 to qualify.

What mortgage can I obtain for a monthly payment of £500?

The amount you could borrow by repaying £500 per month depends on a variety of factors, the most important of which is the length of the repayment period and how much you offer by way of a deposit. Generally speaking however a 20% deposit followed by monthly repayments of £500 could allow a mortgage of between £80,000 to £120,000 on a repayment basis (capital and interest).  Capital and interest means that each monthly payment, provided it is paid on time and in full, reduces the initial loan amount borrowed and covers the interest on the loan so at the end of the chosen term, the remaining balance will be zero. 

Can I obtain a mortgage if I have bad credit?

Absolutely but it is essential that you target the right lender with your application as most major high street banks are unwilling to consider applicants with poor credit.  For this reason, it is important to use a brokerage such as UK Property Finance to sift through the criteria of each lender so that you only apply to those who will accept your level of bad credit.  If not, you run the risk of additional damage to your credit report due to multiple rejected applications.

How to obtain a mortgage with bad credit?

The key difference when applying for a mortgage with bad credit lies in the lenders targeted. In addition, it can be much quicker and easier to obtain a mortgage with bad credit by working with a broker such as UK Property Finance. Bad credit applicants will be required to provide comprehensive evidence of financial status and prove capacity to repay the loan.  Some lenders may also request a bigger deposit.

What is a mortgage decision in principle?

A mortgage decision in principle (DIP) is a formal declaration from a lender, indicating the amount of money they are willing to offer to enable you to buy your home.  The agreement is always subject to additional underwriting and confirmation that the initial information provided is correct. The DIP is made prior to the purchase being finalized, often before making an offer on a property and does not necessarily guarantee eligibility for a mortgage. Additional eligibility checks may be completed when the initial DIP proceeds to a full application. 

How much would I pay monthly on a £150,000 mortgage?

It depends entirely on the length of the repayment period, the annual rate of interest (APR) and any other borrowing costs that apply. For example, a £150,000 mortgage taken over five years with an interest rate of 5% will cost approximately £2,800 per month. By contrast, spread the costs of the same mortgage over 35 years and you will be paying closer to £750 per month. For this reason, it is important to consider all options and establish your budget, before finalising the mortgage application.

Can I obtain a mortgage with a CCJ?

A County Court Judgment (CCJ) is a court order in England, Wales and Northern Ireland that has been registered for failure to repay money owed.  CCJ’s can make it difficult or even impossible to qualify for a mortgage with a major high street lender. There is however a growing network of specialist UK lenders who accept applications from clients with CCJ’s. These lenders will assess your eligibility based on multiple factors, including the nature of the CCJ’s, when they occurred, your current financial status, your most recent credit history and so on.

How long does a mortgage decision in principle last?

With most lenders, a UK mortgage decision in principle (DIP) is valid for a maximum of 90 days however sometimes it is a little as 30 days. Should your DIP expire before you proceed to a full application, you may need to begin the initial application process again however doing so may have a negative impact on your credit score due to the number of applications.  It is advisable to apply for a DIP only when you are ready to proceed with a purchase.

How to get a mortgage with bad credit but good income?

Getting a mortgage with bad credit is significantly easier if you can prove you have a strong and regular income source. The lender will ask you to provide relevant documentation and evidence to support your application. Contact UK Property Finance anytime if you have any questions or concerns regarding your capacity to verify income.

I own my house outright, can I remortgage?

Absolutely, in fact, it should be no problem at all provided you pass the mortgage lenders standard underwriting criteria. The higher the equity percentage in your home (loan size, divided by property valuation, multiplied by 100), the more likely you are to be accepted for a remortgage or other secured loan.

Can I borrow money against my house to buy another property?

It is perfectly normal to borrow money against your home for pretty much any legal purpose. Most lenders will need to know the use of the money and will factor your intentions into their decision-making process however many lenders will allow you to raise money against your current home to enable you to buy another property.

Can you obtain a mortgage when your income is from benefits?

Depending on the chosen lender, being on benefits has no direct impact on your eligibility for a mortgage. As with a conventional mortgage application, your case will be assessed based on financial status, income, outstanding debts, credit history and the size of your deposit.  Some major high street lenders tend to scrutinise or even exclude applicant on benefits without fair consideration.

How long does a mortgage application take to be approved?

After initial application you may receive an immediate decision in principle although with some lenders may take a little longer.  It can however take on average 4 – 6 weeks, depending on the lender, to finalise your loan. It depends entirely on the chosen lender and the nature of your application.  Some specialist lenders can issue large mortgage loans within a matter of days.

What happens when my interest-only mortgage ends?

When your interest-only mortgage comes to an end, you will be expected to repay the initial loan advance in full. It is your responsibility to source the funds needed to pay off your mortgage and savings, investments or a new mortgage are the normal routes. The repayment vehicle should be carefully considered in advance before applying for an interest-only mortgage.

What is an agreement in principle?

An agreement in principle is the same as a mortgage in principle or decision in principle (DIP). This is where the bank or lender provides you with an initial decision and agrees to lend you a certain amount of money to buy a property.  An agreement in principle however does not guarantee acceptance as further eligibility checks may be performed by the lender later.

Will I get a mortgage?

If you have any questions or concerns regarding your eligibility for a mortgage, it is advisable to speak to an independent broker such as UK Property Finance before applying. In this way, the broker will carefully establish your requirements, assess your budget and ensure you apply to the right lenders.  Contact UK Property Finance anytime to discuss your eligibility in more detail.

Can you obtain a mortgage with a default?

default is a negative entry on your credit file that arises as a result of unpaid arrears. When a default is issued it usually means that the lender no longer sees the borrower as a customer, but instead sees them as a debtor.  If you have defaulted on a loan or mortgage in the past, you may find it more difficult to qualify for a new mortgage. Most major banks and high street lenders automatically exclude applicants with defaults on their credit history. By contrast, many specialist lenders look beyond defaults and credit issues and consider all applications by individual merit. If you have defaults on your credit file, contact a broker such as UK Property Finance before applying for a mortgage.

Can you have two mortgages?

With certain lenders, there are theoretically no limitations on the number of personal or investment mortgages you can have. Taking on additional debt is never advisable without careful consideration but multiple mortgages can open the door to the dream of portfolio property ownership. Provided you meet the necessary criteria and can evidence comfortably being able to afford the monthly repayments, you can apply for as many mortgages as you like.  Some lenders however will have exposure limits on how many mortgages you can have with them or any group that they are connected with.  Some lenders will also have limits on mortgage ownership irrespective of who the mortgages are with.  It is advisable to contact a specialist brokerage such as UK Property Finance prior to applying.

Do all mortgage applications go to underwriters?

No, some lenders handle all aspects of the process in-house electronically providing the case is straight forward and meets agreed guidelines.  Contact the team at UK Property Finance anytime for more information.

Does an agreement in principle guarantee a mortgage?

Unfortunately, receiving an agreement in principle does not guarantee a mortgage, nor does it provide any concrete assurances regarding how much money you can borrow. Agreements in principle are issued following relatively basic underwriting and credit checking. As such, it is possible for any bank or lender to reverse or alter this initial decision in principle after full underwriting.  This however rarely happens.

How does remortgaging work to buy another property?

Remortgaging is used for many reasons and often to raise a deposit or the full amount required for the purchase of an investment or second property. A remortgage gives you the option of raising additional borrowing against your home from either your current provider or switching to a new loan from a new lender. In both instances, you are simply using the equity tied up in your home to make an additional property purchase and once up and running the remortgage is repaid in the same way as any other mortgage.

How much does a mortgage cost?

Each mortgage has its own unique ‘cost’ determined by a multitude of factors.  The annual rate of interest (APR) payable on the loan and additional borrowing costs such as set-up fees, administration fees, legal fees, valuation fees, early repayment fees and so on, should all be considered.  Always ensure you carefully consider the applicable borrowing costs before proceeding with your mortgage application.  Contact UK Property Finance anytime if you need help deciphering the total costs of your chosen mortgage and to obtain comparisons.

What is the current mortgage rate?

Mortgage rates regularly change. In addition, the type of mortgage you choose, the deposit provided, credit history at the time of application etc. will all effect the rate of interest paid. Current mortgage annual percentage rates (APR’s) vary between 2% to 5%, depending on the nature of the loan and the lender used.  Historic interest rates have been much higher and in double figures.

Can a joint mortgage be transferred to one person?

There are various reasons why it may be preferable or necessary to transfer a joint mortgage to one person. Doing so is perfectly possible though it may involve the same credit checking and general eligibility assessments as applying for the initial mortgage.

Can I obtain a mortgage after an individual voluntary arrangement (IVA)?

An individual voluntary arrangement (IVA) is an agreement with your creditors to pay all or part of your debts. You agree to make regular payments to an insolvency practitioner, who will divide this money between your creditors. An IVA can make it more difficult to qualify for a mortgage using mainstream channels however many specialist lenders are willing to consider applications from individuals with an IVA. Your eligibility will be assessed on criteria such income, general financial position, the size of the deposit you can offer, recent credit history, how much you intend to borrow, performance whilst in the IVA etc.

Can self-employed applicants obtain a mortgage?

Some (if not most) UK mainstream lenders unfairly scrutinise self-employed applicants. Even if you have extensive proof of income, you may struggle to access a high street mortgage if you are self-employed. We therefore strongly recommend directing your mortgage application at specialist lenders who welcome self-employed applicants. Contact a member of the team at UK Property Finance anytime for more information.

How long does it take to obtain a mortgage in principle?

A mortgage in principle (aka agreement in principle) will typically be issued immediately after submission of your initial online application however with some lenders it can take a few days.  The full underwriting process may take several additional weeks to complete and in addition, it is important to note that a mortgage in principle does not necessarily guarantee a mortgage.

How many times my Salary is used to calculate maximum mortgage borrowing?

The most common method for calculating maximum mortgage borrowing is by way of a multiple of the applicant’s annual salary.  Some lenders work from an affordability calculator using various factors and some may use income multiples and offer up to 6X annual salary to calculate the maximum borrowing amount. Lenders will also inspect your financial status i.e. total outstanding credit commitments, your recent credit history and the size of the deposit you are providing.

How much do I need to earn to obtain a mortgage of £100,000?

Assuming you fulfil the required criteria (credit checks etc.), you should be able to qualify for a mortgage of £100,000 on an annual income of around £20,000 per year.

How much are the monthly payments per month for a £100K mortgage?

The answer to this question depends entirely on the specifics of the loan. For example, the length of the repayment period, the agreed annual rate of interest and so on. Contact UK Property Finance anytime if you have any questions or concerns regarding mortgage affordability.

How reliable is a mortgage in principle?

Most lenders will only issue a mortgage in principle when they are confident in your eligibility, nevertheless issues may be detected after a decision in principle is agreed which could result in its rejection or alteration. It is important to note that most mortgages in principles are reliable and successful when they proceed to a full mortgage offer or loan.

What happens after a mortgage in principle?

If you choose to proceed, following receipt of a decision in principle, the formal underwriting process begins. Additional eligibility checks will normally be completed and you may be asked further questions by the lender. For the most part, provided the information given to achieve the initial DIP was correct, it is simply a case of waiting for a final decision to be made.

How to obtain a mortgage when self-employed?

Obtaining a mortgage when self-employed mostly means providing the same types of income proof and verification of your overall financial position that you would if you were an employed applicant. Depending on the lender, this can be achieved by providing tax returns, bank statements, company records, financial projections and so on. As it can sometimes be more difficult to qualify for a mortgage as a self-employed individual, we strongly suggest using an independent broker such as UK Property Finance before applying.

What happens to a joint mortgage when you divorce?

There are various options to consider if you are separating but bound by a joint mortgage.  Examples are, one of the mortgage payers can take over the monthly payments, ‘buying out’ the other person on the mortgage contract or you can continue paying for the property together to maintain an even share of the equity and future increases.  If you have any questions or concerns regarding what happens to a mortgage when you divorce, contact a member of the UK Property Finance team anytime.

Can I obtain a mortgage while working on a fixed term contract?

Being on a fixed term contract (or a temporary contract) will not necessarily stop you applying for a mortgage however you may find it very difficult to qualify for a mortgage with certain mainstream banks or lenders. Specialist independent lenders are often willing to consider applications from fixed-term contract workers, assessing eligibility on their wider financial status. Speak to an independent broker such as UK Property Finance to discuss the available options, rather than taking your application directly to a lender.

Can I obtain a mortgage as a Carer?

The fact that you receive a carer’s allowance could significantly limit your options on the high street however obtaining a mortgage while on a carer’s allowance may be possible elsewhere. If you can verify that you have a strong financial position and prove you can comfortably afford the repayments, you may qualify for a mortgage with a specialist lender.  Contact UK Property Finance anytime for further information.

Can I remortgage my house to buy another property?

It is an increasingly popular option among UK homeowners. Whether you intend to purchase additional property to use personally or as an investment, it is often possible to access the equity tied up in your current home provided you can meet the chosen lenders standard mortgage underwriting criteria.  In fact, a remortgage loan in this instance (a new mortgage with the same or a different lender where additional funds are raised) can be used for almost any legal purpose.

Can you remortgage to pay off debts?

This is another common use for remortgage loans in the UK. If you are struggling with multiple debts (credit cards & unsecured loans etc.) or simply paying too much on a monthly basis, it may be beneficial to consolidate your debts into one single loan. In doing so, you could significantly reduce your monthly outgoings and save on the total balance to be repaid on your debts however it is important to remember that if you remortgage to pay off other debts you will usually be changing unsecured loans into loans that are secured against your property and ultimately your home may be at risk if you fail to keep up with your repayments on these debts.

How hard is it to get a mortgage?

On the UK high street, it has undoubtedly become increasingly difficult to qualify for a mortgage. Major banks and lenders are scrutinising applicants like never before and placing a heavier emphasis on credit reports, employment status and so on. Away from the high street, specialist independent lenders have filled the gap and are generally more flexible and accommodating.  For this reason, even if you have been turned down by a mainstream bank or lender, you may still qualify for a mortgage with an independent specialist lender.

How long do defaults stay on a credit report?

Irrespective of whether you repay your debts, all defaults usually remain visible on a credit report for a period of six years. This could disqualify you from high street borrowing however with certain specialist lenders your financial performance and credit history since the default may be considered before agreeing or declining a mortgage application.  As a rule, the more recent the default, the greater its influence over your eligibility for a mortgage.

How many Buy to Let Mortgages can I have?

With some lenders, there are no limitations on how many buy to let mortgages you can have. These lenders are more interested in your capacity to repay the loan which will often be assessed by a combination of the rental possibility of the property, expected rent, your income and financial status. It is not uncommon for buy to let landlords to have numerous mortgages running at the same time.  It is however important to note that before agreeing a loan some lenders, particularly high street lenders will put a limit on the number of individual mortgage loans you can have with them and/or will put a limit on the total number of outstanding mortgage loans you can have irrespective of which lender the loans are with.

How many times salary can I borrow for a mortgage in 2020?

The maximum borrowing for a mortgage loan will be determined entirely by your income, credit history and financial status (outstanding credit commitments) at the time of application. Lenders will generally calculate the maximum borrowing available by multiplying annual income by up to 5 although some specialist lenders will increase this to 6 or more. The deposit amount will also influence the maximum amount you can borrow.  It is important to note that lenders could reduce borrowing levels depending on an applicant’s age and outstanding credit commitments (loans, credit cards etc.).

How much does it cost to remortgage?

Some remortgage deals use the same fee structure as a standard mortgage.  Examples of which may include valuation fees, legal fees and various other administration fees, all of which must be considered alongside the annual percentage rate (APR) of the loan. Other lenders offer reduced or fee free products.  To ensure you receive the best possible deal, contact UK Property Finance anytime and we will compare the loans from dozens of leading specialists.

Can I remortgage to release equity?

Specialist equity release schemes are not the only options available for tapping into the capital tied up in your home. It is also perfectly possible to apply for a remortgage either with your existing service provider or a new lender. The money raised can be used for pretty much any legal purpose such as minor refurbishments, major property improvements, property investments or simply to obtain a more competitive mortgage product.  Remortgaging is generally regarded as the most affordable way of releasing equity in your property.

Who offers guarantor mortgages?

Several major banks and lenders offer guarantor mortgages nevertheless it is important to remember that the credit histories and financial circumstances of all signatories will be considered. You may find that the services of a specialist lender are more flexible and appropriate for your case. If you are considering a guarantor mortgage application or have any concerns regarding your eligibility, contact a member of the team at UK Property Finance anytime.

Can I change my mortgage to a Buy to Let?

Absolutely, changing a conventional mortgage to a buy to let mortgage is a surprisingly popular option however some lenders, particularly those on the high street do not allow customers to make the switch to a buy to let. In this case, you will need to consider alternative options.  A specialist broker such as UK Property Finance will compare deals from the whole of market and recommend the best product for you.

Can you get a mortgage with a part-time job?

Lenders in general are more interested in your total income and financial status than the number of hours you work. After all, it is perfectly possible for a part-time worker in a lucrative position to earn more than an entry-level full-time worker.  Provided you have enough proof of income, your part-time employment status should not be an issue.

How many months pay slips do I need for a mortgage?

This varies significantly amongst lenders & is also determined by the length of your employment.  Some lenders will accept just one months’ pay slip whereas others may require proof of income for a full year or longer. If you have any questions or concerns regarding your capacity to verify income, contact the team at UK Property Finance anytime.

Which mortgage lender lends the most?

Maximum mortgage policies vary significantly among major banks and independent lenders alike. For example, the biggest European bank, HSBC is currently able to offer a maximum of 4.75X the applicant’s annual salary while Barclays and Santander may offer up to 5.5X.  Flexible specialist lenders, away from the high street, can offer significantly more, depending on circumstances. Eligibility for larger mortgages is established on the basis of deposit, income, financial status (outstanding loans and credit cards etc. at time of application), credit history, employment status and so on.

Can I have two residential mortgages?

Residential mortgages are typically the cheapest mortgages available, hence, there could be more restrictions on the number of residential mortgages you can have.  Provided you can prove the income required to pay the first and subsequent monthly payments certain lenders will allow finance for the purchase of additional homes for personal use, a holiday home, weekend residence etc.

Can I remortgage to pay off debt?

Definitely but it is important to remember that as you are transferring unsecured debt to debt secured against your property, your home may be at risk if you fail to keep up with your monthly repayments. Consolidating debts with one affordable remortgage could lead to significant savings on your monthly outgoings and total amount to be repaid however it is important to seek professional advice before securing any loan against your property.  Contact UK Property Finance anytime.

Can you rent to a family member under a Buy to Let mortgage?

Some lenders offer a specialist ‘family buy to let mortgage’ that enables landlords to let properties to family members provided the rent adequately covers the monthly mortgage payments and estimated renovation costs.

How long do payday loans stay on your credit report?

Payday loans can have an adverse effect on your eligibility for mortgages, loans, credit cards and so on. Unfortunately, any record of payday loans on your credit report will be visible for at least six years nevertheless the longer the period between your last payday loan and your current application, the less likely it is to affect your eligibility.

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