ClickCease

See how we can help

0808 301 9509

Get a quote

£1000 a month mortgage

Author: Myles Robinson - Expert Finance Advisor

Posted: Jul 13, 2022

£1000 a month mortgage guide – What size mortgage can you get with 1k per month?

Potential home-buyers often contact us asking about the size of a house they can purchase or how much they can borrow for a £1,000 per monthly payment.

We as a mortgage broker company encourage potential home-buyers to get professional advice from mortgage advisors.

Ourselves and the online mortgage calculator will discuss monthly payments with you and, share helpful information to help you determine your budget.

Constitute financial advice today with a mortgage broker or use our quick online mortgage calculator now.

 

What mortgage is available for £1,000 per month?

It is common to have a fixed monthly amount to pay your mortgage when you purchase a house. Mortgage lenders will use affordability calculations for this confirmation, but most people have an idea of what they can and cannot afford each month.

Once you know how much you can afford to buy property, it is possible to calculate your monthly mortgage payments. Once you have this information, you can start looking for properties and scheduling viewings.

The amount of your monthly income will not determine the size of the mortgage you are able to secure.

There are many other important details, such as:

  • The size of your deposit
  • The loan-to-value rate
  • The interest rate charged
  • The mortgage’s expected term or length
  • Your age
  • Your financial history

The best interest rates and mortgages you can get are based on your credit history.

We are expert mortgage brokers

We have access to over 200 lenders in the UK to get you the best rates

Get your Quote

 

How to calculate your maximum borrowing

The amount of your monthly income is what will determine how much mortgage you can borrow. However, it’s not the maximum amount that you can borrow. Lenders will multiply your income by 4.5, 5, or 6 to calculate your affordability.

To find out an estimate of how much money you could borrow, use the online mortgage calculator.

Example using £1,000 monthly mortgage payments

You may be eligible for a mortgage if you have saved £5,000 to deposit and have a clean credit record. If your mortgage broker agrees that your monthly repayments of £1,000 are possible, the average interest rate will be 3.5% over 25 years.

If you do not have a deposit, which is rare, and you have a poor credit history or a very short credit history, your monthly £1,000 may not be sufficient to get a £175,000 mortgage. This is based on a 5% average mortgage interest rate over a 25-year period.

As you can see the interest rate increases when there are greater risks for the lender. This will make your monthly payment higher. You can always look into a longer-term mortgage. 35-year mortgage terms are more common, and 30-year mortgage terms are increasingly popular. Some lenders will lend mortgages for a longer time.

Get a quote  

 

How big a home can I afford for a £1,000 monthly mortgage?

The answer to this question is dependent on many variables and details associated with each mortgage application. You may not be able to buy something large in a high-end area of the UK if you have a small deposit.

Even if you only have a small deposit and a poor credit history, the amount of property you can buy with a £1,000 per-month mortgage will likely be larger than those in more expensive areas.

Talking with a mortgage advisor can help you find out the exact size of mortgage that you can get with a £1,000 monthly for repayments and all other important details that a lender considers.

Talking to an experienced and qualified mortgage advisor like those we work with can answer all of your questions about the size of mortgage that you can get for a £1,000 monthly repayment.

Is there a maximum mortgage I could get for £1,000 per month?

We’ve already said that the amount of mortgage you are able to secure depends on how much you can pay each month to your mortgage lender. This also depends on your financial history, deposit size, and other details.

A large deposit combined with a high loan-to-value (or LTV) rate of 50%, could make it possible to purchase a very expensive home. You could purchase a house worth £400,000 with a large deposit and a low-interest rate.

If you only have a small deposit or no down payment, you can still get a mortgage up to the £175,000 limit.

Our mortgage repayment calculator can help you get a better understanding of your particular circumstances. You can create your own table by using different parameters to show how much mortgage money you can get for £1,000 each month.

Each situation is unique and depends on your individual circumstances, as with all things financial. Contact to connect with a mortgage advisor who can answer your questions and help secure the best mortgage for you.

Get a quote  

 

How long can my mortgage last if I only pay £1,000 per month?

Your ability to repay your mortgage and the length of your mortgage will determine how long it takes. The mortgage term you agree to is not only dependent on your ability to pay £1,000 per month.

Can I get a 30-year mortgage at £1,000 per month?

It’s more likely that you will be able to secure a mortgage for a longer-term, say 30 years, if you are young when you purchase your home and get your mortgage. If you are buying a house and are 45 years old or older, the mortgage term offered by your lender may be shorter.

If you are interested in a longer-term mortgage, with your monthly repayments of £1,000, then a mortgage advisor can assist you. If you are older and have a high deposit, a good LTV rate, and can afford to pay £1,000 per month on your mortgage monthly, then you have more options for a long-term mortgage.

You will have fewer options to secure a long-term mortgage if you are older and have a smaller deposit. You will have fewer options for long-term mortgages if you have little or no credit history and a poor credit score.

Talk to our mortgage advisors and they will help you find the best mortgage for you.

Get a quote  

 

How do lenders calculate my mortgage payments?

Even if you only have £1,000 per month, lenders will use many different criteria and details to calculate your mortgage payments. These include:

  • Your earnings
  • Your debts
  • Regular outgoings
  • Your mortgage’s LTV rate
  • Your age
  • A rate of interest is based on the available information and determined from all the above.

New rules were introduced to encourage lenders to use affordability to calculate consumer lending after the 2008 global credit crunch. Mortgage lenders base mortgage calculations now on your take-home income, minus any regular repayments of debt, and any monthly payments that you may make. You may think that you can afford to pay £1,000 per month to get a mortgage. However, your lender will need to confirm this.

Sometimes it is worth waiting for the right time and paying off other debts before you apply for a mortgage. A mortgage advisor will be able to help you understand the lender affordability calculations and other options to make your £1,000 per month mortgage payments more affordable and secure the home of your dreams.

To get an idea of the amount your mortgage payments could be, you can use our mortgage repayments calculator.

What impact will interest rates have upon my £1,000 per month mortgage?

Lenders use interest rates as a means of setting their own mortgage, savings, and loan rates. This is a topic you should be aware of when it comes to the impact interest rates have on your £1,000 monthly mortgage.

Low-interest rates can lead to lower mortgage rates. In recent years, some mortgage interest rates were around 2%. Your £1,000 per month could go further if the rate of interest your lender charges for your mortgage is lower.

The Bank of England raises its key interest rate and most banks follow it. This means that your £1,000 per month to pay your mortgage payments won’t be able to buy as much debt, and your ability to secure a mortgage is less.

Get a quote  

 

If I have bad credit, can I still qualify for a mortgage?

Even if your credit score is not perfect, you should be able to pay £1,000 per month to a mortgage. The amount of a mortgage you can get depends on many other factors as described above.

Talk to an expert mortgage advisor if you are looking for a mortgage that you can get with bad credit but still able to pay £1,000 monthly.

A qualified mortgage advisor will answer all of your questions and help explain what mortgage options are available to you. You can pay £1,000 per month for repayments with no credit history or with bad credit.

Talk to an expert broker for £1,000 monthly mortgages

An expert advisor can provide the right advice if you are interested in learning more about how much mortgage you could get for £1,000 per month payments. To speak with an expert mortgage advisor, contact us today.

You can then relax and let us do all the work to find the right mortgage for you.

Get a quote  

More News