£1200 a month mortgage
You might be looking to get a mortgage if you can afford around £1,200 per month on monthly mortgage repayments. Then you may have thought about how much money you could borrow from a mortgage lender and the terms of your mortgage.
A good deal at a low-interest rate can save you thousands. This is why it’s important to consult a qualified mortgage broker to get more clarity about your budget for monthly payments. This article can help you get an idea of what you could afford with £1,200 per month.
Quickly find out now with our online mortgage calculator
What is the maximum amount of mortgage I can afford to borrow if I pay £1,200 per month?
You should be able to budget on the basis of your monthly mortgage payment of £1,200 per year. This will put you in a good place. The maximum price that you can afford to buy a home is not just dependent on your monthly payment and monthly income.
You can also limit how much money you spend on a house.
- The size of your deposit
- Mortgage interest rates
- The ratio of loan-to-value (LTV).
- What length do you agree to your mortgage term
- Your credit history
- Your earnings
- Any existing debts that you may have
A mortgage can be secured if you have a deposit of 5-10% of the property’s value. You will need to be able to repay £1,200 per month for the monthly payments and have good credit and a deposit of £10,000 to get a loan for £190,000. This would allow you to purchase a home valued at £200,000.
However, if your deposit is smaller than you would like and you have poor credit, you may not be eligible for a mortgage at higher interest payments. This could reduce your ability to borrow.
A wide range of mortgage products are available, as well as a variety of elements used by lenders in determining their lending limits. Talk to an expert mortgage advisor if you’d like to get a better idea of what you can borrow to purchase a home.
If you pay £1,200 per month, they can help you determine your maximum mortgage. They can also help you determine the best steps to take to get a larger mortgage.
How big a home can I afford if I have £1,200 monthly to pay my mortgage?
Depending on the location, the size of your home that you can afford to buy with monthly mortgage payments of only £1,200 is a factor. A budget of between £175,000 and £200,000 can buy you a house with a garden in some areas. You might not be able to afford small apartments or flats in the more expensive areas.
Although a monthly mortgage payment of £1,200 may seem high, there are many variables that can affect your options in the housing market. Without specific financial information and regional preferences, it is difficult to determine what home your monthly mortgage payment will purchase.
How does a lender determine the amount of mortgage I can afford using £1,200 per month?
Most mortgage lenders use an affordability approach to lending after a thorough review of the market following the 2008 global credit crunch. This was to assess banks’ ability to continue normal operations during times of financial stress.
Instead of lending you 44.5 times your annual income, a lender will instead consider how much you can afford each month.
This calculation takes into account your regular outgoings such as gym memberships or utility bills. While debt servicing payments are taken into consideration, lenders may also wish to allow for some flexibility in the event that interest rates rise or the cost of borrowing your mortgage in the future.
Your chosen lender might decide that you cannot afford to repay £1,200 per month on a mortgage and offer you a lower amount, such as £1,000/month.
They could also tell you that they believe you can comfortably repay £1,500 per month on your mortgage. This would allow you to spend more money on house hunting.
Use an online mortgage calculator to get an idea of how much you can borrow based on these income multipliers.
How long will my mortgage last if I pay £1,200 per month?
A larger mortgage can be secured if a mortgage lender is able to confirm that you are able to afford a mortgage with monthly payments of £1,200.
£1,200 mortgage for a term of 30 years
You could get an additional £20,000 in mortgage debt by increasing your term from 30 years to five years and paying £1,200 each month. This could make the difference between a house and a flat, two or more bedrooms, or the place you can afford to live.
You may be eligible for a mortgage with a term of 35 years depending on your financial history, age, and deposit. A discussion with a mortgage advisor is a good way to understand the consequences of a longer-term mortgage and to make sure you are ready to repay £1,200 each month.
Talk to an expert advisor today about £1,200 mortgages
A qualified mortgage advisor can help you determine if you are financially able to afford a mortgage that has monthly repayments of £1,200. They can answer any questions you may have about your mortgage options and repayment capabilities.
Call today to get in touch or contact us for a quote. You can then relax and let us connect you with the most qualified mortgage advisor.