£1,500 a month mortgage
You probably have an idea of how much you can afford to pay for monthly mortgage payments if you are looking to purchase a house. Although it may seem simple, there is no easy answer to the question of how much mortgage you can get with your budget.
This article will show you how much money you can borrow with a monthly budget of £1500. We will also discuss the factors that could affect the amount of the loan offered to you and how a mortgage broker can help make the most out of your budget.
It can be hard to figure out how much you can borrow per month with £1,500 because there are so many different mortgages and terms available from UK lenders.
Contact us today to speak with a mortgage lender to discuss what you can lend and how much the monthly mortgage payment will be. An online mortgage payment calculator can give you an estimated cost for the monthly payments.
What is the monthly mortgage payment I can get for £1500?
The following factors will affect the amount of money you can borrow when you have a monthly payment budget of £1,500:
- Mortgage term
- Interest rate
- Method of monthly mortgage repayment
- Your mortgage lender
The length of your term and the mortgage interest rate are likely to have the greatest impact on how much money you can borrow with £1,500 as your monthly payments to pay for your mortgage.
The online mortgage calculator can estimate how much mortgage you could get for £1,500 per month if you use a traditional repayment model.
Each mortgage broker will have different terms and interest rates. This is why choosing the right mortgage broker could impact how much you are able to borrow.
To pass affordability checks with mortgage lenders, you must be making more than £1,500 per month after taxes.
Lenders will consider your annual income when determining how much money they are willing to lend. Most lenders will offer 4.5 times your annual salary. However, some lenders may consider 5x in certain circumstances or up to six.
Use an online mortgage affordability calculator to calculate your maximum borrowing amount based on these income multipliers.
Example calculations – Use our online mortgage calculator
The amount that you can borrow will depend on the type of mortgage you want, the length of the loan, and the interest rate offered by the provider.
We have a tailored online mortgage calculator you can use near the top of this page. If you need any more advice, speak to one of our team right away
What type of mortgage can you get for £1,500 per month?
Your budget will not affect the type of mortgage that you can get, but your specific needs and circumstances will.
A commercial mortgage is a good option if you have a monthly budget of at least £1,500 and want to purchase a property for your company. A buy-to-let mortgage is another option if you are looking to purchase a property for the purpose of renting it out.
The repayment option is available if you’re looking to get a mortgage for your primary residence and have a monthly budget of at least £1,500.
Repayment of Capital and Interest
It would depend on your personal needs to choose the repayment option that is best for you. We can help you with this.
Make an enquiry to learn more about the type of mortgage that you can get for just £1,500 per month. These types of enquiries are handled by the advisors that we work with and they can help you choose the best mortgage for your needs.
How will other factors affect how much I can borrow to get a mortgage with £1500 per month?
Setting a budget is the first step to getting the mortgage you need to purchase the property you want, no matter how small or large is a sensible move. Before granting you the loan amount that you require, lenders will consider a variety of factors.
These are some of the factors:
- Deposit size
- Types of properties
- Your age
- Credit history
- Employment history
Each lender will have its own criteria for evaluating your application against the above factors. If you are self-employed, for example, one lender might assess your track record differently than another.
Our advisors have an in-depth understanding of the way lenders view each point when they consider your application. Get in touch to discuss these points further.
Factors that impact the amount of mortgage you can get with £1500
After you have established that mortgage lenders consider your monthly expendable income to be £1500 and that you meet the required criteria, there are still factors that could affect the amount of your mortgage loan.
- Mortgage term – The total amount that you can repay at £1500 per month over 10 years is much less than what you could repay over 30 years of the equal monthly payment.
If you can repay your mortgage over 30 years instead of 10, the term of the mortgage could potentially triple the loan’s size.
- Interest rates – Mortgages are subject to interest. This will need to be included in your affordability. Depending on which type of mortgage you have, interest repayments will be required to make sure that £1500 is not too much.
Most mortgages come with an initial fixed-rate period at a lower interest. You may need to remortgage after this period ends to make the most of your payments.
- Type of mortgage – Residential mortgages are typically repayment products. Each monthly payment contributes to the repayment of a portion of the capital borrowed and any interest accrued for that month.
While interest-only mortgages can’t be used for residential property purchases, they are often used for commercial and buy-to-let properties. The amount of mortgage you can get with a £1500 monthly payment will be greater because you only pay the interest. You will still owe the full loan amount at the end.
- Your lender – Every lender has its own criteria and interest rates. Your individual circumstances will determine how the loan amount is calculated and how interest rates are set by each lender. It is possible for lenders to offer completely different interest rates or loan amounts depending on how they apply their criteria.
How a mortgage broker can assist
Talking to a mortgage broker before you submit your application can help you get an idea of the mortgage lenders that would best suit your budget and/or affordability based on your personal circumstances. You might even be able to get an agreement in principle. This will allow you to narrow your search for homes that fit your budget.
Mortgage Brokers who specialise in helping people with less traditional circumstances, such as those who are self-employed, elderly, have a small down payment or have poor credit ratings, can help. They can help you secure the best deal that suits your circumstances and take the burden off of the application process. This could include liaising directly with solicitors or negotiating with estate agents.
Our brokers have extensive knowledge about the various lenders and how they can apply them to your particular circumstances. Contact us for more information.
To speak to someone who can help find the best mortgage for your £1,500 monthly budget, call today or click get a quote. All of our lenders are regulated by the financial conduct authority.
Our advisors have extensive experience in all aspects of mortgage lending. They can help you in any situation so contact us now.