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£2000 a month mortgage

Author: Myles Robinson - Expert Finance Advisor

Posted: Jun 20, 2022

£2,000 a month mortgage

You may believe that it is easy to calculate the size of your mortgage if you have calculated how much you can spend each month on a mortgage. It’s not as simple as it seems.

There are many factors that will play a role. An online mortgage calculator can give you an estimated quote but it would be better to establish an online mortgage advisor.

Contact today for mortgage advice to find out how much mortgage you can get for as little as £2,000 per month. We’ll walk you through the various variables and show you how working with a specialist mortgage lender can save you time and money.

Use our quick online mortgage calculator to get the best idea of what you can afford.

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What kind of mortgage can you get for £2,000 a month?

We are often asked by customers what kind of mortgage they might be able to get for as low as £2,000 per month.

Mortgage providers lending actually look at more variables than the amount you spend each month. Although having a high income is a benefit, there are other factors that will determine whether or not you get a loan. Each provider has its own terms.

We can provide mortgage advice for free and we have a few mortgage providers lending this amount so we can ensure you receive the best interest rate and lowest monthly mortgage payment available on the mortgage market.

How big a mortgage can you get for £2,000 per month?

You could borrow between £420,000 to £500,000 based on the income multiples lenders usually use. However, the exact amount depends on many factors.

There is no one-size-fits-all approach to mortgages. Lenders will look at what you can afford to spend each month. Having £2,000 to put towards mortgage repayments is a good start. But it gets more complicated.

No more self-certification mortgages. Lenders now need to be more careful about eligibility criteria. They will consider a variety of factors before deciding how much loan to make.

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What mortgage amount can I get for £2,000 per month?

Many mortgage lenders limit their lending to 4.5x your annual income, although some are offering higher rates. These lenders will lend you up to £240,000 if you have a salary of at least £60,000 per year.

If you have the funds to spare for the mortgage, a UK lender might offer you a mortgage between£100,800 & £151,200. However, this will vary depending on how long the term is and what interest rate you choose.

Some lenders may lend between £117,000 to £180,000. If you are offered favourable rates, your money could go further.

Use an online mortgage calculator to calculate your maximum borrowing amount based on these income multipliers. Even better, use our online mortgage advisor for free advice.

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What does the length of the term mean?

Simply put, the longer your term, the less you’ll pay each month. However, interest payments will mean that you will pay more over the term. Your £2K monthly mortgage may be more affordable. However, the length of your term will depend on your circumstances and needs.

How much mortgage can you afford if I earn £2,000 per month?

The UK’s average monthly cost of £2,000 after tax is around £31,000 per annum.

The mortgages available to you, if you have this income, would be between £139,500 – £186,000. The UK lenders typically limit their lending to 4.5 to 6 times the borrower’s salary. However, it is more difficult to find a lender who will offer the best rates if you need to borrow 6 times your income.

How can I get a mortgage for £2,000 per month?

We have already talked about how much you would need to earn to qualify for a £2,000 monthly mortgage. But, here are some other factors that the lender might consider when determining your eligibility for a home loan with these specific monthly payments.

  • How to make money: Expert advice may be needed if your monthly £2,000 mortgage payments are from self-employment or other sources. There are lenders that offer mortgages with bonuses or commissions.
  • Your outgoings Some lenders may not be willing to lend you a £2,000 per month mortgage if there are significant outgoings such as outstanding loans and dependent children.
  • Will another person be named on the mortgage? You could borrow more on a combined mortgage.
  • Access your credit report: You can find access to your credit reports and get free trials by clicking the link below.

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How can I prove my income to get a £2,000 per month mortgage?

You have enough income to pay £2,000 each month towards your mortgage. How can you prove it to the lender?

Most mortgage lenders will require that you do the following:

  • A letter from your employer verifying your employment – preferably a P60
  • The last three months of payslips.
  • Your passport or driving licence
  • Bank statements for the past three to six months.

What loan-to-value (LTV) ratio should I expect for a £2,000 monthly mortgage?

It will all depend on the amount you deposit and what the lender requires. A 10% deposit is sufficient to obtain a mortgage for a UK residential property. In some cases, you may need 5%.

Lenders may ask you to deposit more than the minimum amount if they believe your risk is increased by factors like your age or credit history. This can happen even if your monthly income is sufficient to pay your £2,000 monthly mortgage payments.

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Factors that affect borrowing amount

Lenders will look at your credit history and spare income per month. There are also key criteria. Let’s now take a look at these key criteria and how they could impact how much you can borrow.

Income

One of the most important limiting factors for larger mortgages is your annual income. Most lenders cap the amount that you can borrow based upon a multiple of your income. Lenders use a multiplier of 4.5. If you have an annual income above £50,000, your maximum loan amount will be £225,000.

Higher-income multiples are accepted by some lenders, sometimes as high as 6 times the income. However, these lenders tend to be more specialists than the banks and building societies. A broker who is familiar with these lenders will help you get the best deal if you feel that you have £2,000 per month to pay for your mortgage.

Size of deposit

How much money you can borrow will depend on how large a deposit you are able to make. LTV is a measure of how attractive you are to lenders. This will also affect the interest rates that you can get. You can also get a larger loan for the same amount each month by reducing your monthly payments.

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Mortgage term

The mortgage term is another thing you should consider when calculating your monthly payments. Consider the mortgage term. If you are looking at a mortgage for 20 years, your monthly repayments will be much higher than if you take out a loan for 30 years. You could borrow more for £2,000 each month by extending the term of your mortgage

Types of employment

As long as you have the documentation and track record to support it, whether you are employed or self-employed shouldn’t affect how much you can borrow. Self-employed recently, with no three years of financial records, could make you riskier. This could lead to lower rates and a decrease in the amount of mortgage you can get for £2,000 per month. This is where a broker can assist you in finding the right lender for your situation.

The type of mortgage

When calculating how much mortgage you could get with £2,000 per month, another factor to consider is the type of mortgage you desire.

First, you need to decide whether you want a repayment or an interest-only mortgage. A monthly interest-only mortgage will reduce your monthly payments by up to £2,000. However, you must also consider a solid repayment plan for the capital loan amount.

Another thing to consider is whether you want a fixed rate or a variable one. Fixed rates can tie you in more and make it more difficult to compete, but if your monthly mortgage payments are limited to £2,000 per month, a fixed-term mortgage will give you more security and certainty for the fixed term.

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Talk to an expert broker for £2,000 per month mortgages

Are you unsure and want to know how much mortgage you can get for £2000 per month? Contact us or make an enquiry today for the best rates.

Relax and let us do all the work to find the best mortgage advisor for you. There are no fees and no obligations.

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