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£400 a month mortgage

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Jan 5, 2023

Fact Checked By:
David Nicholson - Finance Editor

£400 a month mortgage repayment examples, guides and how to get one quickly

We often get asked, are mortgage providers lending £400 a month? What would the monthly repayments be on a mortgage? As mortgage brokers, we are here to help.

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The Office for National Statistics estimates that average UK households spent about £625 per month on their mortgage during 2017-2018.

Why not try our online mortgage calculator to get an idea of what you can afford:


How to get a £400 a month mortgage?

This article will explain how monthly repayments on your mortgage work and what you may need to do to obtain a mortgage for £400 per month.

Are you interested in a £400 per month mortgage? Reach out to one of our experts, who will help you determine what is possible, click the button below:

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Can I get a mortgage at £400 per month?

Yes, although £400 is lower than the average monthly mortgage payment for a UK property, our mortgage providers can help you find the best deal.

Many factors could influence the amount of mortgage you receive. It’s hard to provide a definitive answer.

If you have a tight budget, obtaining an agreement in principle will be a great idea before you begin looking for property.

A mortgage broker can help you find the right property, regardless of your budget.

The following examples will show you how much money you can borrow to get a mortgage within your budget.

  • A standard repayment mortgage is taken
  • The term of a mortgage is 25 years
  • The interest rate is 2.5%
  • You have made a 10% deposit

Monthly payments of around £400 could net you approximately £75,000

Monthly payments of around £450 could net you approximately £82,000

Monthly payments of around £500 could net you approximately £91,000

These figures are not intended to replace the assumptions made above. Your personal circumstances will also impact how much you can borrow.

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What factors determine my eligibility for a £400 per month mortgage?

Two things impact how much your monthly mortgage payments are:

  • The amount you borrowed
  • The interest rate you pay for it

These are then affected by the following factors

  • What type of mortgage do you get? There are generally two types of interest: ‘interest only’ or repayment.
    • Interest-only Mortgage: Monthly payments on an interest-only mortgage are lower than on a repayment mortgage. However, you will still need to repay the entire loan amount (less the interest) at the end.
    • Repayment mortgage: In a repayment mortgage, your payments cover the loan as well as the interest.
  • The amount of your mortgage. The smaller the loan, the more you will have to pay.
  • The term for the mortgage: Generally speaking, the longer the mortgage term, the lower your monthly payment, but the greater the amount you pay over the life of the loan.
  • How to pay your arrangement fee ‘upfront’. Some mortgages advertise that they are free of fees, but the truth is that these fees are included in your monthly payments. You may have to pay more each month if you don’t pay your fees upfront.

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What mortgage is available for £400 per month?

We now better understand some factors that influence your monthly mortgage cost. Let’s look at rough numbers based on mortgages currently in effect at the time we write this article.

£400 a month could get:

  1. £132,000 60% loan to value, 2 years fixed over a term of 35 years at 1.39%
  2. £59,000.00 – 90% Loan to Value, 2 Year Fixed, 15 Year Term at 2.64%
  3. £90,000. – 90% LTV at a fixed rate of 2.2% for 2 years.

This assumes that:

  • You have a good credit rating
  • A lower loan-to-value
  • A longer mortgage term
  • A shorter product term – i.e. You’d get the best rates for a short-term, fixed-rate mortgage.
  • Your product fees are paid upfront – i.e. If you choose not to pay your product fees upfront, they will be included in your monthly payments. However, this would cost you more as interest would accrue.

These two cases would cost about £25 per month more for a five-year fixed-rate mortgage. A longer fixed rate creates more uncertainty, so lenders add more ‘headroom’ to offset any possible interest rate increases.

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Is it possible to get a £400 monthly mortgage for a 30-year term?

Possibly, it all depends on how much money you borrow and what the interest rate is on the loan.

You’d probably be paying a lower interest rate because 30 years is slightly more than the average 25-year mortgage term. This will increase your chances of getting a mortgage below (or at) the £400 mark.

This assumes that your credit score is clean and that no other factors could make a lender view you as a potential risk.

I have a low income – What mortgage amount can I get for £400 per month?

Many people with low incomes believe they won’t be able to obtain a mortgage. However, there are low-income mortgages.

While a few lenders have minimum income caps, most lenders don’t. Many lenders will consider other income, such as benefits and freelance work.

If you have a lower income and are interested in how much mortgage you could get for £400 monthly, drop us a line. One of our expert advisors will be happy to look at your situation.

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Where can I find a £400 monthly mortgage calculator?

There isn’t a calculator that’s made explicitly for £400 monthly mortgages.

Use our online mortgage repayment calculator to determine how much a mortgage will cost. This calculates interest rate changes and loan amounts.

Factors that affect how much you can borrow

Lenders use a multiplier of 4.5 times your annual income to determine the average mortgage loan. However, this number can be adjusted to reflect any of the following circumstances. These largely fall under two categories:


  • The length of the mortgage term. Longer terms may allow you to borrow more money. The tables below show how this can affect your borrowing.
  • Interest rate – Rates vary between lenders. The rate you are offered will depend on your ability to meet each lender’s criteria. These tables show how important it is to find a competitive rate for a tight budget.
  • The type of mortgage can impact how much money you can borrow and the monthly repayments. However, most residential mortgages are repayment-based, while interest-only mortgages tend to be used for buy-to-let purchases.
  • Type of property – Lenders may reduce their lending if it is not standard construction.
  • Lender criteria/deals: Each lender has its own criteria and the amount they will lend to you can be affected by how well you meet these criteria. Your budget may be able to stretch further with certain lenders than with others.

Personal circumstances

  • Income/affordability: Lenders consider both your income and your outgoings to determine affordability
  • Your employment status – Some lenders may rate self-employed income less favourably than income from an employee, which could impact the amount you are offered.
  • What amount of deposit do you have? Although some lenders will accept as little as 5% deposit, providing more will increase your ability to borrow. This will reduce the loan-to-value (LTV).
  • Credit score – A poor credit score can impact how much money lenders will offer you. However, there are bad credit lenders who may be able to help.
  • Your age – In addition to the impact of age on the maximum term of your loan, some lenders will also reduce the borrowing limit for older applicants if they cannot pay their monthly income during the loan term.

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How to get the most out of a lower budget

The longer the term and the lower the interest rate affects how much money you can borrow. The cost of property in the UK is on the rise and it might still be challenging to purchase the home of your dreams if you have a monthly budget of between £400-£500.

There are many home ownership options that you can use to expand your options.

The Help to Buy Equity Loan Scheme

The scheme allows applicants to borrow as much as 20% (or 40% in Greater London) to pay a deposit. It is a government loan that is interest-free for the first five years. A 5% deposit is required. However, a 25% deposit can significantly increase your ability to borrow. Let’s say, for example, that we take the following:

  • A standard repayment mortgage is taken
  • The term of a mortgage is 25 years
  • The interest rate is 2.5%
  • After you have deposited 5% and borrowed 20% more, the following:

Monthly payments of around £400 could net you approximately £88,000

Monthly payments of around £450 could net you approximately £98,000

Monthly payments of around £500 could net you approximately £108,000

Remember to take into account that loan repayments will be due starting in year 6.

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The First Homes Scheme

This scheme allows first-time buyers and key workers to purchase properties at a minimum of 30% (and sometimes up to 50%) below the local market value. With a monthly budget of £400 to £500, you could buy a home worth £100,000.

While developments are not available in all parts of England, there is a strong possibility that the number of homes will increase.

*Please note that house prices can vary depending on the property type and location.

The Shared Ownership Scheme

This scheme allows applicants with a lower budget to buy a portion of their home (between 10% and 75%) to acquire a more expensive property than the mortgage they can obtain.

You can increase your ownership of the property by increments of as little as 1% each time until you own the entire property. Remember that you will have to pay rent to the housing association that owns the remainder of your home. More information on the Shared Ownership scheme can be found

View more related mortgage repayment articles:

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