£1,500 a month mortgage repayment example, lenders to use and how to get the best deals
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.
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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. Use the calculator below now:
What is the monthly mortgage payment I can get for £1,500?
The following factors will affect the amount of money you can borrow when you have a monthly payment budget of £1,500:
- Mortgage term length
- Interest rate
- Method of monthly mortgage repayment
- Your mortgage lender
The length of your term and the mortgage interest rate are likely to significantly impact how much money you can borrow, with £1,500 as your monthly payment to pay for your mortgage.
The online mortgage calculator above can estimate how much 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 mortgage affordability checks with mortgage lenders, you must make more than £1,500 monthly 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.
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Example calculations – Use our online mortgage calculator
The amount you can borrow will depend on the type of mortgage you want, the loan’s length, and the provider’s interest rate.
We have a tailored online mortgage quote calculator you can use near the top of this page. If you need any more advice, speak to one of our team by clicking the below button:
What type of mortgage can you get for £1,500 per month?
Your budget will not affect the type of mortgage you can get, but your specific needs and circumstances will decide the exact product.
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 want to purchase a property to rent it out and make money from it.
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.
Enquire to learn more about the type of mortgage 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.
Before granting you the loan amount you require, lenders will consider various factors.
These are some of the factors:
- Affordability
- 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 how lenders view each point when considering your application.
We can get you approved for a mortgage in just 24 hours, start online below:
Factors that impact the amount of mortgage you can get with £1,500 a month
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 you can repay at £1500 per month over ten 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 your mortgage type, interest repayments will be required to ensure 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 more significant because you only pay the interest.
You will still owe the total 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 each lender sets interest rates. Lenders can offer different interest rates or loan amounts depending on how they apply their criteria.
Loan Corp can help approve you for your £1500 a month mortgage in 24 hours
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.
Call today or click the button below to find the best mortgage for your £1,500 monthly budget. All of our lenders are regulated by the FCA.