£300 a month mortgage repayments, best lenders and how we can get you the best deals on your mortgage
This article will help you learn about mortgages that cost around £300 per month and the steps required to obtain one.
Monthly repayments can vary greatly depending on how much you deposit, the price of the property, the term of your loan and what type of mortgage you have.
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This article will focus on how much you can borrow when you have a monthly payment budget of £300. We’ll also discuss how a mortgage broker can help you find the right mortgage lender.
Check out our quick online mortgage calculator to get an idea of what you can get:
What mortgage amount can I get for £300 per month?
As mortgage brokers, we can provide mortgage advice and connect you to the best mortgage providers lending to suit your needs.
£300 per month could get you:
- 60% loan to value, 2 years fixed over a term of 35 years at 1.39%
- £45,000 90% loan to value, 2 years fixed over a 15-year term at 2.64%
- £150,000 75% loan to value, 2 years fixed over a 38-year term at 1.47%
This assumes the following:
- You do not have a bad credit history
- You can choose a longer-term mortgage
- Your loan amount is lower (a lower Loan-to-Value (LTV) ratio).
- Instead of having product fees added to your monthly expenses, you pay them upfront.
- A shorter product term is preferred (e.g. a 2-year fixed-rate mortgage) over one with a longer-term (5 years or more).
Bad credit is not always a problem, as specialist bad credit mortgage lenders are available. Our mortgage advisors will review your situation and match you with the right lender for your circumstances. We have specialist bad credit mortgage brokers on hand to help if you have poor credit.
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How much can I borrow for £300 per month?
A monthly budget of £300 will allow you to borrow between £50,000 and £100,000. The amount you can borrow will depend on how large a loan you require, the interest rate, and the total length of the mortgage term.
- Your repayments will increase the more you borrow.
- Higher interest rates mean higher payments.
- Your payments will be lower the longer you have the term.
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What factors determine my eligibility for a £300 per month mortgage?
Three main factors affect the monthly mortgage payment…
- What amount of money do you want to borrow?
- Its interest rate
- The term length
They are affected by…
What type of mortgage do you want?
There are two types of mortgages: ‘Repayment’ and interest only.
Repayment mortgage
Repayment mortgages have monthly payments that pay off the principal and interest. You will pay more at the beginning but less at the end.
Mortgages with interest only
The name interest-only mortgage suggests that your monthly payments will usually only cover the interest. This reduces your monthly payments but requires you to make a larger payment at the end of the mortgage (to repay the principal).
The mortgage amount
Your monthly payments will be lower the smaller your mortgage.
The mortgage term
Mortgages with a longer term reduce your monthly mortgage repayments, but you will pay more over the life of the loan.
To get a £300 monthly mortgage, you will need to borrow less money or to have a lower interest rate.
I have a low income – how much mortgage can I get for £300 per month?
It all depends on what you mean by ‘low’ income.
Many people believe that they won’t be able to get mortgages if they have a low income.
Some lenders may have income eligibility requirements, but others don’t. Some lenders will consider other income sources, such as benefits or freelance income.
You can find out more and see if you are eligible by looking at our guide for low-income mortgages.
FAQ’s
Eligibility required for a £300 a month mortgage
By choosing a low or long-term mortgage, you can get your monthly mortgage payments down to £300 per month.
What are the criteria lenders will consider before granting you a mortgage? Every lender is unique and will have their criteria. There are certain things all lenders will consider:
What amount of deposit do you have?
To get a mortgage, your deposit must be at least 5% (more often 10%) of the property’s price.
You will get better interest rates if you save more money for a deposit. This will also mean you’ll be able to borrow less, which will lower your monthly payments.
How much are you willing to borrow, and the cost of the property
You may have seen the term “loan-to-value” above. This refers to the amount of your property’s price you need to borrow as your mortgage payments will likely be lower if your loan value is lower.
Credit history
Your credit score will determine your options when choosing a lender. This will also affect the terms of your mortgage.
It’s possible to get the mortgage you need even with bad credit. An experienced broker can help you locate specialist lenders that will work with such cases.
Your income and your outgoings
Lenders will ask you to prove that you can afford the mortgage payments. Some lenders may also require you to have a certain income level before you are allowed to get a mortgage.
Lenders may treat different income types, like benefits, bonuses, and commissions.
If you are employed, you will need to present proof of your most recent payslips (last three months). You will be asked to show your most recent certified accounts if you are self-employed (up to the last 3 years).
How a broker could lower your monthly payments
As you can see, a £300 monthly mortgage is a delicate balance between mortgage size, interest rate, and term. You need the right income, credit score, and property to get one.
It can be hard to find a mortgage that meets all your criteria. Additionally, applying to the wrong lender could cause credit problems. The lender’s search for you will appear on your credit report when applying elsewhere.
A professional mortgage broker can save you all the hassle. Our matching service is designed to match you with a broker with the knowledge and experience necessary to help you find the right broker for your particular circumstances.
They’ll assist you in weighing all your options if you’re looking to lower your mortgage payments but don’t have the funds for a large deposit. Get in touch and we’ll set up a meeting with a lender that we know to discuss your options.
There are many types of mortgages that you can choose from
Capital repayment and interest-only are the most popular types of mortgages. Repayment mortgages require that you repay the interest and some capital each month. This means that you pay less interest over the entire mortgage term.
An interest-only mortgage is a mortgage that only pays interest every month. The monthly payment for an interest-only mortgage will be lower than a repayment mortgage. This is why it might be worth considering if you want to make only £300 monthly mortgage payments.
Remember that the interest-only mortgage will end, and you must repay the entire capital borrowed as one lump sum. You will need an approved repayment vehicle to meet your commitment.
This type of mortgage is commonly used for buy-to-let property. The landlord can use their rental income to invest and repay the capital at the term’s end.
View more related mortgage repayment articles:
- £400 a month mortgage repayments
- £500 a month mortgage repayments
- £600 a month mortgage repayments
- £700 a month mortgage repayments
- £800 a month mortgage repayments
- £900 a month mortgage repayments
Over £1,000 a month repayments:
- £1,000 a month mortgage repayments
- £1,200 a month mortgage repayments
- £1,500 a month mortgage repayments
- £2,000 a month mortgage repayments
- £5,000 a month mortgage repayments
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