What size mortgage can I afford?

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By Beehive Money

Row of terrace multicoloured houses

Working out what size mortgage you can afford can seem like a daunting task. It’s a big decision but that doesn’t mean that the process has to be tricky. Mortgage advisers will work hard to make the whole process as simple as possible for you. They’ll be searching the mortgage market and comparing products for you to find a range of deals for you to choose from that suit your circumstances. They’ll look at every detail, including individual features of each mortgage, what they cost and that all-important small print.

What size mortgage you’ll be able to get will depend on how much you can afford to pay back on a monthly basis. As well as your income, your mortgage adviser will need to see how much deposit you’ve saved up to put towards your mortgage as well as what other debts or borrowing you have already. The amount of deposit needed will depend on the property you want to buy, but as a rule, the larger the deposit the better mortgage deal you are likely to get, and lenders will look for anything from 5% upwards.

Can I get a mortgage?

Talking to an adviser will mean you get professional advice and personal service and they’ll be able to answer burning questions such as ‘can I even get a mortgage?’. Your mortgage adviser will take you through the whole process and explain everything along the way over the phone and via email. They’ll be able to let you know whether you’re able to get a mortgage in principle based on your affordability, credit score and the amount of deposit that you have. And, if you’re not quite there yet, they’ll be able to tell you a rough number that you could get your deposit up to so that you can access more mortgage deals.

We’ve also covered the mortgage application process in a separate helpful guide so head there to check it out if you think you’d like a little more information about it all before you dive in.

How much will my monthly mortgage payments be?

Use our mortgage calculator to work out what your monthly mortgage repayment is likely to be depending on how much you plan to borrow and the rate you can get. Remember to also ensure you’ll have enough left over for your other monthly bills, such as home insurance, utility bills, grocery shopping and any other personal bills you’ll have.

Why not use our downloadable budget planner to work it all out? It’ll help you see how much you can spend, save and keep for yourself each month and whether you can afford your potential mortgage repayments and the upkeep of running a house. Remember, think about what would happen if interest rates went up after your mortgage deal was over. Would you be able to comfortably afford an increase in your monthly repayments?

If you’re not sure about buying a house at all after looking at your finances, read our article on the things to consider when it comes to becoming a homeowner which compares renting and buying a house. Or check out our guide on how to save for a deposit if you’re sure you’re want to buy and just need a little more in the tank before you dive in. Good luck on your house buying journey and remember, Beehive Money’s here for you along the way. 

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