Mortgage calculator
Use our mortgage calculator and by inputting a few simple details, we can show you how much you could be eligible to borrow. Our handy mortgage rate calculator can also help you estimate how much your monthly repayments will be.
| Your home or property may be repossessed if you do not keep up repayments on a mortgage. |
How much mortgage can I get?
The amount you could borrow will largely depend on your income. However, mortgage lenders will also consider any financial commitments you may have, including outstanding loans, credit cards or debts.
^The borrowing amount we display is based on 4 times your income. Some lenders will use multipliers slightly lower or higher than this but we believe this represents a mid-point to give you a good indication of how much you may be able to borrow. In practice, lenders will base the maximum borrowing amount on an affordability assessment which takes into account your outgoings and committed expenditure. This may give a lower maximum loan amount.
View our other calculators
Remortgage calculator
Use our remortgage calculator to find out if you can save by remortgaging.
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If you’re over 55 and a UK homeowner, use our calculator to find out how much equity you can release.
Loan calculator
Our calculator can help you work out what your monthly repayments could be, based on what you want to borrow.
Stamp duty calculator
Our calculator shows you the result for each of the home nations, so you can easily see what applies for the location of your new property.
What is a mortgage?
A mortgage is a large loan that’s used to buy property like a house, flat or plot of land. You repay the amount you borrow, plus interest, over an agreed period.
A typical mortgage length in the UK is 25 years. But it can range from five years up to 40 years, depending on the lender, your age and what you can afford.
When you take out a mortgage, the property acts as security against the loan. This means that if you don’t keep up with your mortgage repayments, the lender can repossess the property and sell it to clear the debt.
What is a mortgage repayment?
A mortgage repayment is a regular monthly repayment that you, the borrower, pay back to the lender. With a repayment mortgage, it includes the amount you borrowed, plus interest. Interest-only mortgages work differently.
The mortgage repayment amount will be agreed by you and the lender at the start of your mortgage.
How do mortgage interest rates work?
When you take out a mortgage, the lender will charge interest on the amount you borrow. The interest will be a percentage of the amount you borrow and is usually added to your account on the first day of the month.
If you take out a fixed-rate mortgage, the interest and your monthly repayments will stay the same.
If you take out a variable-rate mortgage, the interest and your monthly repayments can change.
What is a mortgage calculator?
A UK mortgage calculator is a useful online tool to help you estimate how much you could afford to borrow and what it might cost you.
It can give you an idea of your mortgage options, whether you’re:
Find out how much you can borrow with our mortgage calculator, based on your salary
Our quick mortgage eligibility calculator^ can give you a good indication of the amount you could borrow based on 4 times your income. But, ultimately, it’s down to the individual lender to decide.
As part of an affordability assessment, lenders will check your credit report to see how you’ve managed debt in the past. It’s a good idea to check your credit report and get it into shape at least six months before you apply for a mortgage.
The size of your deposit makes a difference too. The larger your deposit, the more equity you’ll have in the property and the more likely you are to get a better rate of interest.
If you can get an agreement in principle (AIP) from your chosen lender, it will give you an indication of how much they’re prepared to lend you. And while it’s not a guaranteed mortgage offer, it’s a helpful way of showing sellers you can afford to buy and are serious about doing so.
How much mortgage can I afford?
When getting a mortgage, you’ll need to look at how the monthly payments will affect your budget and what you can afford to pay comfortably.
Our mortgage affordability calculator can help by showing you what your monthly payments would be for particular rates of interest. These are based on the value of the property and the size of your deposit.
You can adjust the interest rate and also change the deposit amount in our mortgage calculator. That way, you can see what difference saving for a larger deposit could make.
When working out how much you could afford to borrow, don’t forget mortgage fees and possibly stamp duty, as well as the impact of potential life changes. If you add to your family, for example, or change jobs, would you still be able to afford your mortgage repayments?
It’s better to borrow an amount you can confidently pay back, than overstretch and find yourself struggling further down the line.
How is a mortgage calculated?
When carrying out a mortgage assessment, lenders typically will look at:
- How much you want to borrow
- Your deposit
- Your employment status
- Income and outgoings
- Any existing debts
- Your credit report.
When looking at your credit report, it’s not just your overall score that potential mortgage lenders consider. They’ll also look in detail at:
- Any other recent loan or credit applications
- How much of your income is used to pay debts
- Your credit utilisation ratio – this shows how much of the credit available to you is already being used
- Your payment history
- Your credit history.
Lenders may also look to ‘stress test’ your ability to pay. Let’s say you have a two-year fixed mortgage with a low introductory rate. Could you afford the repayments when the mortgage returns to the standard variable rate?
What type of mortgage could I get?
The most common types of mortgages include:
Fixed-rate mortgage
With a fixed-rate mortgage the interest rate is fixed at a set amount over a specific length of time. Once the fixed rate period comes to an end, you’ll be automatically moved to your lender’s standard variable rate (SVR). This is typically more expensive.
Tracker variable rate mortgage
Monthly payments for a tracker mortgage track a few percentage points above another interest rate, usually the Bank of England base rate. This means they could go up or down throughout the course of your mortgage term.
Standard variable rate mortgage
The rate for a standard variable mortgage (SVR) is set by your mortgage lender. It can go up or down whenever they choose to change it. SVR rates tend to be higher than other mortgage rates.
Discount mortgage
A discount mortgage is typically offered as a discount on the lender’s SVR. So, if you’re offered a 1% discount for the first two years, your mortgage rate will be 1% lower than the lender’s SVR for that time.
Interest-only mortgage
With an interest-only mortgage you only pay back the interest each month. While monthly repayments are cheaper than a repayment mortgage, you’ll still owe the full amount you borrowed at the start.
To pay off this type of mortgage, you’ll need a plan in place. For example, you can build up a savings pot to pay off what you borrowed.
How much deposit do I need for a mortgage?
In an ideal world, as much as possible. A larger deposit means you’ll need to borrow less, so you’re likely to pay less interest overall.
Mortgage lenders will consider your loan-to-value ratio (LTV) – the amount you’re borrowing compared to the overall cost of the loan. Typically, the higher your deposit, the lower your LTV and the rate of interest you’ll be charged.
Some lenders have different rates for 100% mortgages, 95% mortgages, 90%, 85%, 80% and so on. It’s worth seeing if increasing your deposit, even by a few thousand pounds, could help you move down to a lower band and get a cheaper interest rate.
Read our guide on how to save for a mortgage deposit.
What mortgage can I get if I’m self-employed?
This will vary among lenders. When using our mortgage calculator, aim to get as close to what you think your annual salary would be.
It might also be helpful to use a mortgage broker, who can offer more specific advice.
Brokers are more likely to know what kind of calculations mortgage providers make. They’ll also know which ones are more willing to lend to self-employed people.
Get more information about self-employed mortgages.
What our expert says...
“Whether you’re a first-time buyer or are looking to upsize, our mortgage calculator can give you a good indication of what you may be able to borrow. You can adjust the deposit amount, mortgage term and rate of interest to see how affect potential mortgage payments.
Just be aware that lenders have tightened their affordability criteria in recent years. Our affordability calculator offers a ballpark figure on what you might pay for a mortgage. But the actual amount will depend on your chosen lender and their assessment of your financial situation.”
- The Editorial Team, Experts in personal finance, insurance and utilities
Frequently asked questions
How many times my salary can I borrow for a mortgage?
Many lenders will allow you to borrow up to 4.5 times your salary. There may be some lenders whose mortgage multiplier will stretch to 5 times your salary. But this isn’t common and depends on your circumstances.
How much do I need to earn to get a mortgage?
There’s not a ‘set amount’ you need to earn to get a UK mortgage. Instead, lenders will look at what you can afford to borrow on a case-by-case basis.
That said, some lenders will include a minimum of how much you need to earn before they’ll consider your mortgage application.
Should I take the maximum I can borrow?
It’s wise to only borrow an amount you’re certain you’ll be able to pay back. Failing to meet your mortgage payments could result in hefty penalties or even having your home repossessed.
When deciding how much to borrow, it also makes sense to consider how your circumstances might change in the future. For example, your ability to cover mortgage repayments could be affected by:
- Starting a family
- Redundancy
- A career break or one less income.
Do mortgage calculators require a credit check?
No, our mortgage calculator simply uses the information you enter to calculate how much you might be eligible to borrow. You won’t even have to enter your name.
Only when you apply for a mortgage will you undergo a full credit check, which will be marked on your credit file.
What credit score do you need for a mortgage?
There isn’t a specific credit score that you need to get a mortgage. This is because each of the three main UK credit reference agencies has its own scoring criteria. But, typically, the higher your credit score, the better your chance of getting a mortgage.
How much can I borrow if I have bad credit?
If you have bad credit, you may need to use a specialist lender. They could cap the amount of money they’re willing to lend you at 70-80% of the property value. They may also ask for a larger deposit than someone with a good credit rating and charge a higher rate of interest.
A mortgage broker could help, as they’ll be familiar with lenders who are willing to offer bad credit mortgages. Ideally, do what you can to improve your credit rating before you apply for a mortgage.
How can I drop an LTV band?
You can drop an LTV band by increasing the amount of your deposit, either by saving more or through buying a cheaper property. LTV bands may be split into increments of 5% and you qualify for a different mortgage rate within each band.
Which mortgage calculator is right for me?
The right mortgage calculator for you depends on what you’re planning to do:
- Buying a house for the first time
- Investing in a buy-to-let property
- Remortgaging to save money
- Unlock the equity in your home
- See how much stamp duty you may have to pay.
