Use our mortgage calculator to quickly work out how much you could afford to buy your next home. With just a few simple details, we can show you how much you could be eligible to borrow, as well as breaking down your monthly repayments.
Our mortgage calculator also lets you quickly play around with different options, whether that’s extending or shortening the mortgage term length, as well as adjusting the interest rate in line with mortgages you may be eligible for.
|Your home or property may be repossessed if you do not keep up repayments on a mortgage.|
How much can I borrow?
The amount you could borrow will largely depend on your income. However, mortgage lenders will also consider any financial commitments you may have, such as outstanding loans, credit cards or debts.
**The borrowing amount we display is based on 4x 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.
Frequently asked questions
Do mortgage calculators require a credit check?
No, our mortgage calculator simply uses the information you enter (salary, income, deposit etc.) to calculate how much you may be eligible to borrow, along with the value of a home you could afford. You won’t even be required to enter your name.
Only when you apply for a mortgage will you undergo a full credit check, which will be marked on your file and potentially impact your credit score.
How are mortgage repayments calculated?
To calculate a mortgage’s monthly repayment, you’ll need to know the value of the home you’re buying, your deposit, the interest rate and the length of term.
- House value - £250,000
- Deposit - £50,000 (20% of the value of the home)
- Mortgage amount - £200,000
- Mortgage term – 30 years
- Mortgage rate – 2%
If the mortgage rate in this example was fixed for the length of the 30-year term, you’d pay 360 monthly instalments of £739.24. This pays off the £200,000 loan in full, along with a total interest amount of £66,126.
It’s important to remember that, as you begin to pay off your mortgage, the interest owed begins to fall in line with the outstanding amount on your mortgage that’s owed. This means you’ll slowly be charged less in interest as the years go on. During a fixed term however, you’ll be charged a fixed, regular amount.
|Year of mortgage||Mortgage balance||Total interest paid|
However, this system only works for a fixed term. For a variable rate, or if your rate were to change after agreeing a new mortgage deal, this would be subject to change.
Should I take the maximum I can borrow?
Just because you’re eligible to borrow a certain amount, doesn’t mean you should. It’s purely a judgement call for you, based on your personal financial situation, but you should consider any potential future impacts you may face.
For example, are you a couple buying a house but are planning to have children in the next few years? If so, you should consider the financial impact of one of you taking time off work, working part-time, along with potential nursery fees and other extra costs. If you’re expecting a situation like this, you may want to avoid stretching yourself by borrowing at your absolute limit, as you may later struggle to continue paying off your mortgage comfortably.
You should also consider the event of interest rates rising over the course of your mortgage term. If mortgage rates rose, your monthly repayments would also increase. Therefore, you need to ensure that you’ll still be able to comfortably meet your payments.
Only borrow an amount that you feel comfortable with. It’s your responsibility to meet your repayments. Failure to do so could result in significant penalties, or even having your home repossessed.
How can I drop an LTV band?
LTV is the loan to value ratio between the amount you’re borrowing and the value of the home you’re buying. LTV bands are typically split into increments of 5%, and with each band you qualify for new mortgage rates. This means that, the less you need to borrow against the property, the better your mortgage rate tends to be.
Therefore, if you can increase your deposit amount, or buy a cheaper property in relation to your deposit, you’ll drop into a lower LTV band. With each band you drop, you could receive a better mortgage rate, which will save you hundreds, potentially thousands, over the full term.