Mortgage calculator
Use our mortgage calculator to work out how much you could borrow. Our mortgage rate calculator can also help you estimate your monthly repayments to help you plan your budget.
| 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.
Equity release calculator
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 the amount 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 repayment?
It’s a regular monthly sum that you, the borrower, pay back to the lender. With a repayment mortgage, it includes a portion of the amount you borrowed plus interest.
Interest-only mortgages work differently. Here, you only repay the interest each month but then have to pay back the entire amount you borrowed at the end of the mortgage term. These types of mortgages are generally aimed at buy-to-let investors or others with a clear plan for how to repay the mortgage, such as pensioners taking out retirement interest-only (RIO) mortgages.
The size of your mortgage repayments will be agreed by you and the lender at the start of your mortgage.
Our mortgage repayment calculator can help you figure out how much your monthly payments might be depending on your deposit, property price, mortgage length and interest rate.
How do mortgage interest rates work?
When you take out a mortgage, the lender will charge interest on what 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 for the duration of your fixed period – which means no nasty surprises or having to worry about your rate going up. 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 work out 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 four 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 bigger 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, you’ll have a good indication of how much you’ll be able to borrow. 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 – particularly if you’re a first-time buyer.
How much mortgage can I afford?
When getting a mortgage, you’ll need to look at how the monthly payments will affect your overall budget and what you can afford to pay comfortably.
Our mortgage affordability calculator can help by showing you what your monthly payments would be based on different interest rates, the property value 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 the difference that saving for a larger deposit could make.
When working out how much you could afford to borrow, don’t forget mortgage fees and – if it applies to you – stamp duty, as well as the impact of potential life changes. If you had a baby or changed jobs, for example, 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 will typically 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 – how much of the credit that’s currently available
- Your payment history
- Your credit history.
Some lenders may also ‘stress test’ your ability to pay. This means checking whether you’d still be able to afford your mortgage repayments if the interest rate went up. The exact amount you’ll be stress tested at can vary depending on the lender and mortgage deal, but most base it on their standard variable rate plus 1%.
How much deposit do you 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 look at your loan-to-value ratio (LTV) – the amount you’re borrowing compared to the overall cost of the loan – when considering your application. Typically, the lower your LTV, the lower the rate of interest you’ll be charged.
Some lenders offer different interest rates for 100% mortgages, 95% mortgages, 90%, 85%, 80% and so on. It’s worth seeing if increasing your deposit by a few thousand pounds could help you move down to a lower band and get a cheaper interest rate.
You can play with the interest rate in our mortgage calculator to see how much a seemingly small decrease in rate could save you in the long run.
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, input the most realistic annual salary you can for the most accurate results.
It might also be helpful to use a mortgage broker, who can offer more specific advice. They should know what kind of calculations mortgage providers make, as well as 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 buying a home or remortgaging, our mortgage calculator can give you an indication of what you may be able to borrow and how much it may cost.
“A multitude of factors go into a lender’s decision on how much you can borrow when you actually apply, so be aware that it could look different in the real world. Nevertheless, the calculator can give some pointers so you’re at least in the right ballpark.”
- Guy Anker, Personal finance and insurance expert
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 that will stretch to five times your salary. But this isn’t common and depends on your circumstances and sometimes your job.
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 they think you can afford to borrow on a case-by-case basis.
That said, some lenders do require you to have a minimum income 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 see you get into serious financial difficulties or even have 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.
You’ll only undergo a full credit check when you apply for a mortgage. This 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 (Equifax, Experian and TransUnion) 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. It might cap the amount of money it’s willing to lend you at 70-80% of the property value. It may also ask for a larger deposit than would be required from someone with a good credit rating, and charge a higher rate of interest.
A mortgage advisor could help, as they’ll be familiar with those lenders who are willing to offer bad credit mortgages. Ideally, do as much as you can to improve your credit rating before you apply for a mortgage.
How can I drop into a lower LTV band?
You can drop an LTV band by increasing the percentage of the property price covered by your deposit, either by saving more or through buying a cheaper property. LTV bands may be split into increments of 5% and you’ll often qualify for a different mortgage rate within each band.
Which mortgage calculator is right for me?
There are all sorts of mortgage calculators, each doing slightly different things. The calculator at the top of this page shows you:
- How much you might be able to borrow
- Your LTV
- Your monthly repayments depending on deposit, property value, mortgage length and interest rate
But if this isn’t what you were after, you could also check out our:
- Remortgage calculator – shows you how much you could save by switching to a new deal
- Equity release calculator – shows how much equity you could potentially release from your property
- Stamp duty calculator – shows how much stamp duty you may need to pay if you buy a new property.
