How much can I borrow?

Mortgage affordability calculator

Mortgage affordability is the term used when lenders assess whether you can make the monthly repayments on the amount you’re borrowing. Our “How much can I borrow calculator” is designed to give you a quick idea of the likely mortgage amount you can borrow based on your income.

What determines how much you can borrow?

Calculating exactly how much you can borrow depends mainly on your income, but also on a number of things, such as:

• How much you spend each month on regular commitments
• Whether you’re paid a basic salary, a basic salary plus bonus, commission or overtime
• If you’re self employed
• The amount of deposit you have
• Your age and whether you are looking to borrow beyond your retirement date
• Your credit rating

Can I borrow more than the calculator says?

Sometimes it can be possible to borrow more than the calculator suggests and that’s where the expertise of a mortgage broker comes in. Our partners at L&C are sometimes able to arrange higher borrowing by taking your own individual circumstances into account.

All potential borrowing is subject to affordability checks and credit status.

Does the amount you can borrow vary by lender?

Yes. One of the most important factors in determining how much you can borrow is the lender. Each lender has different criteria and L&C brokers who, last year successfully placed mortgages with 59 different lenders, are perfectly placed to match the right lender to your borrowing requirements.

Do mortgage brokers charge?

Ordinarily yes, charging up to £500. But, we’ve partnered with fee free mortgage brokers L&C so you get expert advice at no cost.

How much will my mortgage cost?

Not sure how much your mortgage is going to cost you every month? Use our mortgage repayment calculator to get a better handle on the payments you’re likely to face.

The cost of your mortgage depends on several factors, including how much you’re borrowing, your mortgage term, and the rate of interest you’re paying.

How do I compare mortgage deals?

Comparing mortgages isn’t easy. Sometimes deals look attractive because they have a low initial rate, but you also need to take into account any fees that come with the mortgage deal. Our mortgage partners, L&C, recommend annual cost as the best way to see which mortgage deal offers the best value for the size of mortgage you’re looking to take.

This is how L&C calculate the annual cost:

• They add up all the fees associated with the mortgage deal and deduct any cash back to find total fees
• They then divide the total fees by the number of months the initial mortgage rate lasts to find the total fees per month
• They add the total fees per month to your monthly mortgage payment and multiply by 12 to calculate the annual cost

By comparing mortgage deals looking at annual cost you can see which one would be cheapest for you taking into account fees as well as the interest rate. The annual cost only applies to the initial deal as its always best to consider switching once the initial deal is over to see if you could save money.

How do I find the best mortgage rate?

This depends on the type of mortgage you want, your deposit, lender fees and more. Banks and building societies change their mortgage rates quite frequently, so it’s always best to use an expert, fee-free broker to do hard work for you. If you want to get an idea of the best rates available today, see our review of this months best mortgage rates.

Why get a mortgage with L&C?

If you’re not sure which mortgage deal is likely to be most cost-effective for you based on your individual circumstances, L&C’s expert advisers can run you through the available options to make sure you’re getting the best deal possible.

We have teamed up with L&C to bring you FREE mortgage advice. No hidden costs, just great service. Use the online mortgage finder or speak to an advisor today.

When should I apply for a mortgage?

The best advice is to start the process before you start seriously looking for somewhere to buy. Most estate agents and home sellers will expect you to have a mortgage agreement in principle (AIP) when you make an offer. Once you have an offer accepted on a property, you make your full mortgage application.

Is an AIP different to a mortgage calculator?

Yes. A mortgage calculator is a great way to get a quick idea of how much you may be able to borrow, but it’s not as personalised. Your AIP is also a formal document that you can use when you’re considering making an offer on a property. Arrange your AIP today.

What if I don’t pass AIP eligibility checks?

If your first decision in principle is refused, it doesn’t mean you can’t get a mortgage with another lender. But, it is important to understand why you didn’t meet the eligibility criteria. Ideally, you would resolve these issues before you try again. Being in the strongest financial position increases your chances of securing the most competitive mortgages.

How reliable is a mortgage in principle?

A mortgage in principle does not guarantee that your application for a mortgage will be accepted. Nor does it make any guarantees about the amount that you can borrow. That’s because the initial checks are limited and the lender doesn’t have a full view of your financial situation.

What mortgage fees are there?

The exact fees you’ll need to pay will depend on the lender and your circumstances. When you take out a mortgage you can expect to pay on average £1,078 in mortgage costs. Some lenders ask you to pay the fees up front; others add it to the mortgage. See our mortgage fees & costs guide for more detail. Get free mortgage advice from our partners at L&C mortgage brokers.

How do I get a mortgage?

You can start your mortgage online with L&C’s mortgage finder to see the deals you qualify for and how much you can borrow or speak to an expert adviser at L&C now on 0800 073 2326. They are open 9-8 Mon-Thurs, 9-5.30 Fri, 9-5 Sat, 10-4 Sun.