Mortgage Affordability Calculator
How much can you borrow? Get a quick, easy, accurate estimates of what you could borrow using our mortgage affordability calculator. Plan your mortgage smartly!
Mortgage Affordability Calculator
Applicant 1
(If employed not through your own business, just input your basic salary)
Bonus / Commission / Overtime or Any Other Income
Applicant 2
(If employed not through your own business, just input your basic salary)
Bonus / Commission / Overtime or Any Other Income
Total Income of Applicants
£0.00
Monthly Debt Payments
Include credit cards, loans, hire purchase or any other monthly commitments
Total Per Annum
£0.00
Maximum Mortgageable Income
£0.00
You may be able to borrow between
£0.00
and
£0.00
This calculator can only be used as a guide. For an exact borrowing figure please contact us and we will provide a full review for you.
Please note that the estimates shown in this calculator are for illustrative purposes only. The calculator should not be relied upon as a confirmation of affordability. The calculator should not be used as a substitute for professional advice from a mortgage broker or financial adviser. The full market value of the property may vary and the actual monthly payments may be higher or lower than those shown. The calculator will help to provide estimates of what you’re considering and help give you an indicative guide to monthly costs.
Mortgage borrowing is a significant financial decision that individuals and families in the UK often face when considering homeownership.
A mortgage calculator can be a valuable tool in understanding how much you can afford to borrow, the required deposit, and the impact of your income on borrowing limits.
What is a Mortgage Calculator and How Does it Work?
Understanding the basics of mortgage calculators is essential before delving into their functionality. A mortgage calculator is a financial tool designed to provide estimates related to mortgage borrowing.
Key factors to consider when using a mortgage calculator include the accuracy of the input data, understanding the loan-to-value (LTV) ratio, and comprehending the impact of interest rates on monthly payments.
These factors are crucial in obtaining reliable estimations of borrowing capacity and potential mortgage repayment obligations.
Use our mortgage calculator to find out what you may be able to borrow.
How Much Can You Borrow with a Mortgage?
Calculating your maximum borrowing capacity is a fundamental step in the mortgage borrowing process.
A mortgage calculator can assist individuals in determining the amount they can borrow based on their financial circumstances. Factors such as income, credit history, outstanding debts, and the property’s value all play a vital role in defining the maximum borrowing capacity.
Factors affecting the amount you can borrow include the loan-to-value (LTV) ratio, which illustrates the percentage of the property’s value that lenders are willing to lend.
Understanding this criteria can provide individuals with insights into the potential loan amount and the required deposit to secure the property.
Determining the impact of your income on borrowing limits involves assessing the income stability, employment type, and any additional sources of income. Lenders analyze these aspects to gauge the level of risk associated with lending, which directly influences the borrowing limits for individuals.
What Deposit Do You Need for a Mortgage?
Understanding the importance of a deposit in mortgage borrowing is crucial for prospective homeowners.
A deposit serves as a financial contribution towards the property’s purchase and plays a significant role in securing a mortgage.
Calculating the required deposit amount for a property involves considering the lender’s specific criteria, the property’s value, and the selected mortgage product.
Options for obtaining a mortgage with a small deposit are available for individuals with limited savings. Certain mortgage products cater to individuals with smaller deposits, enabling them to fulfill homeownership aspirations with manageable deposit requirements. Exploring these options can provide prospective homeowners with viable pathways to mortgage acquisition.
Can I Afford a Mortgage Based on My Income?
Assessing your affordability using mortgage calculators is a prudent approach in determining financial feasibility. By inputting income details and expenses, individuals can utilize a mortgage calculator to gauge their affordability, ensuring that mortgage repayment obligations align with their financial capabilities.
Understanding the role of monthly outgoings in mortgage affordability is vital in ensuring sustainable homeownership. By analyzing the impact of existing financial commitments on mortgage affordability, individuals can make well-informed decisions and avoid potential financial strain.
Special considerations for self-employed individuals seeking a mortgage involve providing comprehensive financial documentation, demonstrating consistent income, and showcasing the stability of their business. Lenders assess these aspects to gauge the affordability and risk associated with lending to self-employed individuals.
Tips for Increasing Your Borrowing Power
Here are a few things you can do to increase your borrowing power:
Increase your income: If you can increase your income, you will be able to borrow more money.
Reduce your expenses: If you can reduce your expenses, you will have more money available to repay your mortgage.
Improve your credit score: A good credit score will help you get a lower interest rate, which will save you money in the long run.
Increase your deposit: A higher deposit will reduce the amount of money you need to borrow, which will also lower your monthly payments.
Ready to speak to an adviser?
Call us today and our experts can accurately calculate monthly payments and deposit required for you to move forward.
About Alexander Southwell Mortgage Brokerage
Alexander Southwell Mortgage Brokerage is a leading mortgage brokerage in the UK. We specialise in helping people to buy shared ownership properties. We offer a wide range of services, including:
- Free mortgage advice
- Expert guidance on shared ownership schemes
- Help with finding a suitable property & help you understand buying a home with shared ownership
- Assistance with applying for a mortgage
Get Started Today
Use our Shared Ownership Mortgage Calculator to get an estimate of your monthly payments. Then, contact us for free mortgage advice. We can help you to find a suitable property and apply for a mortgage.
