£60,000 Mortgages

Wondering whether you can get a £60,000 mortgage, and how to find the best deal? In this article we’ll look at everything you need to know, including how using an experienced broker can help speed up the application process.

How much you need to earn to get a £60,000 mortgage

It depends on your personal circumstances and the lender you approach, but in general most lenders would be prepared to offer a mortgage of this size to someone with an income as low as £15,000 or even £10,000 per year.

Most mortgage lenders base their calculations on a multiple of 4 or 4.5 times your annual salary, so for a £60,000 mortgage you’d need an income of £13,000 to £15,000. But some will go up to five or even six times your annual salary. The table below illustrates how this works.

Of course, it isn’t quite as simple as that – a lender will look primarily at both your annual income and outgoings before deciding how much you can borrow. In terms of what interest rates you may be offered, this will be determined by a number of factors including your credit score, employment status, and whether you’re paying off credit cards or any other debts. 

If you’d like to find out how much you may be able to borrow, based on your own annual income, take a look at our affordability calculator below.

How a broker can help with this size mortgage

When it comes to taking out a mortgage, using a broker can be really helpful. A broker will have access to a wide range of deals from different lenders, and they’ll be able to match you with the one that’s right for your circumstances. They’ll also be able to help you compare different deals and negotiate with lenders on your behalf.

If you get in touch we can arrange for a broker we work with to contact you straight away and discuss your requirements in more detail.

How much you can expect to repay monthly

As the table below suggests, monthly repayments for a £60,000 mortgage could range from anywhere between £330 to just under £1,100 per month. But this could vary further depending on the term you choose and the interest rate offer from the lender.

Your disposable income is one of the most important factors when it comes to getting a mortgage, so it’s worth doing some research and finding out what kind of monthly repayments you can realistically afford before you start looking at properties.

When it comes to working out how much you’ll need to repay each month, there are a few things that need to be taken into account. These include:

The term of the mortgage

The longer the term, the lower your monthly repayments will be. However, you’ll pay more interest overall than you would on a mortgage with a shorter term.

Here is a simple table showing how the length of your mortgage term could affect your monthly repayments.

These figures are estimates only, using an interest rate of 3%. The actual repayments on a £60k mortgage will differ across lenders and depending on your personal circumstances.

Your credit score

The higher your credit score, the better your chances of getting a good deal on a mortgage. If you’ve had bad credit in the past, this won’t necessarily mean you won’t get approved for a mortgage – it really depends on the severity of the issue – but it could limit the number of lenders willing to look at your application and, as a result, the interest rate you’re likely to be offered.

Your deposit

Most lenders will ask for a minimum deposit of between 5%-10% of the purchase price of the property. It may be that you already have a large amount of equity available within your current home and simply need to borrow £60,000 in order to complete the next purchase.

If you have a large deposit, you’ll be able to get a better interest rate and you’ll also have more negotiating power when it comes to the terms of your mortgage.

The interest rate you’re paying

The interest rate is one of the most important factors in determining how much you’ll need to repay each month; and the rate you’re offered depends on the other factors we’ve looked at here. In the calculations above we’ve assumed an interest rate of 3%, based on the average interest rate for a first time buyer with a 10% deposit.

The type of mortgage

The type of mortgage you choose will also affect your monthly repayments. With a fixed rate mortgage, your interest rate is set for a certain period of time – usually two to five years – and your monthly mortgage repayments will remain the same throughout this period, even if interest rates rise (or fall).

With a variable rate mortgage, your interest rate can rise or fall, depending on the Bank of England’s base rate. This means that your monthly repayments could increase or decrease as well.

You can use our repayment calculator below to see how the repayments could work out for you using a range of different interest rates and terms.

Finding the right broker for a £60,000 mortgage

If you’re looking to take out a mortgage for £60,000, then you’re likely to have a lot of options, particularly if you have a good credit score. With that in mind, it’s important to make sure you get the best mortgage deal available, so you don’t end up paying more than you need to.

Our broker-matching service can match you with the right broker whatever your circumstances. Whether you’re a first-time buyer, looking for a buy-to-let mortgage, have bad credit or a small deposit, just get in touch or call us on 0808 189 0463. We’ll find the right broker for you and put you in touch for a free no-obligation chat.