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        Updated: May 22, 2023

        £700-800 Per Month Mortgages

        Looking for a mortgage based on £700 to £800 per month? Read our guide to find out how to make your money go further.

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        Author: Pete Mugleston - Mortgage Expert, MD

        Updated: June 06, 2022

        One of the most important factors when you’re choosing a mortgage is the amount you can afford to repay each month. If your budget means you’re looking for a mortgage with monthly repayments of £700-£800, this article is for you.

        In this guide, we’ll go through everything you need to know, including what size mortgage you can get for that amount and how a broker can help you make your money go further.

        What mortgage can you get for £700-800 a month?

        Based on an average interest rate of 2.5% and a standard term length of 25 years, you would roughly be able to borrow somewhere between £156,000 and £178,000 on a mortgage if you had between £700 and £800 to spend on monthly payments.

        As important as it is to set yourself a monthly budget for your mortgage repayments, the two key factors that will influence how much you will be able to borrow are your income and your typical monthly outgoings.

        When assessing affordability, a lender will look at your annual income and apply a multiple of that as the basis for the mortgage amount you could qualify for. You can use our mortgage affordability calculator here to see how this would work for you, based on your own earnings.

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        Mortgage Affordability Calculator

        Our affordability calculator can tell you how much you can potentially borrow from a mortgage lender. Simply enter your total household income below and our calculator will do the rest.

        Input full salaries for all applicants
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        You could borrow up to 

        Most lenders would consider letting you borrow

        This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders.

        Some lenders would consider letting you borrow

        This is based on 5 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender.

        A minority of lenders would consider letting you borrow

        This is based on 6 times your household income, a salary multiple you will struggle to get without a broker. Six-times salary mortgages are usually only available under very specific circumstances.

        Get Started with an expert broker to find out exactly how much you could borrow.

        The exact amount of your mortgage can also be indirectly affected by a number of other eligibility criteria, such as; your credit score, employment history, and how much money you have available for a deposit. All of these factors could potentially limit the number of lenders willing to consider your application.

        In addition, the three main factors that combine to affect your monthly mortgage repayments are your loan size, interest rate, and the length of your mortgage term.

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        How the term length affects your payments

        The length of your mortgage term will have a big impact on how much you pay each month. For example, if you take out a 40-year mortgage, your monthly payments will be lower than if you borrowed the same amount of money over 25 years. A shorter term will mean higher monthly repayments, but you’ll pay less interest overall.

        Here are some examples. If we assume you’re buying a £275,000 property with a 10% deposit, here’s how the length of the mortgage term could affect your monthly repayments.

        Mortgage term Interest rate Monthly repayments
        20 years 4.1% £1187
        30 years 4.3% £847
        40 years 4.4% £705

        These examples are correct at the time of writing and are for illustration only. But you can see that, depending on the amount you want to borrow, you might need to extend your mortgage over a longer period in order to keep your mortgage payments below £800 per month.

        How payments vary depending on deposit size

        The bigger your deposit, the lower your monthly repayments will be. This is partly because you will simply be borrowing less money. But it’s also because you’re perceived as being less of a risk to the lender, so you’re more likely to be offered a lower interest rate and/or a longer term mortgage, which could reduce your monthly payments.

        With a smaller deposit, you’ll be taking out a higher ‘loan to value’ mortgage, which simply means you’re borrowing more in relation to the property value. This usually comes with a higher interest rate than if you had a larger deposit.

        Example calculations

        To give you an idea of how much mortgage you can get for £700 a month, £750 a month or £800 a month – and how much this will vary with the amount of deposit you can afford – we’ve put together some examples below.

        With a 5% deposit you could buy a house for… With a 10% deposit you could buy a house for… With a 20% deposit you could buy a house for…
        £700 mortgage payment £210,000 £220,000 £230,000
        £750 mortgage payment £230,000 £240,000 £250,000
        £800 mortgage payment £230,000 £250,000 £290,000

        All of these examples assume you’ll be paying your mortgage off over 30 years; and they’re all correct at the time of writing, but are for illustration only, as rates and mortgage deals change all the time. Speak to a broker for bespoke calculations and advice.

        Alternatively, if you have a specific mortgage term or amount in mind you can use our repayment calculator below to see how this could work out for you:

        calculator icon

        Mortgage Repayment Calculator

        Our mortgage repayment calculator can tell you how much your mortgage will cost you each month and overall. Enter the amount you’re borrowing, the term length and interest rate, and our calculator will do the rest.


        Enter the amount you're borrowing
        £
        2.5% is an average figure but the rate you get may vary
        %
        25 years is average, but most lenders offer longer and shorter terms
        years

        Monthly Repayments:

        Total amount paid at end of term:

        Get started with an expert broker to find out how much they could help you save on your mortgage repayments.

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        How a broker can make your money go further

        A broker can take a look at the amount you’ve got available to spend on monthly mortgage payments and match you with a mortgage deal that maximises this amount. If you’ve got between £700 and £800 available, they can help you source the lowest interest rate and ideal term length to you to make sure you’re getting the right mortgage for you.

        Using a broker will give you access to a wide range of deals from different lenders, including mortgage providers who don’t deal with the public directly and offer exclusive deals to customers who apply through a mortgage advisor.

        They’ll also be able to give you expert advice on what’s suitable for your individual circumstances and monthly budget.

        The types of mortgage available

        For £700 to £800 per month, there are a variety of mortgage types you could get…

        Capital versus interest-only

        A capital repayment mortgage is where you pay off both the interest and some of the money you’ve borrowed each month. This means your mortgage will be cleared at the end of the term.

        An interest-only mortgage is where you only have to pay the interest on what you’ve borrowed. You’ll need to find another way to repay the original amount borrowed at the end of the term and evidence your ‘repayment vehicle’ to the lender in advance.

        The type of mortgage you choose will affect how much you’ll ultimately pay back, so it’s important to think about what’s best for your circumstances. An interest-only mortgage means lower payments during the mortgage term, which could help you stay within your £700-800 per month budget. However, this could cost more money overall.

        If you’re looking for a buy-to-let mortgage, then interest-only is generally the preferred option favoured by most lenders.

        Fixed-rate versus variable rate

        A fixed rate mortgage means that your interest rate will stay the same for a set period of time, typically two, three or five years. This can give you peace of mind, as you’ll know what your monthly repayments will be for the whole of this time.

        A variable rate mortgage could go up or down depending on the Bank of England’s base rate. This means your monthly repayments could change, which might make it more difficult to stick to an £800 a month mortgage payment budget.

        Finding the right broker for your £800 budget

        Knowing how much you can afford to pay off your mortgage each month is a big step towards finding the right mortgage deal for you. But as we’ve seen, there are a number of other factors that affect the mortgage deal you can get.

        An expert broker can help guide you through the process and find you the best deal on a mortgage with £700 to £800 per month repayments, or lower.

        We work with a network of mortgage brokers who can offer you impartial advice and access to the latest deals. Whatever your circumstances – whether you’re a first-time buyer or not, have bad credit or good – we’ll match you with the right broker for your needs, for a free, no-obligation chat. Call 0808 189 0463 or make an enquiry to get started with your ideal broker.

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        Pete Mugleston

        Mortgage Expert, MD

        About the author

        Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

        Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

        FCA Disclaimer

        *Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

        Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.