Mortgage calculator
Choose from our range of mortgage calculators to see what your monthly repayments are likely to be and how much stamp duty you will have to pay.
Mortgage repayments
Stamp duty
What’s a Mortgage Calculator?
A mortgage calculator is a valuable tool to help you determine how much you could borrow and what your monthly repayments look like. It crunches some basic numbers based on your details.
Our calculator will allow you to understand the monthly cost based on the loan amount and the term and compare the difference between repayment and interest-only mortgages.
How Much Can I Borrow?
Before looking at houses, you need to know what you can realistically afford. A good starting point is to work out how much you could borrow. You might’ve heard that magical “3 to 5 times your salary” rule. That’s about as reliable as a chocolate teapot in the real world. Every lender’s different; they’ll look at far more than just your salary. It would be disingenuous of us to provide a simple calculator that only relies on you to put some fundamental figures like you may see elsewhere online. Your age, credit score, monthly outgoings, and those pesky house-buying costs like stamp duty – all play a part – as well as potential changes in interest rates.
How Do Lenders Calculate Affordability?
When deciding how much they’re willing to lend, lenders look at several things. It’s not just about your salary—that’s a big part. They’ll also check your outgoings, debts, and credit history.
Here’s what most lenders will consider:
- Your income includes your basic salary, but they might also consider bonuses or any extra income.
- Your expenses and debts – Lenders will look at your monthly spending and any outstanding debts to check if you can comfortably afford repayments.
- Credit history – If you’ve missed repayments or have any outstanding debt issues, it could affect how much you can borrow and whether the lender will give you a higher interest rate.
- Interest rates – Lenders will calculate based on current rates, but they also conduct a stress test to see if you can still afford repayments if rates rise.
- Type of mortgage – Different mortgages come with different affordability checks, which can also make a difference.
Mortgage
Calculator
FAQs
Can I afford a mortgage?
It's a crucial question you need to be confident in answering. You'll have to ensure that you can keep up with the monthly payments not just now but for the entire length of your mortgage.
If your finances might fluctuate in the future, it's something to think about seriously before jumping into a mortgage commitment. And don't forget—interest rates can also go up or down over time.
Lenders will thoroughly assess your financial situation before deciding if you can afford a mortgage. This means looking at more than just your income, debt, and deposit. They'll dig into your regular expenses, like:
- Other loan or credit card repayments
- Childcare costs or maintenance payments
- School fees
- Travel expenses
- Household bills
- Insurance payments
Some lenders are stricter than others, so it's always worth shopping around to find the best one that suits your situation.
How do I calculate mortgage repayments?
It's essential to talk through your monthly repayments with your mortgage broker. Make sure you're being realistic, factoring in your other expenses and how your lifestyle might change once those mortgage payments start coming out.
To get a rough idea, you can use our mortgage payment calculator. Remember, those payments could change over time if you're on a variable-rate mortgage. If you're on a fixed rate, you're safe for the initial period, but things can shift after that.
Should you borrow the maximum amount you can afford?
Lenders may suggest a maximum amount you could borrow, and in theory, this is fine because they run stress tests to check if you can still manage the repayments even if rates rise. But here's the catch: just because you can borrow it doesn't mean you should.
If interest rates go up or the cost of living increases—think higher bills or food prices—you could find yourself struggling. Falling behind on payments is a real risk, and in the worst-case scenario, you could lose your home through repossession.
It's a good idea to leave yourself a bit of financial breathing space. Even if the lender offers you a large sum, consider not borrowing the total amount. Once the application is under review, lenders might still reduce what they're willing to give you based on your credit history, income, or outgoings.
And life changes—starting a family, losing a job, or facing an unexpected cost like a broken boiler—can put extra pressure on your budget. If you've maxed out your borrowing and then hit a financial bump, you might need to sell your home to stay afloat.
Does using a mortgage calculator affect my credit score?
Rest assured, using a mortgage calculator won't affect your credit score. When you go for a mortgage in principle, we'll take a quick look at your credit history through something called a soft credit search, which doesn't leave a mark on your score. However, once you apply for the actual mortgage, we'll carry out a hard credit check, which does leave a record that other lenders can see. Having multiple hard searches in a short time frame can impact your score, so it's something to keep in mind. Also, be aware that some mortgage brokers or lenders might run a hard check even when just assessing how much you can borrow.
How much can I afford to borrow if I'm self-employed?
For the self-employed, figuring out how much you can borrow can feel a bit trickier. That's because lenders often calculate it differently. Most will take the average of your last two or three years' income, though some may only look at the most recent year. The amount you can borrow depends on several things, including:
• Your deposit
• Your credit history
• Your income
• Your outgoings
What information do I need to provide to a mortgage broker?
The information needed depends on what you're trying to work out.
If you want to see how much you could borrow, you'll need to provide:
• Your annual salary
• Your partner's salary (for a joint mortgage)
• Your deposit amount
• Your regular monthly outgoings
If you want to know what your monthly repayments could be, we'll ask for:
• The mortgage amount (how much you want to borrow)
• The mortgage term (how long you'll be paying it back)
• The interest rate