Property in: LONDON

Mortgage Calculator

Getting a mortgage is a commitment, so choosing wisely is only critical. As mortgage offers greatly vary, it is often complex to see if it is the right fit. At 1newhomes, we created an easy mortgage calculator for users to see how interest rates, mortgage terms, and loan-to-value ratio (LTV) affect monthly mortgage repayments.

This universal tool allows ambitious homeowners and buyers to understand their affordability better, which is especially relevant for first-time property buyers (FTBs) facing rising interest rates and challenging property market settings.


The type of loan you choose will affect your interest rate and your monthly payments, so it’s vital to choose wisely. Here’s a look at different loan options for some common mortgage types

Repayment term
Deposit, £
Interest rate, %
£00 000

per month

How much is a £500,000 mortgage per month in UK?

  Monthly Repayment Interest Paid Interest Rate
500k mortgage over 20 years £2,529 £106,960 2%
500k mortgage over 25 years £2,119 £135,700 2%
500k mortgage over 30 years £1,848 £165,280 2%

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Mortgage Frequently Asked Questions


What is better: using a mortgage broker or a bank?

When considering getting a mortgage, many buyers in London choose between contacting a mortgage broker or going directly to the bank. There are several differences, and in some cases, one option is better than another.

In general, using a mortgage broker means having access to the entire mortgage market. Also, brokers help manage complex financial situations like compromised credit history or non-standard incomes. As a result, a mortgage broker helps you find a specialist lender who will be the right fit for your needs.

Applying directly to banks is recommended for financially savvy buyers who know the market well and are aware of various other options available to them.

How to deal with rising mortgage rates?
There are several tips for aspiring homebuyers and existing homeowners on managing rising mortgage rates. One of the most critical things is to keep your budget clear and always know how much you earn, spend, and save. However, there are additional tips to follow:
  • Reassess your spending to save a bigger deposit or manage higher mortgage repayments easier
  • Get help from a mortgage broker
  • Always take advantage of tools like online mortgage calculators
  • Be aware of your mortgage terms and conditions
  • Contact your mortgage lender if struggling with repayments
Can I get a mortgage with bad credit?

Yes, you can. However, it will be more difficult than for someone with a good credit rank. Lenders use the score to check if a borrower passes the affordability checks.

And a lot depends on the credit score itself because there is a clear difference between a fair and a really bad rating. Some lenders offer mortgages specifically designed for people with bad credit. They might include higher rates or fees.

Another solution is contacting lenders and directly seeking advice as they are ready to assist even in complex situations. Else, gradually improving your rating is another alternative that might require extra time.

Can I get a mortgage with a low income?

Sure, it is possible to qualify for a mortgage with a low income. Having more income means more flexibility with finance and won't require cutting spending as much as with lower incomes.

A bright side is that lenders test a lot of things when checking your affordability, including income sources. They will make sure you can afford monthly payments without struggling.

The main three things lenders check are the mortgage repayments, your household bills, and any other living costs. As such, ensure you have enough income to cover all that and consider cutting unnecessary spending such as memberships you don't use.

One of the best options is to contact a mortgage broker and seek advice on how to proceed with a mortgage application to look best with lenders.

How can a foreigner get a mortgage in the UK?

For international buyers, there are several requirements to meet when taking a mortgage. The most critical thing is that you need at least one of the following:

  • A Visa (family, tier 1, tier 2)
  • Permanent residency in the UK
  • A permanent job in the UK
  • A UK Bank Account
  • A UK work permit
Can I get a mortgage earning 20k per year in the UK?

Some lenders have a minimum requirement for income at £20k per year for residential property deals. Others might accept applicants with £15k or £10k annual income. Moreover, a few lenders have no minimum income requirements whatsoever.

You might qualify for a mortgage with 20k when:

  • Your income is not limited by your salary.
  • You have saved a significant deposit.
  • Your credit rank is good.
  • Your spendings are minimal and essential.
  • You are buying an affordable home.

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