Can you afford a mortgage?

Check you can afford a mortgage

To work out how much you can afford to spend on a home, you need to work out:

Subtract your outgoings from your income to see how much you can pay on a mortgage each month. You can then avoid getting one with repayments you cannot afford.

You can work out how much you can spend on a home by using a mortgage cost calculator. Enter the mortgage amount, interest rate and term to check how much repayments will cost.

Check if you can afford the mortgage by comparing this amount to how much you can afford to pay each month.

There are many other costs when you buy a property, as well as the mortgage. Here is how much buying a home can cost in total.

Will lenders accept your mortgage application?

Lenders have to carefully check your financial circumstances before they can offer you a mortgage. The Financial Conduct Authority's (FCA) rules means they have to make sure you can keep up with the repayments.

To work out how much you can afford to repay, they will look at:

Lenders will also base their decision on:

They also run stress tests to check you could still afford your mortgage if interest rates went up or your circumstances changed, like if you lost your job.

Use our mortgage affordability calculator to check how much lenders are likely to offer.

Work out your income

Add up the following to work out your monthly income:

Work out your outgoings

Use a calculator like Nationwide's budget planner to add up how much money you spend each month.

Alternatively, work out your essential living costs and other spending yourself:

Calculate your living costs

What else do you spend?

Add up how much you spend in an average month on:

How to afford a mortgage

If your income is currently too low to get a mortgage on the property you want, you could wait until your income is higher or try the following:

You should also consider income protection insurance, which could cover your mortgage repayments if you were unable to work due to an accident or illness.

Get the right mortgage

Avoid applying for too many mortgages if you get rejected because this can harm your credit record and make it harder for you to get accepted.

Getting the right mortgage for your circumstances can help you get accepted and come with lower costs than an unsuitable deal. Here is how to work out what type of mortgage is right for you.

You can get mortgages designed for:

Save on bills

Here is how to cut the cost of your: