How To Work Out Your Mortgage Repayments

When you’re looking to apply for a mortgage, it’s crucial that you know how much your mortgage repayments will be in advance so you can determine if that monthly payment will be affordable. 

In this guide, we’ll explain what factors will influence your mortgage repayments and how a mortgage calculator can help you work out your repayments. We’ve also included a range of repayment tables to give you an overview of how much different mortgage amounts could cost each month.  

How mortgage repayments work

There are four main factors that will directly affect how much your mortgage repayments will be, namely: 

• Mortgage amount. Mortgage lenders use affordability assessments to determine how much you can borrow and ensure the repayments are within your monthly spending limits. 

• Loan term. Traditionally, a mortgage term is 25 years, but it can be shorter or longer than this, with terms of up to 40 years now widely available. Longer terms will reduce the monthly repayments but will also mean you’ll pay back more interest overall. 

• Interest rate. You can choose between different types of mortgage rate deals: either fixed-rate (which means your repayments will remain fixed for a set period of time) or variable-rate (such as a tracker mortgage). 

• Deposit amount. The more deposit you have, the less you need to borrow; if you borrow less, your repayments will be lower. The size of your deposit will also influence the interest rate, as the lowest-rate deals are linked to lower loan-to-values (LTV).  

In addition, the type of repayment method you choose - either capital and repayment or interest-only - will influence how much your payments will be. Capital and repayment (where the amount you borrow reduces throughout the loan term) is usually recommended for most standard residential mortgages. 

What other factors could affect your mortgage repayments?

Several other factors could indirectly affect how much your mortgage repayments will be, such as having a bad credit score, the type of property you want to buy or even your age. In the case of having bad credit, this could limit the number of mortgage lenders willing to consider your application. 

The good news is there are a number of specialist lenders who can help applicants with bad credit still secure a mortgage. However, this may mean paying a slightly higher interest rate or more deposit to offset the additional risk the lender is taking. 

If you want to buy a non-standard construction property, this could also limit the mortgage lenders available, as not all will accept these types of applications. Those who do could ask for a higher deposit, meaning the amount you can borrow will be lower. 

Your age could also be a factor if, for example, you’re approaching retirement when you apply for a mortgage. A lender may limit the mortgage term they could offer if your income is due to drop when you retire. So, a shorter loan term means your mortgage repayments will be higher.  

Mortgage Repayment Calculator

Mortgage calculators are a fast, efficient way of working out repayments. You can get an indication of what your mortgage repayments could be straight away by using our mortgage repayment calculator. 

It’s very simple and easy to use. All you need to do is input the following information: 

• Your annual household income

• Your deposit

• The value of the property you’re looking to buy

Once you’ve done this, just click on the ‘See Results’ button, and our calculator will show you the amount you could potentially borrow based on your income, along with an example of what the mortgage repayments could be for this amount over a typical mortgage loan term and interest rate. 

Example calculations

The following sections provide an indication of what the mortgage repayments could be for specific amounts and how they can vary depending on the term of the loan. 

In addition, there’s also information outlining how much you may need to earn to qualify for these mortgage amounts based on typical income multiple calculations used by mortgage lenders. 

Our guide to mortgage affordability explains how much you can borrow for a mortgage and the other criteria involved. 

If you know how much you want to borrow for a mortgage and over what term length, a smart move at this stage would be to contact a mortgage broker - like us! 

Our mortgage team will be able to help you calculate how much your repayments could be for the specific amount you want to borrow. They will also be able to search the market on your behalf to find the most competitive interest-rate deals based on your circumstances.

This will save you a lot of time and, potentially, some money, too. All you have to do is make an enquiry, and one of our Mortgage Experts will contact you to help you get started. 

Repayments on a £100,000 mortgage

The table below shows how much the mortgage repayments could be for a £100,000 mortgage, using an indicative interest rate of 5%, with different loan terms from 15 to 40 years*. 

How much income do you need to earn for a £100,000 mortgage?

Based on the typical income multiple calculations used by most mortgage lenders of 4 to 4.5 times annual income, you would need to earn between £25,000 and £22,222 to qualify for a £100,000 mortgage. Some lenders will consider using 5 times income, which for a £100,000 mortgage would mean you’d need to earn at least £20,000 per annum. 

Repayments on a £150,000 mortgage

The table below shows how much the mortgage repayments could be for a £150,000 mortgage, using an indicative interest rate of 5%, with different loan terms from 15 to 40 years*. 

How much income do you need to earn for a £150,000 mortgage?

Based on the typical income multiple calculations used by most mortgage lenders of 4 to 4.5 times annual income, you would need to earn between £37,500 and £33,333 to qualify for a £150,000 mortgage. Some lenders will consider using 5 times income, which for a £150,000 mortgage would mean you’d need to earn at least £30,000 per annum. 

Repayments on a £200,000 mortgage

The table below shows how much the mortgage repayments could be for a £200,000 mortgage, using an indicative interest rate of 5%, with different loan terms from 15 to 40 years*. 

How much income do you need to earn for a £200,000 mortgage?

Based on the typical income multiple calculations used by most mortgage lenders of 4 to 4.5 times annual income, you would need to earn between £50,000 and £44,444 to qualify for a £200,000 mortgage. Some lenders will consider using 5 times income, which for a £200,000 mortgage would mean you’d need to earn at least £40,000 per annum. 

Repayments on a £250,000 mortgage

The table below shows how much the mortgage repayments could be for a £250,000 mortgage, using an indicative interest rate of 5%, with different loan terms from 15 to 40 years*. 

How much income do you need to earn for a £250,000 mortgage?

Based on the typical income multiple calculations used by most mortgage lenders of 4 to 4.5 times annual income, you would need to earn between £62,500 and £55,555 to qualify for a £250,000 mortgage. Some lenders will consider using 5 times income, which for a £250,000 mortgage would mean you’d need to be earning at least £50,000 per annum. 

Repayments on a £300,000 mortgage

The table below shows how much the mortgage repayments could be for a £300,000 mortgage, using an indicative interest rate of 5%, with different loan terms from 15 to 40 years*. 

How much income do you need to earn for a £300,000 mortgage?

Based on the typical income multiple calculations used by most mortgage lenders of 4 to 4.5 times annual income, you would need to earn between £75,000 and £66,666 to qualify for a £300,000 mortgage. Some lenders will consider using 5 times income, which for a £300,000 mortgage would mean you’d need to earn at least £60,000 per annum. 

Repayments on a £400,000 mortgage

The table below shows how much the mortgage repayments could be for a £400,000 mortgage, using an indicative interest rate of 5%, with different loan terms from 15 to 40 years*. 

How much income do you need to earn for a £400,000 mortgage?

Based on the typical income multiple calculations used by most mortgage lenders of 4 to 4.5 times annual income, you would need to earn between £100,000 and £88,888 to qualify for a £400,000 mortgage. Some lenders will consider using 5 times income, which for a £400,000 mortgage would mean you’d need to earn at least £80,000 per annum. 

*The information in the tables above is for example purposes only and assumes a fixed interest rate for the duration of your mortgage term. Your interest rate can change if you remortgage to a different mortgage deal or a lender’s Standard Variable Rate (SVR). 

The 5% rate used to calculate the repayments is an indicative rate based on current market conditions and the Bank of England base rate of 4.75%** (November 2024). The rate you qualify for can differ and could change due to base rate fluctuations. 

**Source: Bank Of England

What other costs are associated with getting a mortgage?

The following fees could also apply when you take out a mortgage to buy a property. 

• Mortgage arrangement fees. A one-time payment charged by your lender for setting up your mortgage, paid at the outset as either a lump sum or by adding it to your loan. Arrangement fee amounts can range from £0-£2,000. 

• Legal fees. If you have to pay for your conveyancing fees, these can range from a few hundred pounds to thousands, depending on the level of work involved. 

• Valuation fees. If you have to pay for your own valuation (some lenders include this free of charge), this can usually cost between £250 and £800, depending on the property and the level of valuation required. 

• Stamp duty. A one-off tax paid when buying property. Read our in-depth guide to learn more about Stamp Duty and how it could affect your house purchase.