Wondering how much you’ll pay per month on a £120k Mortgage? Then keep reading to find out how much you’ll pay and what you need to earn.
How Much Will I Pay Per Month On A £120k Mortgage?
The main factor determining how much you’ll pay is your interest rate. Current interest rates for a standard 25 year repayment mortgage are between 5% and 7% in the UK.
This means you’re monthly repayments on a £120k mortgage will likely vary between £702 and £848 per month.
Interest Rate | Monthly Repayments |
5% | £702 |
5.5% | £737 |
6% | £773 |
6.5% | £810 |
7% | £848 |
How Much Do I Need To Earn For A £120k Mortgage?
In general most banks and mortgage lenders will let you borrow between 3X and 5X your income with 4X-4.5X being the norm.
This means you’d need to earn between £24,000 and £40,000 to afford a £120k mortgage.
Income Multiple | Required Salary |
3X | £40,000 |
3.5X | £34,286 |
4X | £30,000 |
4.5X | £26,667 |
5X | £24,000 |
Another way to look at how much you’d need to earn is to keep total debt repayments (including mortgage repayments) below 35% of gross (pre-tax) income.
On that basis here is the absolute minimum salary you could earn based on various interest rate scenarios.
Interest Rate | Minimum Safe Salary |
5% | £24,069 |
5.5% | £25,262 |
6% | £26,496 |
6.5% | £27,771 |
7% | £29,088 |
How Much House Can I Afford With A £120k Mortgage?
In most cases it’s no longer possible to get 100% or no deposit mortgages in the UK. Therefore you’ll have to put at least 10% down.
Below we’ve calculated how much house you could afford based on your deposit amount and a £120k mortgage.
Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
10% | £13,333 | £133,333 |
20% | £30,000 | £150,000 |
30% | £51,429 | £171,429 |
40% | £80,000 | £200,000 |
50% | £120,000 | £240,000 |
How Much Stamp Duty Will I Pay On A House With A £120k Mortgage?
Finally, when you buy a house you may have to pay stamp duty. Below we’ve made the calculations on how much you’d pay based on the house prices above.
House Purchase Price | Stamp Duty Owed |
£133,333 (10% Down) | £0 |
£150,000 (20% Down) | £0 |
£171,429 (30% Down) | £0 |
£200,000 (40% Down) | £0 |
£240,000 (50% Down) | £0 |
Other Mortgage Amounts:
£130k Mortgages
£140k Mortgages
£150k Mortgages
£160k Mortgages
£170k Mortgages