Wondering how much you’ll pay per month on a £160k 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 £160k 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 £160k mortgage will likely vary between £936 and £1,131 per month.
Interest Rate | Monthly Repayments |
5% | £936 |
5.5% | £982 |
6% | £1,030 |
6.5% | £1,080 |
7% | £1,131 |
How Much Do I Need To Earn For A £160k 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 £32,000 and £53,333 to afford a £160k mortgage.
Income Multiple | Required Salary |
3X | £53,333 |
3.5X | £45,714 |
4X | £40,000 |
4.5X | £35,556 |
5X | £32,000 |
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% | £32,091 |
5.5% | £33,682 |
6% | £35,328 |
6.5% | £37,029 |
7% | £38,784 |
How Much House Can I Afford With A £160k 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 £160k mortgage.
Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
10% | £17,778 | £177,778 |
20% | £40,000 | £200,000 |
30% | £68,571 | £228,571 |
40% | £106,667 | £266,667 |
50% | £160,000 | £320,000 |
How Much Stamp Duty Will I Pay On A House With A £160k 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 |
£177,778 (10% Down) | £0 |
£200,000 (20% Down) | £0 |
£228,571 (30% Down) | £0 |
£266,667 (40% Down) | £833 |
£320,000 (50% Down) | £3,500 |
Other Mortgage Amounts:
£170k Mortgages
£180k Mortgages
£190k Mortgages
£200k Mortgages
£210k Mortgages