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£240k Mortgage: Monthly Repayments & Salary Needed

Wondering how much you’ll pay per month on a £240k 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 £240k 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 £240k mortgage will likely vary between £1,404 and £1,697 per month.

Interest RateMonthly Repayments
5%£1,404
5.5%£1,474
6%£1,546
6.5%£1,620
7%£1,697

How Much Do I Need To Earn For A £240k 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 £48,000 and £80,000 to afford a £240k mortgage.

Income MultipleRequired Salary
3X£80,000
3.5X£68,571
4X£60,000
4.5X£53,333
5X£48,000
Note the required salary amount is total household income

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 RateMinimum Safe Salary
5%£48,137
5.5%£50,523
6%£52,992
6.5%£55,543
7%£58,176
Note the minimum safe salary calculation assumes no other debt. If you have other debt then the amounts above will be too low to safely borrow and will need to be adjusted accordingly.

How Much House Can I Afford With A £240k 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 £240k mortgage.

Deposit PercentageDeposit AmountMaximum House Purchase Price
10%£26,667£266,667
20%£60,000£300,000
30%£102,857£342,857
40%£160,000£400,000
50%£240,000£480,000

How Much Stamp Duty Will I Pay On A House With A £240k 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
£266,667 (10% Down)£833
£300,000 (20% Down)£2,500
£342,857 (30% Down)£4,643
£400,000 (40% Down)£7,500
£480,000 (50% Down)£11,500

Other Mortgage Amounts:

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