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 Rate | Monthly 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 Multiple | Required Salary |
3X | £80,000 |
3.5X | £68,571 |
4X | £60,000 |
4.5X | £53,333 |
5X | £48,000 |
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% | £48,137 |
5.5% | £50,523 |
6% | £52,992 |
6.5% | £55,543 |
7% | £58,176 |
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 Percentage | Deposit Amount | Maximum 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:
£250k Mortgages
£260k Mortgages
£270k Mortgages
£280k Mortgages
£290k Mortgages