Wondering how much you’ll pay per month on a £3 Million 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 £3 Million 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 £3 Million mortgage will likely vary between £17,550 and £21,210 per month.
Interest Rate | Monthly Repayments |
5% | £17,550 |
5.5% | £18,420 |
6% | £19,320 |
6.5% | £20,250 |
7% | £21,210 |
How Much Do I Need To Earn For A £3 Million 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 £600,000 and £1,000,000 to afford a £3 Million mortgage.
Income Multiple | Required Salary |
3X | £1,000,000 |
3.5X | £857,143 |
4X | £750,000 |
4.5X | £666,667 |
5X | £600,000 |
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% | £601,714 |
5.5% | £631,543 |
6% | £662,400 |
6.5% | £694,286 |
7% | £727,200 |
How Much House Can I Afford With A £3 Million 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 £3 Million mortgage.
Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
10% | £333,333 | £3,333,333 |
20% | £750,000 | £3,750,000 |
30% | £1,285,714 | £4,285,714 |
40% | £2,000,000 | £5,000,000 |
50% | £3,000,000 | £6,000,000 |
How Much Stamp Duty Will I Pay On A House With A £3 Million 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 |
£3,333,333 (10% Down) | £311,250 |
£3,750,000 (20% Down) | £361,750 |
£4,285,714 (30% Down) | £426,036 |
£5,000,000 (40% Down) | £511,750 |
£6,000,000 (50% Down) | £631,750 |
Other Mortgage Amounts:
£3.5 Million Mortgages
£4 Million Mortgages
£4.5 Million Mortgages
£5 Million Mortgages
£10 Million Mortgages