Wondering how much you’ll pay per month on a £320k 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 £320k 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 £320k mortgage will likely vary between £1,872 and £2,262 per month.
| Interest Rate | Monthly Repayments |
| 5% | £1,872 |
| 5.5% | £1,965 |
| 6% | £2,061 |
| 6.5% | £2,160 |
| 7% | £2,262 |
How Much Do I Need To Earn For A £320k 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 £64,000 and £106,667 to afford a £320k mortgage.
| Income Multiple | Required Salary |
| 3X | £106,667 |
| 3.5X | £91,429 |
| 4X | £80,000 |
| 4.5X | £71,111 |
| 5X | £64,000 |
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% | £64,183 |
| 5.5% | £67,365 |
| 6% | £70,656 |
| 6.5% | £74,057 |
| 7% | £77,568 |
How Much House Can I Afford With A £320k 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 £320k mortgage.
| Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
| 10% | £35,556 | £355,556 |
| 20% | £80,000 | £400,000 |
| 30% | £137,143 | £457,143 |
| 40% | £213,333 | £533,333 |
| 50% | £320,000 | £640,000 |
How Much Stamp Duty Will I Pay On A House With A £320k 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 |
| £355,556 (10% Down) | £5,278 |
| £400,000 (20% Down) | £7,500 |
| £457,143 (30% Down) | £10,357 |
| £533,333 (40% Down) | £14,167 |
| £640,000 (50% Down) | £19,500 |
Other Mortgage Amounts:
£330k Mortgages
£340k Mortgages
£350k Mortgages
£360k Mortgages
£370k Mortgages