Wondering how much you’ll pay per month on a £4 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 £4 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 £4 Million mortgage will likely vary between £23,400 and £28,280 per month.
Interest Rate | Monthly Repayments |
5% | £23,400 |
5.5% | £24,560 |
6% | £25,760 |
6.5% | £27,000 |
7% | £28,280 |
How Much Do I Need To Earn For A £4 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 £800,000 and £1,333,333 to afford a £4 Million mortgage.
Income Multiple | Required Salary |
3X | £1,333,333 |
3.5X | £1,142,857 |
4X | £1,000,000 |
4.5X | £888,889 |
5X | £800,000 |
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% | £802,286 |
5.5% | £842,057 |
6% | £883,200 |
6.5% | £925,714 |
7% | £969,600 |
How Much House Can I Afford With A £4 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 £4 Million mortgage.
Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
10% | £444,444 | £4,444,444 |
20% | £1,000,000 | £5,000,000 |
30% | £1,714,286 | £5,714,286 |
40% | £2,666,667 | £6,666,667 |
50% | £4,000,000 | £8,000,000 |
How Much Stamp Duty Will I Pay On A House With A £4 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 |
£4,444,444 (10% Down) | £444,583 |
£5,000,000 (20% Down) | £511,750 |
£5,714,286 (30% Down) | £597,464 |
£6,666,667 (40% Down) | £711,750 |
£8,000,000 (50% Down) | £871,750 |
Other Mortgage Amounts:
£4 Million Mortgages
£4.5 Million Mortgages
£10 Million Mortgages
£20 Million Mortgages