Wondering how much you’ll pay per month on a £400k 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 £400k 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 £400k mortgage will likely vary between £2,340 and £2,828 per month.
Interest Rate | Monthly Repayments |
5% | £2,340 |
5.5% | £2,456 |
6% | £2,576 |
6.5% | £2,700 |
7% | £2,828 |
How Much Do I Need To Earn For A £400k 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 £80,000 and £133,333 to afford a £400k mortgage.
Income Multiple | Required Salary |
3X | £133,333 |
3.5X | £114,286 |
4X | £100,000 |
4.5X | £88,889 |
5X | £80,000 |
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% | £80,229 |
5.5% | £84,206 |
6% | £88,320 |
6.5% | £92,571 |
7% | £96,960 |
How Much House Can I Afford With A £400k 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 £400k mortgage.
Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
10% | £44,444 | £444,444 |
20% | £100,000 | £500,000 |
30% | £171,429 | £571,429 |
40% | £266,667 | £666,667 |
50% | £400,000 | £800,000 |
How Much Stamp Duty Will I Pay On A House With A £400k 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 |
£444,444 (10% Down) | £9,722 |
£500,000 (20% Down) | £12,500 |
£571,429 (30% Down) | £16,071 |
£666,667 (40% Down) | £20,833 |
£800,000 (50% Down) | £27,500 |
Other Mortgage Amounts:
£410k Mortgages
£420k Mortgages
£430k Mortgages
£440k Mortgages
£450k Mortgages