Wondering how much you’ll pay per month on a £420k 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 £420k 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 £420k mortgage will likely vary between £2,457 and £2,969 per month.
| Interest Rate | Monthly Repayments |
| 5% | £2,457 |
| 5.5% | £2,579 |
| 6% | £2,705 |
| 6.5% | £2,835 |
| 7% | £2,969 |
How Much Do I Need To Earn For A £420k 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 £84,000 and £140,000 to afford a £420k mortgage.
| Income Multiple | Required Salary |
| 3X | £140,000 |
| 3.5X | £120,000 |
| 4X | £105,000 |
| 4.5X | £93,333 |
| 5X | £84,000 |
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% | £84,240 |
| 5.5% | £88,416 |
| 6% | £92,736 |
| 6.5% | £97,200 |
| 7% | £101,808 |
How Much House Can I Afford With A £420k 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 £420k mortgage.
| Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
| 10% | £46,667 | £466,667 |
| 20% | £105,000 | £525,000 |
| 30% | £180,000 | £600,000 |
| 40% | £280,000 | £700,000 |
| 50% | £420,000 | £840,000 |
How Much Stamp Duty Will I Pay On A House With A £420k 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 |
| £466,667 (10% Down) | £10,833 |
| £525,000 (20% Down) | £13,750 |
| £600,000 (30% Down) | £17,500 |
| £700,000 (40% Down) | £22,500 |
| £840,000 (50% Down) | £29,500 |
Other Mortgage Amounts:
£430k Mortgages
£440k Mortgages
£450k Mortgages
£460k Mortgages
£470k Mortgages