Wondering how much you’ll pay per month on a £480k 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 £480k 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 £480k mortgage will likely vary between £2,808 and £3,394 per month.
Interest Rate | Monthly Repayments |
5% | £2,808 |
5.5% | £2,947 |
6% | £3,091 |
6.5% | £3,240 |
7% | £3,394 |
How Much Do I Need To Earn For A £480k 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 £96,000 and £160,000 to afford a £480k mortgage.
Income Multiple | Required Salary |
3X | £160,000 |
3.5X | £137,143 |
4X | £120,000 |
4.5X | £106,667 |
5X | £96,000 |
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% | £96,274 |
5.5% | £101,047 |
6% | £105,984 |
6.5% | £111,086 |
7% | £116,352 |
How Much House Can I Afford With A £480k 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 £480k mortgage.
Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
10% | £53,333 | £533,333 |
20% | £120,000 | £600,000 |
30% | £205,714 | £685,714 |
40% | £320,000 | £800,000 |
50% | £480,000 | £960,000 |
How Much Stamp Duty Will I Pay On A House With A £480k 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 |
£533,333 (10% Down) | £14,167 |
£600,000 (20% Down) | £17,500 |
£685,714 (30% Down) | £21,786 |
£800,000 (40% Down) | £27,500 |
£960,000 (50% Down) | £37,250 |
Other Mortgage Amounts:
£490k Mortgages
£500k Mortgages
£510k Mortgages
£520k Mortgages
£530k Mortgages