Wondering how much you’ll pay per month on a £490k 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 £490k 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 £490k mortgage will likely vary between £2,867 and £3,464 per month.
| Interest Rate | Monthly Repayments |
| 5% | £2,867 |
| 5.5% | £3,009 |
| 6% | £3,156 |
| 6.5% | £3,308 |
| 7% | £3,464 |
How Much Do I Need To Earn For A £490k 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 £98,000 and £163,333 to afford a £490k mortgage.
| Income Multiple | Required Salary |
| 3X | £163,333 |
| 3.5X | £140,000 |
| 4X | £122,500 |
| 4.5X | £108,889 |
| 5X | £98,000 |
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% | £98,280 |
| 5.5% | £103,152 |
| 6% | £108,192 |
| 6.5% | £113,400 |
| 7% | £118,776 |
How Much House Can I Afford With A £490k 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 £490k mortgage.
| Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
| 10% | £54,444 | £544,444 |
| 20% | £122,500 | £612,500 |
| 30% | £210,000 | £700,000 |
| 40% | £326,667 | £816,667 |
| 50% | £490,000 | £980,000 |
How Much Stamp Duty Will I Pay On A House With A £490k 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 |
| £544,444 (10% Down) | £14,722 |
| £612,500 (20% Down) | £18,125 |
| £700,000 (30% Down) | £22,500 |
| £816,667 (40% Down) | £28,333 |
| £980,000 (50% Down) | £39,250 |
Other Mortgage Amounts:
£500k Mortgages
£510k Mortgages
£520k Mortgages
£530k Mortgages
£540k Mortgages