Wondering how much you’ll pay per month on a £5 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 £5 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 £5 Million mortgage will likely vary between £29,250 and £35,350 per month.
Interest Rate | Monthly Repayments |
5% | £29,250 |
5.5% | £30,700 |
6% | £32,200 |
6.5% | £33,750 |
7% | £35,350 |
How Much Do I Need To Earn For A £5 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 £1,000,000 and £1,666,667 to afford a £5 Million mortgage.
Income Multiple | Required Salary |
3X | £1,666,667 |
3.5X | £1,428,571 |
4X | £1,250,000 |
4.5X | £1,111,111 |
5X | £1,000,000 |
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% | £1,002,857 |
5.5% | £1,052,571 |
6% | £1,104,000 |
6.5% | £1,157,143 |
7% | £1,212,000 |
How Much House Can I Afford With A £5 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 £5 Million mortgage.
Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
10% | £555,556 | £5,555,556 |
20% | £1,250,000 | £6,250,000 |
30% | £2,142,857 | £7,142,857 |
40% | £3,333,333 | £8,333,333 |
50% | £5,000,000 | £10,000,000 |
How Much Stamp Duty Will I Pay On A House With A £5 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 |
£5,555,556 (10% Down) | £577,917 |
£6,250,000 (20% Down) | £661,750 |
£7,142,857 (30% Down) | £768,893 |
£8,333,333 (40% Down) | £911,750 |
£10,000,000 (50% Down) | £1,111,750 |
Other Mortgage Amounts:
£4 Million Mortgages
£4.5 Million Mortgages
£10 Million Mortgages
£20 Million Mortgages