Wondering how much you’ll pay per month on a £550k 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 £550k 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 £550k mortgage will likely vary between £3,218 and £3,889 per month.
| Interest Rate | Monthly Repayments |
| 5% | £3,218 |
| 5.5% | £3,377 |
| 6% | £3,542 |
| 6.5% | £3,713 |
| 7% | £3,889 |
How Much Do I Need To Earn For A £550k 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 £110,000 and £183,333 to afford a £550k mortgage.
| Income Multiple | Required Salary |
| 3X | £183,333 |
| 3.5X | £157,143 |
| 4X | £137,500 |
| 4.5X | £122,222 |
| 5X | £110,000 |
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% | £110,314 |
| 5.5% | £115,783 |
| 6% | £121,440 |
| 6.5% | £127,286 |
| 7% | £133,320 |
How Much House Can I Afford With A £550k 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 £550k mortgage.
| Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
| 10% | £61,111 | £611,111 |
| 20% | £137,500 | £687,500 |
| 30% | £235,714 | £785,714 |
| 40% | £366,667 | £916,667 |
| 50% | £550,000 | £1,100,000 |
How Much Stamp Duty Will I Pay On A House With A £550k 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 |
| £611,111 (10% Down) | £18,056 |
| £687,500 (20% Down) | £21,875 |
| £785,714 (30% Down) | £26,786 |
| £916,667 (40% Down) | £33,333 |
| £1,100,000 (50% Down) | £51,250 |
Other Mortgage Amounts:
£560k Mortgages
£570k Mortgages
£580k Mortgages
£590k Mortgages
£600k Mortgages