Wondering how much you’ll pay per month on a £620k 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 £620k 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 £620k mortgage will likely vary between £3,627 and £4,383 per month.
Interest Rate | Monthly Repayments |
5% | £3,627 |
5.5% | £3,807 |
6% | £3,993 |
6.5% | £4,185 |
7% | £4,383 |
How Much Do I Need To Earn For A £620k 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 £124,000 and £206,667 to afford a £620k mortgage.
Income Multiple | Required Salary |
3X | £206,667 |
3.5X | £177,143 |
4X | £155,000 |
4.5X | £137,778 |
5X | £124,000 |
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% | £124,354 |
5.5% | £130,519 |
6% | £136,896 |
6.5% | £143,486 |
7% | £150,288 |
How Much House Can I Afford With A £620k 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 £620k mortgage.
Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
10% | £68,889 | £688,889 |
20% | £155,000 | £775,000 |
30% | £265,714 | £885,714 |
40% | £413,333 | £1,033,333 |
50% | £620,000 | £1,240,000 |
How Much Stamp Duty Will I Pay On A House With A £620k 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 |
£688,889 (10% Down) | £21,944 |
£775,000 (20% Down) | £26,250 |
£885,714 (30% Down) | £31,786 |
£1,033,333 (40% Down) | £44,583 |
£1,240,000 (50% Down) | £65,250 |
Other Mortgage Amounts:
£630k Mortgages
£640k Mortgages
£650k Mortgages
£660k Mortgages
£670k Mortgages