Wondering how much you’ll pay per month on a £640k 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 £640k 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 £640k mortgage will likely vary between £3,744 and £4,525 per month.
Interest Rate | Monthly Repayments |
5% | £3,744 |
5.5% | £3,930 |
6% | £4,122 |
6.5% | £4,320 |
7% | £4,525 |
How Much Do I Need To Earn For A £640k 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 £128,000 and £213,333 to afford a £640k mortgage.
Income Multiple | Required Salary |
3X | £213,333 |
3.5X | £182,857 |
4X | £160,000 |
4.5X | £142,222 |
5X | £128,000 |
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% | £128,366 |
5.5% | £134,729 |
6% | £141,312 |
6.5% | £148,114 |
7% | £155,136 |
How Much House Can I Afford With A £640k 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 £640k mortgage.
Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
10% | £71,111 | £711,111 |
20% | £160,000 | £800,000 |
30% | £274,286 | £914,286 |
40% | £426,667 | £1,066,667 |
50% | £640,000 | £1,280,000 |
How Much Stamp Duty Will I Pay On A House With A £640k 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 |
£711,111 (10% Down) | £23,056 |
£800,000 (20% Down) | £27,500 |
£914,286 (30% Down) | £33,214 |
£1,066,667 (40% Down) | £47,917 |
£1,280,000 (50% Down) | £69,250 |
Other Mortgage Amounts:
£650k Mortgages
£660k Mortgages
£670k Mortgages
£680k Mortgages
£690k Mortgages