Wondering how much you’ll pay per month on a £700k 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 £700k 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 £700k mortgage will likely vary between £4,095 and £4,949 per month.
| Interest Rate | Monthly Repayments |
| 5% | £4,095 |
| 5.5% | £4,298 |
| 6% | £4,508 |
| 6.5% | £4,725 |
| 7% | £4,949 |
How Much Do I Need To Earn For A £700k 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 £140,000 and £233,333 to afford a £700k mortgage.
| Income Multiple | Required Salary |
| 3X | £233,333 |
| 3.5X | £200,000 |
| 4X | £175,000 |
| 4.5X | £155,556 |
| 5X | £140,000 |
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% | £140,400 |
| 5.5% | £147,360 |
| 6% | £154,560 |
| 6.5% | £162,000 |
| 7% | £169,680 |
How Much House Can I Afford With A £700k 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 £700k mortgage.
| Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
| 10% | £77,778 | £777,778 |
| 20% | £175,000 | £875,000 |
| 30% | £300,000 | £1,000,000 |
| 40% | £466,667 | £1,166,667 |
| 50% | £700,000 | £1,400,000 |
How Much Stamp Duty Will I Pay On A House With A £700k 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 |
| £777,778 (10% Down) | £26,389 |
| £875,000 (20% Down) | £31,250 |
| £1,000,000 (30% Down) | £41,250 |
| £1,166,667 (40% Down) | £57,917 |
| £1,400,000 (50% Down) | £81,250 |
Other Mortgage Amounts:
£710k Mortgages
£720k Mortgages
£730k Mortgages
£740k Mortgages
£750k Mortgages