Wondering how much you’ll pay per month on a £720k 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 £720k 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 £720k mortgage will likely vary between £4,212 and £5,090 per month.
| Interest Rate | Monthly Repayments |
| 5% | £4,212 |
| 5.5% | £4,421 |
| 6% | £4,637 |
| 6.5% | £4,860 |
| 7% | £5,090 |
How Much Do I Need To Earn For A £720k 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 £144,000 and £240,000 to afford a £720k mortgage.
| Income Multiple | Required Salary |
| 3X | £240,000 |
| 3.5X | £205,714 |
| 4X | £180,000 |
| 4.5X | £160,000 |
| 5X | £144,000 |
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% | £144,411 |
| 5.5% | £151,570 |
| 6% | £158,976 |
| 6.5% | £166,629 |
| 7% | £174,528 |
How Much House Can I Afford With A £720k 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 £720k mortgage.
| Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
| 10% | £80,000 | £800,000 |
| 20% | £180,000 | £900,000 |
| 30% | £308,571 | £1,028,571 |
| 40% | £480,000 | £1,200,000 |
| 50% | £720,000 | £1,440,000 |
How Much Stamp Duty Will I Pay On A House With A £720k 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 |
| £800,000 (10% Down) | £27,500 |
| £900,000 (20% Down) | £32,500 |
| £1,028,571 (30% Down) | £44,107 |
| £1,200,000 (40% Down) | £61,250 |
| £1,440,000 (50% Down) | £85,250 |
Other Mortgage Amounts:
£730k Mortgages
£740k Mortgages
£750k Mortgages
£760k Mortgages
£770k Mortgages