Wondering how much you’ll pay per month on a £740k 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 £740k 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 £740k mortgage will likely vary between £4,329 and £5,232 per month.
Interest Rate | Monthly Repayments |
5% | £4,329 |
5.5% | £4,544 |
6% | £4,766 |
6.5% | £4,995 |
7% | £5,232 |
How Much Do I Need To Earn For A £740k 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 £148,000 and £246,667 to afford a £740k mortgage.
Income Multiple | Required Salary |
3X | £246,667 |
3.5X | £211,429 |
4X | £185,000 |
4.5X | £164,444 |
5X | £148,000 |
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% | £148,423 |
5.5% | £155,781 |
6% | £163,392 |
6.5% | £171,257 |
7% | £179,376 |
How Much House Can I Afford With A £740k 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 £740k mortgage.
Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
10% | £82,222 | £822,222 |
20% | £185,000 | £925,000 |
30% | £317,143 | £1,057,143 |
40% | £493,333 | £1,233,333 |
50% | £740,000 | £1,480,000 |
How Much Stamp Duty Will I Pay On A House With A £740k 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 |
£822,222 (10% Down) | £28,611 |
£925,000 (20% Down) | £33,750 |
£1,057,143 (30% Down) | £46,964 |
£1,233,333 (40% Down) | £64,583 |
£1,480,000 (50% Down) | £89,250 |
Other Mortgage Amounts:
£750k Mortgages
£760k Mortgages
£770k Mortgages
£780k Mortgages
£790k Mortgages