Wondering how much you’ll pay per month on a £800k 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 £800k 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 £800k mortgage will likely vary between £4,680 and £5,656 per month.
Interest Rate | Monthly Repayments |
5% | £4,680 |
5.5% | £4,912 |
6% | £5,152 |
6.5% | £5,400 |
7% | £5,656 |
How Much Do I Need To Earn For A £800k 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 £160,000 and £266,667 to afford a £800k mortgage.
Income Multiple | Required Salary |
3X | £266,667 |
3.5X | £228,571 |
4X | £200,000 |
4.5X | £177,778 |
5X | £160,000 |
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% | £160,457 |
5.5% | £168,411 |
6% | £176,640 |
6.5% | £185,143 |
7% | £193,920 |
How Much House Can I Afford With A £800k 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 £800k mortgage.
Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
10% | £88,889 | £888,889 |
20% | £200,000 | £1,000,000 |
30% | £342,857 | £1,142,857 |
40% | £533,333 | £1,333,333 |
50% | £800,000 | £1,600,000 |
How Much Stamp Duty Will I Pay On A House With A £800k 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 |
£888,889 (10% Down) | £31,944 |
£1,000,000 (20% Down) | £41,250 |
£1,142,857 (30% Down) | £55,536 |
£1,333,333 (40% Down) | £74,583 |
£1,600,000 (50% Down) | £103,750 |
Other Mortgage Amounts:
£810k Mortgages
£820k Mortgages
£830k Mortgages
£840k Mortgages
£850k Mortgages