Wondering how much you’ll pay per month on a £820k 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 £820k 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 £820k mortgage will likely vary between £4,797 and £5,797 per month.
| Interest Rate | Monthly Repayments |
| 5% | £4,797 |
| 5.5% | £5,035 |
| 6% | £5,281 |
| 6.5% | £5,535 |
| 7% | £5,797 |
How Much Do I Need To Earn For A £820k 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 £164,000 and £273,333 to afford a £820k mortgage.
| Income Multiple | Required Salary |
| 3X | £273,333 |
| 3.5X | £234,286 |
| 4X | £205,000 |
| 4.5X | £182,222 |
| 5X | £164,000 |
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% | £164,469 |
| 5.5% | £172,622 |
| 6% | £181,056 |
| 6.5% | £189,771 |
| 7% | £198,768 |
How Much House Can I Afford With A £820k 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 £820k mortgage.
| Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
| 10% | £91,111 | £911,111 |
| 20% | £205,000 | £1,025,000 |
| 30% | £351,429 | £1,171,429 |
| 40% | £546,667 | £1,366,667 |
| 50% | £820,000 | £1,640,000 |
How Much Stamp Duty Will I Pay On A House With A £820k 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 |
| £911,111 (10% Down) | £33,056 |
| £1,025,000 (20% Down) | £43,750 |
| £1,171,429 (30% Down) | £58,393 |
| £1,366,667 (40% Down) | £77,917 |
| £1,640,000 (50% Down) | £108,550 |
Other Mortgage Amounts:
£830k Mortgages
£840k Mortgages
£850k Mortgages
£860k Mortgages
£870k Mortgages