Wondering how much you’ll pay per month on a £840k 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 £840k 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 £840k mortgage will likely vary between £4,914 and £5,939 per month.
Interest Rate | Monthly Repayments |
5% | £4,914 |
5.5% | £5,158 |
6% | £5,410 |
6.5% | £5,670 |
7% | £5,939 |
How Much Do I Need To Earn For A £840k 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 £168,000 and £280,000 to afford a £840k mortgage.
Income Multiple | Required Salary |
3X | £280,000 |
3.5X | £240,000 |
4X | £210,000 |
4.5X | £186,667 |
5X | £168,000 |
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% | £168,480 |
5.5% | £176,832 |
6% | £185,472 |
6.5% | £194,400 |
7% | £203,616 |
How Much House Can I Afford With A £840k 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 £840k mortgage.
Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
10% | £93,333 | £933,333 |
20% | £210,000 | £1,050,000 |
30% | £360,000 | £1,200,000 |
40% | £560,000 | £1,400,000 |
50% | £840,000 | £1,680,000 |
How Much Stamp Duty Will I Pay On A House With A £840k 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 |
£933,333 (10% Down) | £34,583 |
£1,050,000 (20% Down) | £46,250 |
£1,200,000 (30% Down) | £61,250 |
£1,400,000 (40% Down) | £81,250 |
£1,680,000 (50% Down) | £113,350 |
Other Mortgage Amounts:
£850k Mortgages
£860k Mortgages
£870k Mortgages
£880k Mortgages
£890k Mortgages