Wondering how much you’ll pay per month on a £850k 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 £850k 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 £850k mortgage will likely vary between £4,973 and £6,010 per month.
| Interest Rate | Monthly Repayments |
| 5% | £4,973 |
| 5.5% | £5,219 |
| 6% | £5,474 |
| 6.5% | £5,738 |
| 7% | £6,010 |
How Much Do I Need To Earn For A £850k 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 £170,000 and £283,333 to afford a £850k mortgage.
| Income Multiple | Required Salary |
| 3X | £283,333 |
| 3.5X | £242,857 |
| 4X | £212,500 |
| 4.5X | £188,889 |
| 5X | £170,000 |
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% | £170,486 |
| 5.5% | £178,937 |
| 6% | £187,680 |
| 6.5% | £196,714 |
| 7% | £206,040 |
How Much House Can I Afford With A £850k 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 £850k mortgage.
| Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
| 10% | £94,444 | £944,444 |
| 20% | £212,500 | £1,062,500 |
| 30% | £364,286 | £1,214,286 |
| 40% | £566,667 | £1,416,667 |
| 50% | £850,000 | £1,700,000 |
How Much Stamp Duty Will I Pay On A House With A £850k 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 |
| £944,444 (10% Down) | £35,694 |
| £1,062,500 (20% Down) | £47,500 |
| £1,214,286 (30% Down) | £62,679 |
| £1,416,667 (40% Down) | £82,917 |
| £1,700,000 (50% Down) | £115,750 |
Other Mortgage Amounts:
£860k Mortgages
£870k Mortgages
£880k Mortgages
£890k Mortgages
£900k Mortgages