Wondering how much you’ll pay per month on a £870k 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 £870k 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 £870k mortgage will likely vary between £5,090 and £6,151 per month.
| Interest Rate | Monthly Repayments |
| 5% | £5,090 |
| 5.5% | £5,342 |
| 6% | £5,603 |
| 6.5% | £5,873 |
| 7% | £6,151 |
How Much Do I Need To Earn For A £870k 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 £174,000 and £290,000 to afford a £870k mortgage.
| Income Multiple | Required Salary |
| 3X | £290,000 |
| 3.5X | £248,571 |
| 4X | £217,500 |
| 4.5X | £193,333 |
| 5X | £174,000 |
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% | £174,497 |
| 5.5% | £183,147 |
| 6% | £192,096 |
| 6.5% | £201,343 |
| 7% | £210,888 |
How Much House Can I Afford With A £870k 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 £870k mortgage.
| Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
| 10% | £96,667 | £966,667 |
| 20% | £217,500 | £1,087,500 |
| 30% | £372,857 | £1,242,857 |
| 40% | £580,000 | £1,450,000 |
| 50% | £870,000 | £1,740,000 |
How Much Stamp Duty Will I Pay On A House With A £870k 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 |
| £966,667 (10% Down) | £37,917 |
| £1,087,500 (20% Down) | £50,000 |
| £1,242,857 (30% Down) | £65,536 |
| £1,450,000 (40% Down) | £86,250 |
| £1,740,000 (50% Down) | £120,550 |
Other Mortgage Amounts:
£880k Mortgages
£890k Mortgages
£900k Mortgages
£910k Mortgages
£920k Mortgages