Wondering how much you’ll pay per month on a £890k 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 £890k 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 £890k mortgage will likely vary between £5,207 and £6,292 per month.
| Interest Rate | Monthly Repayments |
| 5% | £5,207 |
| 5.5% | £5,465 |
| 6% | £5,732 |
| 6.5% | £6,008 |
| 7% | £6,292 |
How Much Do I Need To Earn For A £890k 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 £178,000 and £296,667 to afford a £890k mortgage.
| Income Multiple | Required Salary |
| 3X | £296,667 |
| 3.5X | £254,286 |
| 4X | £222,500 |
| 4.5X | £197,778 |
| 5X | £178,000 |
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% | £178,509 |
| 5.5% | £187,358 |
| 6% | £196,512 |
| 6.5% | £205,971 |
| 7% | £215,736 |
How Much House Can I Afford With A £890k 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 £890k mortgage.
| Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
| 10% | £98,889 | £988,889 |
| 20% | £222,500 | £1,112,500 |
| 30% | £381,429 | £1,271,429 |
| 40% | £593,333 | £1,483,333 |
| 50% | £890,000 | £1,780,000 |
How Much Stamp Duty Will I Pay On A House With A £890k 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 |
| £988,889 (10% Down) | £40,139 |
| £1,112,500 (20% Down) | £52,500 |
| £1,271,429 (30% Down) | £68,393 |
| £1,483,333 (40% Down) | £89,583 |
| £1,780,000 (50% Down) | £125,350 |
Other Mortgage Amounts:
£900k Mortgages
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