Wondering how much you’ll pay per month on a £940k 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 £940k 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 £940k mortgage will likely vary between £5,499 and £6,646 per month.
Interest Rate | Monthly Repayments |
5% | £5,499 |
5.5% | £5,772 |
6% | £6,054 |
6.5% | £6,345 |
7% | £6,646 |
How Much Do I Need To Earn For A £940k 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 £188,000 and £313,333 to afford a £940k mortgage.
Income Multiple | Required Salary |
3X | £313,333 |
3.5X | £268,571 |
4X | £235,000 |
4.5X | £208,889 |
5X | £188,000 |
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% | £188,537 |
5.5% | £197,883 |
6% | £207,552 |
6.5% | £217,543 |
7% | £227,856 |
How Much House Can I Afford With A £940k 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 £940k mortgage.
Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
10% | £104,444 | £1,044,444 |
20% | £235,000 | £1,175,000 |
30% | £402,857 | £1,342,857 |
40% | £626,667 | £1,566,667 |
50% | £940,000 | £1,880,000 |
How Much Stamp Duty Will I Pay On A House With A £940k 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 |
£1,044,444 (10% Down) | £45,694 |
£1,175,000 (20% Down) | £58,750 |
£1,342,857 (30% Down) | £75,536 |
£1,566,667 (40% Down) | £99,750 |
£1,880,000 (50% Down) | £137,350 |
Other Mortgage Amounts:
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