Wondering how much you’ll pay per month on a £980k 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 £980k 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 £980k mortgage will likely vary between £5,733 and £6,929 per month.
| Interest Rate | Monthly Repayments |
| 5% | £5,733 |
| 5.5% | £6,017 |
| 6% | £6,311 |
| 6.5% | £6,615 |
| 7% | £6,929 |
How Much Do I Need To Earn For A £980k 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 £196,000 and £326,667 to afford a £980k mortgage.
| Income Multiple | Required Salary |
| 3X | £326,667 |
| 3.5X | £280,000 |
| 4X | £245,000 |
| 4.5X | £217,778 |
| 5X | £196,000 |
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% | £196,560 |
| 5.5% | £206,304 |
| 6% | £216,384 |
| 6.5% | £226,800 |
| 7% | £237,552 |
How Much House Can I Afford With A £980k 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 £980k mortgage.
| Deposit Percentage | Deposit Amount | Maximum House Purchase Price |
| 10% | £108,889 | £1,088,889 |
| 20% | £245,000 | £1,225,000 |
| 30% | £420,000 | £1,400,000 |
| 40% | £653,333 | £1,633,333 |
| 50% | £980,000 | £1,960,000 |
How Much Stamp Duty Will I Pay On A House With A £980k 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 |
| £1,088,889 (10% Down) | £50,139 |
| £1,225,000 (20% Down) | £63,750 |
| £1,400,000 (30% Down) | £81,250 |
| £1,633,333 (40% Down) | £107,750 |
| £1,960,000 (50% Down) | £146,950 |
Other Mortgage Amounts:
£990k Mortgages
£1 Million Mortgages
£1.5 Million Mortgages
£2 Million Mortgages
£2.5 Million Mortgages