A £900k mortgage is large by most people’s standards, so it’s advisable to seek advice and do some calculations before you get started. Here you will learn how to work out the repayments on a mortgage of this size and get the best deal.
How much are the repayments on a £900k mortgage?
Your exact repayment will vary depending on the interest rate, term length and other factors, but to give a representative example, the average repayments on a £900,000 mortgage are around £5,002 per month and £1,425,159 overall across a standard 25-year term.
These example calculations are based on a capital repayment mortgage with an interest rate of 4%, which is roughly average for the UK market at the time of writing.
For large mortgage amounts, such as £900,000, it is highly recommended that you speak to a mortgage advisor before you apply to make sure you get the best deal.
Calculate your mortgage repayments
You can see for yourself how the repayments on a £900,000 mortgage can vary across different interest rates, terms and repayment types by using our calculator below:
Enter these details into the relevant input fields and you’ll have your results in no time.
Now that you’ve run some calculations, you next step should be a free, no-obligation chat with a whole-of-market mortgage advisor - get started here.
Factors that will affect your repayments
Here we will explore the factors that can make the repayments on a £900k mortgage differ, namely the interest rate, term length and the mortgage’s repayment type.
Interest rate
The interest rate you are offered will depend on the amount of deposit you have (the more you have, the better) and the overall strength of your mortgage application. Different product types, such as fixed-rate and tracker rate mortgages, have specific rates too.
The table below shows how the repayments on a £900,000 capital repayment mortgage taken over a term of 25 years can vary across different rate bands.
|
Mortgage Amount |
Interest Rate |
Monthly Repayments |
Overall Repayment |
|
£900k |
3.5% |
£4,506 |
£1,351,684 |
|
£900k |
4% |
£4,751 |
£1,425,159 |
|
£900k |
4.5% |
£4,447 |
£1,333,998 |
|
£900k |
5% |
£5,261 |
£1,578,393 |
|
£900k |
5.5% |
£5,527 |
£1,658,036 |
|
£900k |
6% |
£5,799 |
£1,739,614 |
Term length
The average mortgage term length in the UK is 25 years but longer and shorter options are available. A longer term means paying less each month but more overall due to having extra interest instalments to pay. The table below shows how this works for a £900k mortgage taken out on a capital repayment basis with an interest rate of 4%.
|
Mortgage Amount |
Term Length |
Monthly Repayments |
Overall Repayment |
|
£900k |
10 years |
£9,112 |
£1,093,447 |
|
£900k |
15 years |
£6,657 |
£1,198,294 |
|
£900k |
20 years |
£5,454 |
£1,308,918 |
|
£900k |
25 years |
£4,751 |
£1,425,159 |
|
£900k |
30 years |
£4,297 |
£1,546,826 |
|
£900k |
35 years |
£3,985 |
£1,673,689 |
|
£900k |
40 years |
£3,761 |
£1,805,494 |
The repayment type
The most common alternative to a capital repayment mortgage is an interest-only agreement, where the borrower only makes interest payments each month and settles the mortgage debt at the end of the term with a pre-agreed repayment vehicle.
The table below shows what the repayments will look like on a £900,000 interest-only mortgage, taken over a 25-year term, across different interest rates.
|
Mortgage Amount |
Interest Rate |
Interest-only Payments (Monthly) |
Overall Repayment |
|
£900k |
3.5% |
£2,625 |
£1,687,500 |
|
£900k |
4% |
£3,000 |
£1,800,000 |
|
£900k |
4.5% |
£3,375 |
£1,912,500 |
|
£900k |
5% |
£3,750 |
£2,025,000 |
|
£900k |
5.5% |
£4,125 |
£2,137,500 |
|
£900k |
6% |
£4,500 |
£2,250,000 |
Compare repayments on similar mortgage amounts
If £900,000 is just a ballpark borrowing amount for you, you might want to see how the repayments will vary if you were to take out a mortgage for more or less than this.
The table below shows the repayments for similar amounts in this region, based on a capital repayment agreement with a 4% interest rate and a 25-year term.
|
Mortgage Amount |
Monthly Repayments |
Overall Repayments |
|
£850k |
£4,487 |
£1,345,984 |
|
£875k |
£4,619 |
£1,385,572 |
|
£900k |
£4,751 |
£1,425,159 |
|
£925k |
£4,882 |
£1,464,747 |
|
£950k |
£5,014 |
£1,504,335 |
|
£1 million |
£5,278 |
£1,583,511 |
Calculations all done? Secure your mortgage today
How much income will you need?
You would need income of around £200,000 per year to afford a £900,000 mortgage as most mortgage lenders won’t let you borrow more than 4.5 times your annual salary. If it’s a joint or multi-person application, all of the applicants’ salaries can be combined.
If the combined salaries of all applicants falls short of this amount, you may be able to find a lender who caps their lending based on 5-6 times income, or lets you declare supplemental sources of income. The best way to find one of these lenders is through a broker.
You can use our affordability calculator below to get an idea of whether you will qualify for a £900k mortgage:
Compare £900K mortgage rates online
You can compare the latest rates on £900,000 mortgages using our free mortgage sourcing tool below. We have set this tool to display results for a 60% LTV (40% deposit) mortgage by default but you can manually change this by altering the mortgage amount and property value to match your personal circumstances. More options are available via the filters menu in the bottom left.
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How to get a £900k mortgage
After running those initial calculations, you can secure your mortgage rate on Money Helpdesk. Not only will we compare rates from across the market for you, we have expert mortgage brokers on hand to offer advice and help you complete your application.
Here are just some of the benefits of choosing Money Helpdesk for your £900k mortgage:
- We can access the latest rates for you in seconds
- Our brokers specialise in high value mortgages
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to take advantage of a free, no-obligation chat with a broker who specialises in large mortgages? Get started here.
FAQs
If you are applying for a £900k mortgage, there may be other costs and fees you should know about. They typically include:
- Product fees: Can range between nothing and £2,000. Fee-free deals often come with higher rates, but the fee itself can sometimes be added to the mortgage.
- Valuation fee: Some lenders will expect you to foot the cost of having the property you’re buying valued, and this can set you back between £250-1,500.
- Legal fees: Can range from a few hundred to several thousand pounds.
- Stamp duty: See our stamp duty guide to find out how much your bill will be and whether you qualify for exemption.
- Admin costs: This includes the booking fee, telegraphic transfer fee and the account fee. All in all, admin costs for a mortgage application can cost around £1,000.