Written by Mark Langshaw Reviewed by Lee Trett
Sources
19 June 2026
Lowest rate is currently 3.99% - 2 years tracker interest only mortgage at 60% LTV
30 April 2026
Lowest rate is currently 3.96% - 2 years tracker interest only mortgage at 75% LTV
15 April 2026
Lowest rate is currently 4.01% - 2 years tracker interest only mortgage at 60% LTV
15 April 2026
Added 2 new and improved calculators, a new section with table and a new FAQ
24 March 2026
Lowest rate is currently 4.01% - 2 years tracker interest only mortgage at 60% LTV
8 March 2024
First Published
While £25k is a small mortgage amount, there are scenarios where you might need to borrow this sum. Perhaps this is the figure outstanding ahead of your remortgage, or maybe you have a large deposit and need £25k as a top up.
If this is the amount you need, it’s a good idea to do some calculations before you get started, and here, you will learn how to work out what the repayments will be on a mortgage of this size and how to kickstart your application.
How much are the repayments on a £25,000 mortgage?
The monthly repayments on a £25,000 mortgage are roughly £146 per month, based on current market conditions in the UK.
This example calculation is based on a capital repayment mortgage with a 25-year term and an interest rate of 4%, which is representative of the current market right now.
Taking a £25k mortgage out on this agreement would mean paying back a total of £39,588 by the end of that 25-year term, assuming no changes are made to the mortgage.
The exact cost of your mortgage may vary depending on the rate you qualify for and other factors, which we will explore in depth in this article.
Calculate your mortgage repayments
You can use our repayments calculator below to work out what your £25,000 mortgage will cost per month and overall. The repayment amount is set to £25k by default, so simply enter a term length, interest rate and repayment type to get some fast results.
What factors will affect your mortgage repayments?
The exact amount that your £25,000k mortgage will cost each month and overall will depend on the following factors:
- Your mortgage interest rate: The rate you qualify for will depend on the loan-to-value (LTV) ratio (determined by how much deposit you have), the overall strength of your application, and the type of mortgage product you choose.
- The term length: Mortgages with a longer term length have lower monthly repayment but are more expensive overall due to the extra interest instalments.
- The repayment type: Most UK mortgages are offered on a capital repayment basis, but interest-only is a common alternative. The repayments will be different on a £25k interest-only mortgage as you would only have to pay the interest each month.
We will now take a closer look at how these factors affect the cost of your mortgage.
Interest rate
This table shows how the repayments on a £25k mortgage will vary across different rates. We have used a capital repayment mortgage with a 25-year term for these calculations.
|
Mortgage Amount |
Interest Rate |
Monthly Repayments |
Overall Repayment |
|
£25k |
3.5% |
£125 |
£37,547 |
|
£25k |
4% |
£132 |
£39,588 |
|
£25k |
4.5% |
£139 |
£41,687 |
|
£25k |
5% |
£146 |
£43,844 |
|
£25k |
5.5% |
£154 |
£46,057 |
|
£25k |
6% |
£161 |
£48,323 |
It’s worth taking note that some mortgage product types have different rates to others. For example, longer fixed-rate mortgages tend to have lower rates than short-term ones, and deals with an upfront product fee typically have lower rates than fee-free ones.
Term length
The table below shows how the cost of a £25k mortgage can vary across different terms. These calculations are based on a capital repayment mortgage with a 5% rate.
|
Mortgage Amount |
Term Length |
Monthly Repayments |
Overall Repayment |
|
£25k |
10 years |
£253 |
£30,374 |
|
£25k |
15 years |
£185 |
£33,286 |
|
£25k |
20 years |
£151 |
£36,359 |
|
£25k |
25 years |
£132 |
£39,588 |
|
£25k |
30 years |
£119 |
£42,967 |
|
£25k |
35 years |
£111 |
£46,491 |
|
£25k |
40 years |
£104 |
£50,153 |
£25k interest-only mortgage repayments
The table below shows what the repayments would look like on a £25k interest-only mortgage across different rates and an example term length of 25 years.
|
Mortgage Amount |
Interest Rate |
Interest-only Payments (Monthly) |
Overall Repayment |
|
£25k |
3.5% |
£73 |
£46,875 |
|
£25k |
4% |
£83 |
£50,000 |
|
£25k |
4.5% |
£94 |
£53,125 |
|
£25k |
5% |
£104 |
£56,250 |
|
£25k |
5.5% |
£115 |
£59,375 |
|
£25k |
6% |
£125 |
£62,500 |
Increasing your borrowing
Perhaps you have the option to borrow more on your mortgage or remortgage. With this in mind, we have put together the table below to give you an idea of how the repayments on a £25,000 mortgage compare to other amounts in this ballpark. These examples are for a capital repayment mortgage with a 5% interest rate, taken out on a 25-year term.
|
Mortgage Amount |
Monthly Repayments |
Overall Repayments |
|
£25k |
£132 |
£39,588 |
|
£30k |
£158 |
£47,505 |
|
£35k |
£185 |
£55,423 |
|
£40k |
£211 |
£63,340 |
|
£45k |
£238 |
£71,258 |
|
£264 |
£79,176 |
Calculations all done? Secure your mortgage today
How much income do you need to earn?
You could get approved for a mortgage of this amount with annual income as low as £5,560 per year, as most mortgage lenders will let you borrow at least 4.5 times your salary. Some lenders might even let you borrow 5-6 times income, so it may be possible to get approved with a lower salary.
Use our mortgage affordability calculator below to find out whether you earn enough to get approved for a £25k mortgage.
Compare £25K mortgage rates online
You can compare the latest rates on £25,000 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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Representative example
A repayment mortgage of over year, APR %. Total payable (incl. product fees of ). Repayments: months at (%), then months at (%, variable). Early repayment charges apply. Rates not guaranteed.
About these rates
Rates shown are illustrative based on the property value, mortgage amount, and term you entered above. Actual rates and total cost depend on your credit profile, deposit, and lender assessment. APR figures include product fees where applicable. Early repayment charges may apply. Rates are not guaranteed and may change before you apply - speak to an adviser to confirm what's available to you today. For a per-product representative example, open Show full details on any card above.
Is a personal loan more suitable than a £25k mortgage?
As £25,000 is often the maximum for many unsecured personal loans, and some mortgage lenders don't offer loans this small, borrowers are frequently caught between taking out a mortgage (or further advance) and a personal loan. This table helps them compare the two.
Comparing a £25,000 Mortgage with a Personal Loan
| Feature | Mortgage / Further Advance | Unsecured Personal Loan |
| Typical Interest Rate | 4% – 6% | 6% – 12% |
| Monthly Repayment | £472 | £500 – £550 |
| Setup Fees | May include legal/product fees (£0–£1,000) | Usually £0 |
| Speed of Funds | 4–8 weeks | Same day to 48 hours |
| Security | Secured against your home (Risk of repossession) | Unsecured (No direct risk to home) |
| Flexibility | Longer terms available (up to 40 years) | Typically capped at 5–7 years |
Apply for a £25k mortgage today
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 £25,000k mortgage:
- You can access rates from 90+ lenders for FREE in seconds
- Our brokers often have access to exclusive deals
- 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 small mortgage amounts? Get started here.
FAQs
The main obstacle you are likely to face is the minimum loan amounts that some UK mortgage lenders have. Certain mortgage providers won’t offer mortgages less than a certain amount, with common limits being anywhere between £30,000 and £50,000.
However, there are a fair number of lenders who offer mortgages as low as £25,000, but it is recommended that you use a whole-of-market broker to filter out those that don’t.
Although the repayments on a £25,000 mortgage can be relatively small, there are other costs involved for a mortgage application, so you should take these on board too:
- 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.
- Booking fee: An admin cost as part of the mortgage application process. It can range between £99-250 and is sometimes rolled into the product fee.
- 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.
- Telegraphic transfer fee: A small fee to cover the cost of transferring your mortgage funds to your solicitor so the deal can be closed, usually between £25 and £50.
- Account fee: Another admin cost, usually between £100 and £300, to cover the set up, maintenance and eventual closure of your mortgage account held by the lender.
- Stamp duty: See our stamp duty guide to find out how much your bill will be and whether you qualify for exemption.
The amount of mortgage deposit you will need will be based on the value of the property, not the mortgage amount. You will need an absolute minimum of 5% of the property’s value in most cases, although a limited number of no-deposit mortgage options exist.
This is a critical consideration. If a mortgage has a £999 product fee and £500 in legal costs, that represents 6% of your total £25,000 loan. In these cases, it is often more cost-effective to choose a deal with a slightly higher interest rate but no fees, as the interest saved on a small balance rarely outweighs the cost of a large upfront fee.