Repayments on a £450,000 Mortgage

A mortgage of £450k is a big financial commitment, so it’s recommended that you run some calculations before you apply for one. In this guide, you’ll learn how to calculate the monthly repayments on a mortgage of this amount, what factors can affect them, and how we can help you reduce them.

How much are the monthly repayments on a £450,000 mortgage?

The average monthly repayments on a £450,000 mortgage are around £2,375. This is based on typical interest rates at the time of writing being 4% and the most common term length standing at 25 years. Based on this monthly cost, you would have repaid £715,580 by the end of the term, assuming the mortgage in question is a capital repayment agreement.

Your exact monthly repayments on a mortgage of this amount will, however, vary depending on the interest rate you qualify for, the term length you select and the mortgage type.

Calculate your monthly repayments

You can use our calculator below to work out what your mortgage repayments could amount to if you were to borrow £450k. Simply enter an interest rate and term length then hit 'calculate' to get some quick results. The output can then be converted into interest-only if you wish. 

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 affect £450k mortgage repayments

The factors below are the main variable that can drive your mortgage repayments up and down. We have compiled tables full of example calculations to add context to each.

Term length

Longer and shorter mortgage terms than the standard 25 years are available. You can potentially reduce your monthly repayments by opting for a longer term, but keep in mind that having more interest payments to make means paying more for your mortgage overall.

The table below shows how term length can impact the cost of a £450k mortgage, with examples based on a capital repayment mortgage with an interest rate of 4%.

Interest rate

The overall strength of your application will determine what kind of interest rate you end up with. The table below shows how the rate can affect the cost of a £450,000 mortgage, based on a standard term length of 25 years, taken on a capital repayment basis.

There are ways that you can improve your chances of securing a low interest rate, such as putting down more deposit and strengthening your credit position.

Mortgage type

This refers to both the product type and the repayment type. Let’s start with repayment types, which refers to the way you pay off your mortgage over the agreed term.

The most common type in the UK is capital repayment, where you settle the debt in monthly instalments that have interest charges rolled into them. The most popular alternative is an interest-only mortgage, which only requires borrowers to make interest payments each month and settle the debt itself at the end of the term, via a pre-approved repayment vehicle.

The table below shows what the repayments would be on a £450,000 interest-only mortgage, based on various different rates and a term length of 25 years.

The mortgage product type can also affect your repayments by determining how interest is charged. The most common product types in the UK are fixed-rate and tracker mortgages - you can read more on them through the links.

Calculations all done? Secure your mortgage today

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Comparing similar mortgage amounts

For some prospective borrowers, £450,000 will be the approximate mortgage size that they need. The table below shows you how your repayments might change if you were to borrow slightly more or less than this on a capital repayment basis with a 4% rate over 25 years.

How much do I need to earn to get a mortgage of this amount?

Given that most mortgage lenders will cap your maximum borrowing at 4-4.5 times annual salary, all of the applicants would need a combined salary of £100,000-£112,500 a year to get approved for a mortgage of £450,000.

If you don’t have this much income, the good news is that a smaller number of lenders might be willing to offer you a deal based on 5 times salary, or even up to 6 times salary.

You can use our affordability calculator below to get an idea of whether your income his high enough:

Compare £450K mortgage rates online

You can compare the latest rates on £450,000 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.

Tips for reducing your mortgage payments

Below you will find some tips that could help you keep the repayments on your £450,000 mortgage to a minimum:

• Prioritise building your deposit: The size of your deposit directly impacts your Loan-to-Value (LTV) ratio. Lenders operate in tiers, so by increasing your deposit to cross an LTV threshold (e.g., from 10% to 15%), you can often unlock a new bracket of more competitive interest rates, leading to significant savings.

• Do the maths on product fees: The mortgage with the lowest interest rate isn't always the cheapest overall. It's essential to calculate the total cost over the initial fixed period, factoring in any arrangement or product fees. A higher fee might be worthwhile if the accompanying rate saves you more in the long run.

• Get your credit file in order: Before lenders review your financial history, review it yourself. Obtain your reports from the three main credit reference agencies (Experian, Equifax, and TransUnion) and dispute any inaccuracies. A clean, accurate credit file is fundamental to being offered the best possible mortgage rates.

• Engage a whole-of-market broker: A broker can navigate the entire mortgage landscape on your behalf, providing access to deals and lenders that aren't available to the general public. Their role is to match your specific circumstances to the most suitable product, a process that can substantially lower your repayments and secure a more appropriate loan term.

Why choose Money Helpdesk for your mortgage needs?

Now that you have worked out the repayments on your £450,000 mortgage, you can begin your mortgage journey with us. We have expert mortgage brokers on hand to make sure you’re getting the best deal and oversee the application process for you.

Here are just some of the reasons to source your mortgage through us:

• You can access exclusive rates and deals
• Our brokers are whole-of-market and impartial
• We are 5-star rated on leading review websites
• It takes just minutes to secure a mortgage in principle

Ready to secure your mortgage and access expert broker advice? Get started here to kick things off with free, no-obligation chat about your mortgage options.