Repayments on a £50,000 Mortgage

A mortgage of £50k would be well below the market average, but it’s still a good idea to be prepared before you apply for one. Here you will learn how to work out the repayments on a mortgage of this amount and get the best deal possible.

Key facts

• About £264 a month: that’s the cost of a £50,000 repayment mortgage at 4% over 25 years. You’d repay around £79,200 in total. At 5%, it rises to about £292 a month.
• The term makes a big difference: at 4%, a 35-year term cuts the monthly payment to about £221, but you’d repay nearly £93,000 in total. A 15-year term costs about £370 a month but saves around £12,600 compared with 25 years.
• Small overpayments go a long way: paying an extra £50 a month at 4% would clear the mortgage in about 19 years and save around £7,800 in interest.
• Interest-only is cheaper each month but not overall: it costs about £167 a month at 4%. You’d still owe the full £50,000 at the end of the term, so you’d need a plan to repay it.
• You’ll need an income of around £11,100: that’s what it takes to borrow £50,000 at 4.5 times your salary. Most lenders also want a deposit of at least 5%, which would be £2,500 on a £50,000 home.

How much would the repayments on a £50k mortgage be?

The typical monthly repayments on a £50,000 mortgage would be around £264. This example calculation is based on a capital repayment mortgage with a term length of 25 years and an interest rate of 4%.

If you were to pay this amount on a £50k mortgage over 25 years, you will have repaid £79,176 by the end of the term. The rates we have used to work out these example figures were representative of the UK market at the time of writing, but rates are subject to change.

The exact repayments you end up with will vary depending on the kind of mortgage deal you qualify for and the type of product and repayment type you choose.

Calculate your mortgage repayments

You can use our mortgage calculator below to work out the repayments on a £50k mortgage and how they vary based on different interest rates, term lengths and repayment types. It takes seconds to enter these variables and receive some quick results.

Variables that affect mortgage repayments

The exact repayments to expect on a mortgage of £50k will depend on these factors:

• The interest rate you qualify for
• The term length
• Product and repayment type
• Overpayment

Read on to find out how mortgage repayments vary based on these factors.

Interest rate

The interest rate you are offered will depend on the loan-to-value ratio (how much deposit you can put down) and your creditworthiness. The table below shows how the repayments on a capital repayment mortgage taken over 25 years can vary based on different rates. 

Term length

Standard mortgage terms are 25 years but most lenders offer longer and shorter agreements than this to cater for borrowers with different preferences. Stretching a mortgage over a longer term means lower monthly payments but paying more in interest overall.

The table below shows how the monthly cost of a £50k mortgage can vary across different term lengths. An example rate of 4% for a capital repayment mortgage was used here.

Mortgage type

Different product types, such as fixed-rates and trackers come with their own rates, and therefore different monthly costs. The repayment type will also determine your repayments, specifically whether you choose a capital repayment mortgage (as is most common) or an interest-only deal, where only the interest must be paid each month.

The table below shows what the repayments will look like on a £50,000 interest-only mortgage taken over 25 years, with examples based on different interest rates.

The exact mortgage amount

Some mortgage borrowers may be in a position to put down extra deposit or may ultimately have to borrow slightly more than £50k. With this in mind, we have created the table below showing repayment calculations for similar mortgage amounts in the same ballpark.

The calculations above used a capital repayment mortgage with a term length of 25 years and an interest rate of 4% for example purposes

Savings on a £50,000 Mortgage if you overpay

Overpaying your mortgage by even a small amount can have a surprising impact on the total amount of interest you pay and the length of your repayment term, as shown in the below table:

Calculations all done? Secure your mortgage today

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How much income do you need to get a £50k mortgage?

You will need annual income of around £11,111 to get a mortgage of £50,000 as most lenders cap their maximum borrowing at 4.5 times salary. You can use our calculator below to get an idea of whether you earn enough income to qualify for a mortgage of this amount:

Compare £50k mortgage rates online

You can compare the latest rates on £50,000 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.

Apply for a £50k 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 £50k mortgage:

• You can access rates and deals in seconds
• Exclusive products are often available
• 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 one of our expert advisors? Get started here.