Repayments on a £90,000 Mortgage

A £90k mortgage is below the average UK amount, but it pays to be prepared before you apply for significant finance of any kind. In this guide, you will learn how to calculate the repayments on a £90k mortgage and how to get one.

How much would a £90k mortgage cost?

The average monthly repayments on a £90,000 mortgage would be £475. This example calculation is for a capital repayment mortgage with a 4% interest rate, taken over a 25-year term, reflective of the market conditions at the time of writing.

The above is representative of a typical mortgage deal right now, and if you were to take out this mortgage, you would have repaid a total of £142,516 by the end of the term.

Although these figures are relevant examples, your exact mortgage costs will vary based on factors including the interest rate, term length and the type of mortgage you’re applying for.

Work out your mortgage repayments

You can use our calculator below to work out the costs on your £90,000 mortgage. This tool allows you to compare the costs across different interest rates, term lengths and repayment types. Simply enter these details into the input fields below to get some quick results.

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 determine your repayments

In this section we will explore how the term length, interest rate and mortgage type can affect the cost of a £90k mortgage, complete with example calculations for context.

How interest rates affect your payments

The table below shows how the cost of a £90k mortgage can vary across different interest rates. These figures are based on a capital repayment mortgage taken over 25 years.

Your mortgage lender will decide what interest rate you qualify for based, primarily, on how much deposit you have and the overall strength of your application.

Term lengths

This table shows how the repayments on a £90k mortgage will change depending on the term length. These calculations are for a capital repayment mortgage with a 4% interest rate.

The longer the term, the lower your mortgage repayments will be, but maxing out the term means paying more for your overall, due to the number of interest instalments increasing.

Mortgage type

The mortgage type will also have a bearing on your repayments as specific product types have different rates attached. Fixed and variable-rate mortgages come with different rates, depending on factors including how long you lock in for and whether you pay a fee.

In addition to the product type, most lenders will give you a choice of repayment type, with interest-only being the main alternative to capital repayment mortgages.

The table below shows how much a £90,000 mortgage will cost each month and overall when taken out on an interest-only basis with a term length of 25 years.

Similar mortgage amounts

For some people, £90k is a ballpark amount they need to borrow. The table below shows how your mortgage repayments will change if you were to borrow slightly more or less than this on a capital repayment agreement with a 4% rate over a 25-year term.

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How much salary do you need to get a £90k mortgage?

All of the mortgage applicants would need to be earning around £20,000 per year combined. This is because the majority of lenders will cap you maximum borrowing at 4.5 times annual salary - 4.5 x 20,000 = 90,000. If you don’t earn this amount, keep in mind that there are lenders who will let you borrow 5-6 times salary, under the right circumstances.

You can use our calculator below to get an idea of whether you earn enough income to qualify for a £90,000 mortgage.

Compare £90k mortgage rates online

You can compare the latest rates on £90,000 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 to help you lower your mortgage costs

You can potentially keep the repayments on a £90k mortgage to a minimum by bearing the following tips in mind:

• Contribute a larger deposit: Increasing your initial deposit reduces the amount you need to borrow and, crucially, lowers your loan-to-value (LTV) ratio. Lenders view a lower LTV more favourably, which can grant you access to a wider range of products with more competitive interest rates.

• Enhance your creditworthiness: Taking proactive steps to improve your credit profile before applying can have a significant impact on the rate you're offered. Settling any manageable debts, ensuring all your payments are consistently on time, and allowing historical credit issues to fall off your record will all help to strengthen your application.

• Extend the mortgage term: Spreading your loan over a longer period is a common strategy to lower your monthly repayments, which can help with immediate affordability. It is important to remember, however, that this will increase the total amount of interest you pay over the full life of the loan.

• Explore an interest-only option: This type of mortgage offers lower monthly payments as you are only servicing the interest on the debt. However, you must have a credible and robust strategy (a ‘repayment vehicle’) in place to clear the capital balance at the end of the term. Seeking professional advice from a mortgage broker is essential before considering this path.

How to get a £90,000 mortgage

Once you have run some calculations, you can get the ball rolling on your mortgage application by comparing deals for free on Money Helpdesk. You can get the ball rolling by speaking to one of our mortgage brokers so they can find the best deal for you.

Get started here to book in a free, no-obligation chat with one of our advisers so they can guide you through the application process.