Repayments on an £800,000 Mortgage

A mortgage of £800,000 would be officially classed as large, so it’s important to be prepared before you apply for one. Here, you will learn how to calculate the repayments on a mortgage of this size and where to turn for specialist advice.

How much would an £800,000 mortgage cost per month?

An £800,000 mortgage would cost around £4,223 per month. This example calculation is for a capital repayment mortgage of this amount with a 4% interest rate and a 25-year term, which is representative of the current market conditions at the time of writing.

The overall repayments on a £800,000 mortgage would be £1,266,808 across the term, but that is assuming no changes are made to the agreement over those 25 years.

While the example calculations we have provided are representative of the UK market, your exact repayments may vary based on several factors, which we will explore in this article.

How to calculate your repayments

You can use our calculator below to work out the repayments on your £800k mortgage and compare how they would look with different interest rates, terms and repayment types.

Enter these details into the calculator below and it will serve you 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

The exact repayments you can expect on a £800,000 mortgage will depend largely on the interest rate you qualify for, the term length and the type of mortgage you choose.

The sections which follow will explore how these factors affect an £800k mortgage in depth.

Interest rate

The interest rate on your £800k mortgage will depend on the factors below:

• How much deposit you have: The lower the loan-to-value (LTV) ratio, the better your chances of securing a favourable rate on your mortgage.
• Overall strength of application: Risk factors such as bad credit or being self-employed with limited proof of income can make it harder to land the best rates.
• Product type: Different rates are attached to each product type. Fixed-rate mortgages, for example, generally come with lower rates than trackers and deals with fees attached have lower rates than fee-free mortgage products.

The table below shows how the costs of a £800k mortgage will vary across different interest rates. These examples are for a capital repayment mortgage with a 25-year term.

Term length

Mortgage lenders offer a range of term length options in addition to the standard 25 years. The table below shows how the cost of an £800k mortgage can vary depending on the term length, with example calculations for a capital repayment mortgage with a 4.5% rate.

Notice how the monthly payments decrease and the overall amount rises as the term length goes up? Stretching a mortgage over a lengthier team means paying less each month but more in the long run due to having more interest instalments to deal with.

Repayment vs. interest-only mortgages

Most Uk residential mortgages are taken out on a capital repayment basis where you pay off the debt plus interest each month. The main alternative is interest-only, which means you only need to settle the interest each month and pay off the loan itself at the end of term.

The table below shows what the repayments would look like on an £800,000 interest-only mortgage across different rates, with a term length of 25 years.

The exact mortgage amount

The table below shows how the repayments on an £800,000 mortgage compare with other amounts in the same range, for those who see £800,000 as a ballpark borrowing amount.

Calculations all done? Secure your mortgage today

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How much do you need to earn to get an £800k mortgage?

All of the mortgage applicants would need a combined salary of just below £177,800 to get approved for an £800,000 mortgage. This is based on the maximum borrowing at most mortgage lenders being around the 4.5 times annual salary mark.

If you don’t earn this much, your options would typically include:

• Finding a lender who stretches to 5-6 times income
• Declaring supplemental income such as bonuses, benefits or investments
• Add more applicants to the mortgage (some lenders allow up to four)

Use our calculator below to get an idea of whether you would qualify for an £800k mortgage based on your income:

Compare £800K mortgage rates online

You can compare the latest rates on £800,000 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.

Get started on your mortgage journey

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 £800k mortgage:

• You can access £800k mortgage rates 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 large mortgages? Get started here.