Purchasing your first property can be a daunting experience. One of the most important steps is understanding how much house you can afford to buy. If you plan on taking out a mortgage, it’s important to know how much it will cost every month at a range of different interest rates.
The repayments in this post have been calculated using our mortgage repayment calculator to work out the monthly costs of a £300k mortgage.
What Are The Repayments On A £300k Mortgage?
At the current mortgage interest rates of approximately 5% and a mortgage period of 30 years, a £300,000 mortgage would have monthly repayments of £1,610 per month.
When you are getting a mortgage, several factors will influence your interest rates and monthly repayment. The loan-to-value ratio will affect the interest rate you receive and the length of your mortgage term will determine how much you are paying monthly.
The tables below outline the amount you can expect to pay at different interest rates as well as different Mortgage Terms.
Repayment Mortgage: Monthly Repayments On A £300,000 Mortgage
The values below are based on a 30-year mortgage term for a £300,000 mortgage.
| LTV (Loan To Value) | Interest Rate | Monthly Repayment |
|---|---|---|
| Less than 80% | 5% | £1,610 |
| 80 – 90% | 5.5% | £1,703 |
| 95% | 6.5% | £1,896 |
Repayment Mortgage: Repayments On A £300k Mortgage By Term
The table below shows you how the mortgage term length affects your mortgage payment at different interest rates. Obviously, the longer your mortgage term the cheaper the monthly payment. However, the longer your mortgage term is, the more interest you will pay.
| Interest Rate | 10 Years | 15 years | 20 Years | 25 Years | 30 Years | 35 Years |
|---|---|---|---|---|---|---|
| 2% | £2,760 | £1,931 | £1,518 | £1,272 | £1,109 | £994 |
| 3% | £2,897 | £2,072 | £1,664 | £1,423 | £1,265 | £1,155 |
| 4% | £3,037 | £2,219 | £1,818 | £1,584 | £1,432 | £1,328 |
| 5% | £3,182 | £2,372 | £1,980 | £1,754 | £1,610 | £1,514 |
| 6% | £3,331 | £2,532 | £2,149 | £1,933 | £1,799 | £1,711 |
| 7% | £3,483 | £2,696 | £2,326 | £2,120 | £1,996 | £1,917 |
Interest Only Mortgage: Repayments On A £300k Interest Only Mortgage
The values below are based on a 30-year mortgage term.
| LTV (Loan To Value) | Interest Rate | Monthly Repayment |
|---|---|---|
| Less than 80% | 5% | £1,250 |
| 80 – 90% | 5.5% | £1,375 |
| 95% | 6.5% | £1,625 |
These figures should give you a good idea of how much you can expect to pay monthly for a £300k mortgage in the UK however they are for illustrative purposes only. You should not rely on these rates as everyone’s situation is different. We would recommend using a professional broker such as Habito to find a mortgage deal for you.
They will be able to compare over 20,000 mortgages from 90 different lenders ensuring you get the best deal. They’ll also help you with all the boring paperwork which is always nice.
Buying a home and arranging a mortgage is a complicated process. Habito is a free service that makes buying a home easy. They have access to over 20,000 mortgages from 90 lenders allowing you to get the best deal on a mortgage.
Best of all, the service is free as Habito gets paid by the lenders.
- Free mortgage comparison service
- Provides a complete home buying service
- 4.8 Stars on Trustpilot (8,374 Reviews)
- 20,000 Mortgages and 90 Lenders available
Check Monthly Repayments On A Larger Or Smaller Mortgage
If you want to check out how much your mortgage would be if you borrowed more or less than £300k, you can use our calculator below to help you. Just plug in the mortgage amount, term and interest rate to see the monthly payment.
How To Get A Lower Monthly Mortgage Payment
There are a number of ways to lower your monthly mortgage payment however some of them will result in you paying more in total for your mortgage.
Extending the Mortgage Term
Extending the term of your mortgage will reduce the monthly payment but will increase the amount of interest you pay over the life of the loan.
Interest Only Mortgage
Shifting to an interest-only mortgage can reduce monthly payments since you are only paying the interest and not reducing the principal, but this means you’re not building equity in the property.
This option can be risky, and you should have a clear plan for repaying the capital at the end of the mortgage term.
Refinance Your Mortgage
Refinancing to a lower interest rate can reduce your monthly payments, and you may also consider extending the loan term to lower the payments further. Be mindful of the costs associated with refinancing, such as arrangement fees and valuation fees. If interest rates have recently dropped significantly, this option may be viable.
Research and Consideration
Before making any decisions, thoroughly research your options and consider seeking advice from a financial advisor or a mortgage consultant. Ensure any changes align with your long-term financial goals and don’t jeopardize your financial stability. Keep in mind that reducing monthly payments by extending the mortgage term usually increases the total amount paid over the life of the loan due to the additional interest payments.
If you are purchasing your first house I would highly recommend reading our complete mortgage timeline article which takes you through the mortgage process from start to finish.
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