How Much Is A £120k Mortgage Per Month – Monthly Repayments

James Beattie By James Beattie 6 Min Read

If you are finally thinking about purchasing your first property, you’re likely wondering how much it is going to cost you on a monthly basis. It’s important to know that you can afford the payments before committing to a mortgage.

The repayments have been calculated using our mortgage repayment calculator to work out the monthly costs of a £120k mortgage.

What Are The Repayments On A £120k Mortgage?

At the current mortgage interest rates of approximately 5% and a mortgage period of 30 years, a £120,000 mortgage would have monthly repayments of £644 per month.

When you are getting a mortgage, there are a number of factors that 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 below tables outline the amount you can expect to pay at different interest rates as well as different Mortgage Terms.

Repayment Mortgage: Monthly Repayments On A £120,000 Mortgage

The values below are based on a 30-year mortgage term.

LTV (Loan To Value)Interest RateMonthly Repayment
Less than 80%5%£644
80 – 90% 5.5%£681
95%6.5%£758
Repayments On an £80k Mortgage Based On LTV and interest Rates

Repayment Mortgage: Repayments On A £120k 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 Rate10 Years15 years20 Years25 Years30 Years35 Years
2%£1,104£772£607£509£444£398
3%£1,159£829£666£569£506£462
4%£1,215£888£727£633£573£531
5%£1,273£949£792£702£644£606
6%£1,332£1,013£860£773£719£684
7%£1,393£1,079£930£848£798£767
Mortgage Repayments By Term

Interest Only Mortgage: Repayments On An £120k Interest Only Mortgage

The values below are based on a 30-year mortgage term.

LTV (Loan To Value)Interest RateMonthly Repayment
Less than 80%5%£500
80 – 90% 5.5%£550
95%6.5%£650
Repayments On an £120,000 Mortgage Based On LTV and interest Rates

These figures should give you a good idea of how much you can expect to pay monthly for a £120k 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.

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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.

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If you sign up to Habito through our link we may earn a commission at no extra cost to you.

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 £120k, you can use our calculator below to help you. Just plug in the mortgage amount, term and interest rate to see the monthly payment.

Mortgage Repayment Calculator

Mortgage Repayment Calculator

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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.

Our Top Mortgage Pick
If you sign up to Habito through our link we may earn a commission at no extra cost to you.

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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I'm passionate about personal finance and making money. Currently trying to FIRE solely by building online assets. Grew my stock portfolio to £86,000 by 26.
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