A mortgage of £600,000 is relatively large by UK standards, so it’s a good idea to be prepared before you start the application process. In this guide, you will learn how to calculate the repayments on a mortgage of this amount, what factors determine them, and how we can help you get the best deal on your mortgage.
How much are the repayments on a £600,000 mortgage?
At the time of writing (May 2024), the typical monthly repayments on a £600,000 mortgage would be £3,508. This is based on a capital repayment mortgage with a term length of 25 years and a 5% interest rate, which is representative of the current market.
If you were to pay this much on your mortgage over that example term, your overall repayments across the duration of the agreement would be £1,052,262.
Keep in mind that your exact mortgage repayments will vary based on several factors, namely the term length, the rate you qualify for and the type of mortgage you choose. We will explore the specific impact of these variables in detail throughout this article.
Calculate your mortgage repayments
You can use our calculator below to work out how your mortgage repayments will vary based on different rates, term lengths and repayments types. Simply full out the input fields below to get some quick results.
Now that you have run some calculations, you can compare rates from lenders across the market for free on Teito. Once you have chosen a deal you like the look of, we will arrange a free no-obligation chat between you and one of our mortgage brokers to ensure the application process goes smoothly - get started here.
Factors that will determine your mortgage repayments
Here we will explore the factors that will determine the exact repayments on your £600,000 mortgage, complete with example calculations for added context.
Interest rate
The interest rate you qualify for will be determined by the loan-to-value ratio (LTV) and the overall strength of your application. The table below shows how the repayments on a £600k mortgage can vary across various different interest rates, starting at 3.5%.
Mortgage Amount | Interest Rate | Monthly Repayments | Overall Repayment |
£600k | 3.5% | £3,004 | £901,122 |
£600k | 4% | £3,167 | £950,106 |
£600k | 4.5% | £3,335 | £1,000,498 |
£600k | 5% | £3,508 | £1,052,262 |
£600k | 5.5% | £3,685 | £1,105,357 |
£600k | 6% | £3,866 | £1,159,743 |
Thesecalculations arefora capital repayment mortgage with a 25-year term.
Term length
If you were to take out a £600k mortgage over a longer term than the standard 25 years, your monthly payments will be lower but you would pay more for your mortgage across the term due to being charged extra interest instalments. See the table below for example calculations based on a capital repayment mortgage with a 5% interest rate.
Mortgage Amount | Term Length | Monthly Repayments | Overall Repayment |
| £600k | 10 years | £6,364 | £763,672 |
£600k | 15 years | £4,745 | £854,057 |
£600k | 20 years | £3,960 | £950,336 |
£600k | 25 years | £3,508 | £1,052,262 |
£600k | 30 years | £3,221 | £1,159,535 |
£600k | 35 years | £3,028 | £1,271,813 |
£600k | 40 years | £2,893 | £1,388,726 |
Mortgage type
Whether you take out a fixed rate or variable-rate mortgage will also have a bearing on your repayments as these product types come with different interest rates, depending on factors such as how long you lock in for and whether you pay an upfront product fee.
The repayment type will also make a difference as most lenders give you the option to take out your mortgage on an interest-only basis as an alternative to capital repayment
The table below shows example calculations across a range of different interest rates for a £600,000 interest-only mortgage taken over a term of 25 years.
Mortgage Amount | Interest Rate | Interest-only Payments (Monthly) | Overall Repayment |
£600k | 3.5% | £1,750 | £1,125,000 |
£600k | 4% | £2,000 | £1,200,000 |
£600k | 4.5% | £2,250 | £1,275,000 |
£600k | 5% | £2,500 | £1,350,000 |
£600k | 5.5% | £2,750 | £1,425,000 |
£600k | 6% | £3,000 | £1,500,000 |
The mortgage amount
If you have identified £600,000 as a ballpark figure for your mortgage, the table below shows how your repayments will change if you were to borrow slightly more or less than this. These calculations are for a capital repayment mortgage with a 5% rate and a 25-year term.
Mortgage Amount | Monthly Repayments | Overall Repayments |
£575k | £906 | £271,834 |
£600k | £3,361 | £1,008,418 |
£625k | £3,654 | £1,096,106 |
£650k | £3,800 | £1,139,951 |
£675k | £3,946 | £1,183,795 |
£700k | £4,092 | £1,227,639 |
Other costs to factor in
A £600,000 mortgage is a significant financial commitment, so it’s important to be aware of every cost involved, besides your mortgage repayments, before you make an application.
Most mortgages also come with the following additional charges:
- Product fees: Can range between nothing and £2,000. Fee-free deals often come with higher rates, but the fee itself can sometimes be added to the mortgage.
- Booking fee: An admin cost as part of the mortgage application process. It can range between £99-250 and is sometimes rolled into the product fee.
- Valuation fee: Some lenders will expect you to foot the cost of having the property you’re buying valued, and this can set you back between £250-1,500.
- Telegraphic transfer fee: A small fee to cover the cost of transferring your mortgage funds to your solicitor so the deal can be closed, usually between £25 and £50.
- Account fee: Another admin cost, usually between £100 and £300, to cover the set up, maintenance and eventual closure of your mortgage account held by the lender.
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Tips to help you reduce your mortgage payments
The following tips can potentially help you reduce the repayments on your £600k mortgage:
Consider paying a product fee: Mortgage deals with upfront product fees tend to have lower interest rates than ones without. If you have the capital to cover this fee, your repayments are likely to be lower due to the more favourable rate.
Improve your credit situation: You can download your credit reports by signing up for a free trial with Checkmyfile. Look over your reports and search for any inaccuracies or outdated information because requesting to have such things removed can improve your credit and help you qualify for a better interest rate.
Save up extra deposit: Lowering the loan-to-value (LTV) ratio can also help you qualify for a better interest rate. This is the main incentive to save up extra deposit, if you are in a position to make a larger down payment than originally planned.
Speak to a mortgage broker: A mortgage broker has the knowledge, experience and lender contacts to ensure you get the best deal on your mortgage. We can set up a free, no-obligation chat between you and one of our brokers after you have chosen the kind of mortgage you need on our comparison service.
Compare rates and deals for £600,000 mortgages
You can compare rates and deals on £600k mortgages for free on Teito, choose one you like in real time and consult with an independent mortgage broker before you apply.
Get started here to source your own mortgage online and take advantage of a free, no-obligation chat with a whole-of-market mortgage broker today.
FAQs
All of the mortgage applicants would need a combined income of around £133,350 to qualify for a mortgage of £600,000. This is because most mortgage lenders will let you borrow a maximum of 4.5 times your annual income: 4.5 x 133,350 = £600,075.
If your income doesn’t stretch this far, keep in mind that there are a smaller number of mortgage lenders who will let you borrow 5-6 times annual salary, or declare supplemental income such as any benefits, freelance work on investment income you might have.
In the vast majority of cases you will not be able to borrow the full £600,000 as most mortgages require at least some deposit. The minimum is usually 5-10% of the property value, which in this case would be a deposit amount of between £30,000 and £60,000. This would mean taking out a mortgage of between £570,000 and £540,000.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
