What's the monthly repayment on a £250,000 mortgage? | Beehive Money (2024)

On the lookout for a new house? If you’re looking to buy a property with a £250,000 mortgage you might be wondering how much your monthly repayments could be. As with all mortgages, they’ll vary depending on your term, interest rates and the size of your deposit. To help you get an idea of what your repayments could be, have a look at the comparison table that we’ve put together for you based on interest rates and terms.

250,000 mortgage repayments

These figures should only be treated as a guide and not mortgage advice. These figures are all based on a repayment mortgage, not an interest only mortgage and calculated with the Money Helper mortgage calculator using a 10% deposit.

Your home may be repossessed if you do not keep up repayments on your mortgage.

How much deposit do I need for a £250,000 mortgage?

• Lenders generally offer mortgages to people who can provide a minimum deposit of 5-10%.
• 5% would equate to £12,500 for a £250,000 mortgage but bear in mind that your monthly repayments will be higher with a lower deposit.
• Sometimes, lenders may prefer up to a 15% deposit which would be £37,500 for a £250,000 mortgage.
• Every lender is different and there are lots of factors that contribute to whether your mortgage application will be accepted such as household income, credit score and employment history.

Can I afford a £250,000 mortgage?

Affording a £250,000 mortgage will depend on lots of different things, including your initial deposit as mentioned above, as well as your income and other debts. You’ll need to be sure that you can afford the monthly repayments before they accept your application. Firstly, you’ll need a household income that can cover the monthly repayments and a larger deposit will also support your case.

A good place to start is by calculating your monthly salary, take into account any other regular outgoings that you have and comparing this to the monthly payments, bearing in mind mortgage terms and interest rates. We’ve got a downloadable budget planner which can be helpful when writing everything down.

FAQs

Does being self-employed affect getting a £250,000 mortgage?

Salary is understandably one of the biggest factors in your eligibility for a mortgage as it’s how the lender sees that you’re able to pay back the loan. Certain lenders can be reluctant to offer mortgages to self-employed people, especially if it’s hard to prove that you earn enough annually to cover your repayments. It’s not impossible though, especially if you have a history of earning enough income to cover your monthly mortgage payments and you can easily show this to your lender.

You’ll need to show them between one to three years of accounts to prove you have sufficient profit and income from your business and you’ll be able to prove you have the deposit too. If you've sent your Self-Assessment tax return to HMRC for the past four years Tax Overviews or a SA302 will be enough. You can also show lender work records, details of upcoming projects or retained accounts. Read our self-employed mortgage guide for some more tips on this scenario.

How much do I need to earn for a £250,000 mortgage?

If you’re a PAYE earner, mortgage lenders will generally lend up to four times your annual salary. If you don’t currently earn this, you could consider applying for the mortgage with somebody else like a partner. The mortgage lender will factor in your household income, but you should make sure you can afford the payments together with your other monthly outgoings. Check out The Nottingham’s managing money as a couple article if you're interested in being more open with your other half about your finances.

Can you get £250,000 buy to let mortgages?

There isn’t an upper limit for buy to Let mortgages, but you’ll generally need a larger deposit than if you were buying somewhere to live yourself. Many buy to let mortgages are interest-only and come with their own specific terms such as you may have to already own another property, and you should be prepared to pay a 25% deposit.

There may be more costs in the short term, plus longer terms and higher interest rates. Many factors can affect your application, including your age and income as well as the credit and employment factors that we’ve mentioned before.

Can you get £250,000 interest-only mortgages?

Yes, £250,000 interest-only mortgages are available but there are some things to consider which we’ve listed below. Of course, the lender will ask to see evidence that you’re able to repay this loan such as your income and credit score.

• No capital (the amount you borrow) is repaid unless you make overpayments.
• As you’re not paying off a part of the loan each month, you’ll need a way of paying off the whole value of the loan when you’ve reached the end of the term.
• Many buy to let mortgages are interest-only, so you might be able to use any saved income from rent payments to pay it off at the end of the term.