£350,000 mortgage
When considering taking out a new mortgage, one of the key things to think about is how much it is going to cost you each month. This can vary quite significantly depending on the type of mortgage you go for, as well as the size of your deposit and the interest rate you are offered.
We get lots of people asking us about £350k mortgages. One of the most common questions is ‘how much will my mortgage cost me each month?’
The answer to this question really depends on a number of factors, including the type of mortgage you choose, the size of your deposit and the interest rate you are offered.
To give you an idea of how much a your mortgage might cost each month, we’ve put together some examples below. Please bear in mind that these are only examples – your actual monthly payments will depend on your personal circumstances and the deal offered by your lender.
As a guide only, the tables below provide an indication of monthly repayments.
Interest only mortgage per month
| 350K Interest Only Mortgage | ||||
|---|---|---|---|---|
| 2% | 3% | 4% | 5% | |
| 10 years | £583 | £875 | £1167 | £1458 |
| 15 years | £583 | £875 | £1167 | £1458 |
| 20 years | £583 | £875 | £1167 | £1458 |
| 25 years | £583 | £875 | £1167 | £1458 |
The above figures only include the mortgage interest, there is no provision for repayment of the capital sum borrowed.
Repayment mortgage per month
| 350K Repayment Mortgage | ||||
|---|---|---|---|---|
| 2% | 3% | 4% | 5% | |
| 10 years | £3220 | £3379 | £3543 | £3712 |
| 15 years | £2252 | £2417 | £2588 | £2767 |
| 20 years | £1770 | £1941 | £2120 | £2309 |
| 25 years | £1483 | £1659 | £1847 | £2046 |
The above figures include both capital and interest combined into one monthly payment.
CONTACT A MORTGAGE BROKER
If you are ready to take the next step then we can put you in touch with a fully qualified independent mortgage broker.
What affects the monthly payment figure?
When considering taking out a new mortgage, it’s important to think about how much it’s going to cost you each month. Some of the factors that will determine how much your 350,000 mortgage costs each month include the type of mortgage you choose, the size of your deposit, and the interest rate you’re offered.
The type of mortgage you choose will have the biggest impact on your monthly payments. For example, if you opt for a fixed rate mortgage, your interest rate and monthly payments will stay the same for a set period of time, usually between 2 and 5 years. Variable rate mortgages, on the other hand, can go up or down depending on changes in the market. This means your monthly payments could increase or decrease over time.
The size of your deposit will also affect how much you pay each month. The larger your deposit, the less you’ll need to borrow and the lower your monthly payments will be. In general, it’s a good idea to try to save as much as you can for a deposit to keep your monthly payments down.
Finally, the interest rate you’re offered will also affect your monthly payments. The higher the mortgage interest rate, the more you’ll have to pay each month. It’s important to shop around and compare rates from different mortgage providers to make sure you get the best deal possible.
By taking all of these factors into account, you can get a better idea of how much your mortgage is going to cost each month. By doing your research and budgeting carefully, you can ensure that you find a mortgage that works for you and your finances.
Can you get an interest only mortgage?
An interest only mortgage is normally offered by most lenders. However, they will be keen to understand how you intend to pay back the mortgage before approving this request.
A guide to interest only mortgages
What’s the best mortgage term?
The best mortgage term is the one that fits your situation. Most people opt for a term of 25-30 years at the beginning of their house buying journey. Lenders are more willing to offer longer terms and allow borrowers to have a mortgage later in life. If your mortgage runs past age 65 you are likely to be classed as borrowing in retirement and lenders tend to be stricter on your future ability to earn an income.
How do I make my monthly payments cheaper?
Making the following changes to your mortgage will reduce the monthly payments:
- REDUCE THE MORTGAGE AMOUNT – A little obvious but by borrowing less your monthly payments will be less.
- EXTEND THE MORTGAGE TERM – A repayment mortgage will be cheaper over 30 years compared to 25 years.
- CHEAPER INTEREST RATE – By getting a better deal on your interest rate will enable your payments to reduce.
- CHANGE TO AN INTEREST ONLY MORTGAGE – This will make your payments considerably cheaper. However, you will not be repaying the mortgage anymore.
You should seek advice from a mortgage broker before making any of these changes.
FAQ
Frequently Asked Questions
How do I get the best mortgage deal?
By using an independent mortgage broker you will have access to thousands of different schemes and rates.
Will I have to prove my income?
Yes, lenders need to ensure that any mortgage is affordable so they will want to see proof of your income, and possibly expenditure as well.
What does LTV mean?
LTV is loan to value. It is the ratio, expressed as a percentage, of your mortgage when compared to the property value.
Do you have an online calculator?
Yes we have many helpful online mortgage calculators to help people work out the cost of a mortgage and moving home.
How much Stamp Duty will I pay?
The amount of Stamp Duty payable will be confirmed by your Solicitor. You may find our Stamp Duty calculator handy to give you a rough idea.
What is APRC?
APRC stands for Annual Percentage Rate of Charge. It is a standard interest rate calculation designed to reflect the total amount of interest that will be paid over the entire period of the loan.
