£450,000 mortgage
When looking to take out a £450K mortgage the first question you will need to ask is how much you can afford to repay each month. This amount is determined by your income, debts and other financial commitments.
Let’s see how much a £450K mortgage might cost you each month, the sort of deposit you’ll need, and how to get a great deal. The size of your deposit and the length of time you borrow for will have a direct impact on your monthly repayments.
The deposit is important as it reduces the amount you need to borrow, and therefore the amount of interest you’ll be charged.
For example, a £450 000 mortgage over 30 years will have lower monthly repayments than the same mortgage over 25 years, but you’ll pay more interest overall.
As a guide only, the tables below provide an indication of monthly repayments.
Interest only 450000 mortgage per month
| 450K Interest Only Mortgage | ||||
|---|---|---|---|---|
| 2% | 3% | 4% | 5% | |
| 10 years | £750 | £1125 | £1500 | £1875 |
| 15 years | £750 | £1125 | £1500 | £1875 |
| 20 years | £750 | £1125 | £1500 | £1875 |
| 25 years | £750 | £1125 | £1500 | £1875 |
The above figures only include the mortgage interest, there is no provision for repayment of the capital sum borrowed.
Repayment 450000 mortgage per month
| 450K Repayment Mortgage | ||||
|---|---|---|---|---|
| 2% | 3% | 4% | 5% | |
| 10 years | £4140 | £4345 | £4556 | £4772 |
| 15 years | £2895 | £3107 | £3328 | £3558 |
| 20 years | £2276 | £2495 | £2726 | £2969 |
| 25 years | £1907 | £2133 | £2375 | £2630 |
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?
The monthly cost of your mortgage will vary according to a few factors.
The most significant factor is usually the interest rate, as this will determine how much you’ll be repaying each month in interest charges.
Other important factors include:
- the term of the mortgage (the length of time over which you’ll be repaying the loan). The longer the term, the more interest you’ll pay overall, but the lower your monthly repayments will be.
- the size of the loan (the total amount you’re borrowing). Obviously, the larger the loan, the higher your monthly repayments will be
- any fees or charges that may be associated with the loan as these are often added.
- The mortgage repayment method.
What is a good monthly repayment figure?
The answer to this question will depend on your personal circumstances. You’ll need to consider how much you can afford to repay each month without stretching your finances too much. It’s important to remember that your monthly repayments may go up or down depending on changes to interest rates, so you’ll need to make sure you can afford any increases.
To get an idea of how much you might be able to afford to repay each month, you can use an online mortgage calculator. This will give you an estimate of your monthly repayments based on the information you enter, such as the loan amount, interest rate and term.
It’s also a good idea to speak to a mortgage adviser who can help you find a mortgage that’s right for your circumstances and provide more accurate figures for your monthly repayments.
Can you get an interest only mortgage?
An interest only mortgage option is offered by most lenders, although many will restrict the LTV to 75% or below. However, they will be keen to understand how you intend to pay back the mortgage before approving this request.
Our 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, to help keep the monthly payments affordable.
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
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. Check out our LTV calculator.
How does a repayment mortgage work?
With a £450,000 repayment mortgage over 25 years the lender has to calculate how much to charge you each month so that the loan is fully repaid at the end. So each month you will pay some interest and some capital.
How much does a £475,000 mortgage cost?
For more specific mortgage amounts we recommend using our online mortgage calculator.
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.
How do I get the best deal?
By using an independent mortgage broker you will have access to thousands of different schemes and rates.
How do I apply?
We recommend that you first talk to an experienced mortgage broker who will be able to confirm the cost of a mortgage and then help you to apply.
