£750,000 mortgage
There are a few things to consider when taking out a mortgage, such as the interest rate and the term of the loan.
For someone looking to borrow £750,000 or more, it could be important to find a mortgage with a low interest rate and a long term so that the monthly payments are affordable. There are many different types of mortgages available, so it is important to compare different offers before deciding which one is right for you.
How will your monthly payments be affected by the interest rate and length of the loan term?
The interest rate is the amount of money that you will be charged for borrowing the money, and the term is the length of time that you have to repay the loan. The longer the term, the lower your monthly payments will be, but you will end up paying more in interest over the life of the loan.
What are some of the risks associated with taking out a large mortgage loan like this one?
The main risk associated with taking out a large mortgage loan is that you could end up being unable to afford the monthly payments if your circumstances change. This could happen if you lose your job or have an unexpected decrease in income. If you are not able to make the payments, you could end up losing your home. Another risk is that interest rates could rise over the term of the loan, which would increase your monthly payments.
As a guide only, the tables below provide an indication of monthly repayments.
Interest only 750000 mortgage per month
| 750K Interest Only Mortgage | ||||
|---|---|---|---|---|
| 2% | 3% | 4% | 5% | |
| 10 years | £1250 | £1875 | £2500 | £3125 |
| 15 years | £1250 | £1875 | £2500 | £3125 |
| 20 years | £1250 | £1875 | £2500 | £3125 |
| 25 years | £1250 | £1875 | £2500 | £3125 |
The above figures only include the mortgage interest, there is no provision for repayment of the capital sum borrowed.
Repayment 750000 mortgage per month
| 750K Repayment Mortgage | ||||
|---|---|---|---|---|
| 2% | 3% | 4% | 5% | |
| 10 years | £6901 | £7242 | £7593 | £7954 |
| 15 years | £4826 | £5179 | £5547 | £5930 |
| 20 years | £3794 | £4159 | £4544 | £4949 |
| 25 years | £3178 | £3556 | £3958 | £4384 |
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 mortgage payment is affected by the interest rate, the term of the loan, and the amount borrowed.
The interest rate will determine how much interest you will pay on the loan, and the term of the loan is the length of time you have to repay the loan. The amount borrowed is the principal of the loan, and this amount will be paid back with interest over the term of the loan.
There are a few things to consider before taking out a 750k mortgage, such as your financial situation and your long-term goals.
It is important to make sure that you can afford the monthly payments and that you are comfortable with the amount of debt you will be taking on. You should also think about whether you want a fixed-rate or variable-rate mortgage. Fixed-rate mortgages have interest rates that stay the same for a fixed period, while variable-rate mortgages have interest rates that can fluctuate.
You should also compare different mortgage offers to find the one that is right for you. Make sure to consider the interest rate, the term of the loan, and any fees or charges associated with the loan. You can use a mortgage calculator to compare different offers and see what your monthly payments would be.
How much do you need to earn for a £750,000 mortgage?
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 will pay back the £750,000 you intend borrowing before approving this request.
Can I change my mortgage to interest only?
What’s the best mortgage term?
The best mortgage term is the one that works best for you.
Most people opt for a term of 25-30 years at the beginning of their house buying journey. In this article we answer the question What is the longest mortgage term you can get? as there is a trend towards marathon mortgages, which have terms of 35-40 years. If you’re already in a mortgage it could be possible to ask your lender to extend the mortgage term.
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 long do fixed rates last for?
When applying for a mortgage many borrowers choose to have a fixed rate. These are offered over specific terms, usually between 1 – 10 years.
How does a repayment mortgage work?
With a £750K 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.
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 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.
How much does a £725,000 mortgage cost?
For more specific mortgage amounts we recommend using our online mortgage calculator.
Is it worth paying for a mortgage broker?
In most cases, yes. A broker is a mortgage expert. So they can quickly find the best deal from all of those available, saving you time and money.
