£200,000 mortgage
If you’re thinking about taking out a mortgage, it’s crucial to understand how the monthly cost may differ. The size of your deposit, mortgage term and interest rate will all play a part in how much you’ll need to budget for each month.
For example, on a repayment mortgage of £200,000 over 25 years at an interest rate of 3%, you would normally expect to pay around £948 per month. However, the actual amount could be higher or lower.
When you are ready to start looking for a mortgage, it is important to compare deals to find one that offers the best value for money. Use a mortgage calculator to get an idea of how much different interest rates and terms could cost you each month, and then speak to a mortgage adviser to find a deal that meets your needs.
AS A GUIDE ONLY, THE TABLES BELOW PROVIDE AN INDICATION OF MONTHLY REPAYMENTS.
Interest only mortgage per month
| 200K Interest Only Mortgage | ||||
|---|---|---|---|---|
| 2% | 3% | 4% | 5% | |
| 10 years | £333 | £500 | £667 | £833 |
| 15 years | £333 | £500 | £667 | £833 |
| 20 years | £333 | £500 | £667 | £833 |
| 25 years | £333 | £500 | £667 | £833 |
The above figures only include the mortgage interest, there is no provision for repayment of the capital sum borrowed.
Repayment mortgage per month
| 200K Repayment Mortgage | ||||
|---|---|---|---|---|
| 2% | 3% | 4% | 5% | |
| 10 years | £1840 | £1931 | £2024 | £2121 |
| 15 years | £1287 | £1381 | £1479 | £1581 |
| 20 years | £1011 | £1109 | £1211 | £1319 |
| 25 years | £847 | £948 | £1055 | £1169 |
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 a 200K mortgage will vary according to three main factors:
- The mortgage term (length of time you will be repaying the loan)
- The interest rate charged on the loan
- The size of your deposit
A longer mortgage term will result in lower monthly repayments, as you will be spreading the cost of the loan over a greater period of time. However, it is important to remember that you will pay more interest overall if you take out a longer mortgage.
The interest rate on your mortgage will also have a big impact on the monthly repayments. The lower the interest rate, the less you will need to pay each month.
The size of your deposit affects the amount you need to borrow, and therefore the monthly repayments. The larger the deposit, the smaller the loan and the lower the monthly cost.
Can you get an interest only mortgage?
Interest only is a mortgage type that 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.
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
Can you get a £200,000 buy to let mortgage?
Yes this should be possible, but remember that BTL mortgages are calculated on the rental income from the property.
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.
Are these figures accurate?
Yes the figures are accurate. However, before considering a mortgage you should always obtain a mortgage illustration from your mortgage broker.
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.
Can I afford this mortgage?
This is an important question. We would suggest first using our online mortgage calculator to get familiar with some of the costs, then speak with a mortgage adviser who will confirm the payments.
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.
