£700,000 mortgage
If you are thinking about buying a home, you’ll need to know how much your monthly repayments will be. Your monthly repayments will depend on a number of factors, including the mortgage term, the interest rate and the size of your deposit.
When you start looking for a £700,000 mortgage, we can help you compare a range of deals from leading lenders who offer large loans. So, whether you’re a first-time buyer or you’re remortgaging, we can help you find a great deal on your £700K mortgage.
So how much will your mortgage cost each month? To give you an idea, we’ve calculated the monthly repayments for a few different mortgage terms, at a range of interest rates.
For example, if you took out a £700,000 mortgage with a term of 25 years and an interest rate of 3%, your monthly repayments would be approximately £3,319. But if the interest rate was 4%, your monthly repayments would increase to around £3,694.
As a guide only, the tables below provide an indication of monthly repayments.
Interest only mortgage per month
| 700K Interest Only Mortgage | ||||||
|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | |
| 10 years | £1167 | £1750 | £2333 | £2917 | £3500 | £4083 |
| 15 years | £1167 | £1750 | £2333 | £2917 | £3500 | £4083 |
| 20 years | £1167 | £1750 | £2333 | £2917 | £3500 | £4083 |
| 25 years | £1167 | £1750 | £2333 | £2917 | £3500 | £4083 |
| 30 years | £1167 | £1750 | £2333 | £2917 | £3500 | £4083 |
The above figures only include the mortgage interest, there is no provision for repayment of the capital sum borrowed.
Repayment mortgage per month
| 700K Repayment Mortgage | ||||||
|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | |
| 10 years | £6440 | £6759 | £7087 | £7424 | £7771 | £8127 |
| 15 years | £4504 | £4834 | £5177 | £5535 | £5907 | £6291 |
| 20 years | £3541 | £3882 | £4241 | £4619 | £5015 | £5427 |
| 25 years | £2966 | £3319 | £3694 | £4092 | £4510 | £4947 |
| 30 years | £2587 | £2951 | £3341 | £3757 | £4196 | £4657 |
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?
Your monthly payment is determined by your mortgage term, interest rate and the size of your deposit.
Mortgage term: this is the length of time you have to repay your mortgage. The most common mortgage terms are 25 years and 30 years, but you can choose a shorter or longer term if you wish. As property prices continue to stretch first time buyers mortgage terms are getting longer, with many choosing ‘marathon’ mortgage terms of 40 years.
Interest rate: this is the percentage of the loan that you will pay in interest. The lower the interest rate, the lower your monthly repayments will be. Having a fixed rate won’t change the amount you pay but it does allow you to accurately budget for your mortgage costs during the fixed rate term.
Deposit: this is the amount of money that you put towards the purchase of your property. The larger your deposit, the lower your monthly repayments will be.
Should I pay a bigger deposit?
Putting down a higher deposit will reduce your monthly repayments, as you will be borrowing less money. It may also help you to get a better interest rate on your mortgage, because of the lower LTV percentage.
If you can afford to put down a bigger deposit, it could save you money in the long run. However, you should only do this if you are comfortable with the amount of money you have left over. If the deposit is totally funded by your equity then accruing some additional savings is the only way to increase this.
You will find more useful information in our Guide To Deposits
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.
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. The common choice used to be 25 years but lenders now recognise that borrowers need to borrow more and therefore need extra time to pay it back.
It’s not uncommon for mortgages of 35-40 years to be approved. This obviously helps to keep the payments affordable but the debt will be with you for much longer.
With a 5% interest rate, your £700,000 mortgage will cost £4092pm over 25 years and £3757pm over 30 years.
With longer terms you need to be careful of your age. Lenders will look at how old you are when the mortgage is due to end, and will assess whether this is actually feasible for you. Someone who is 40 now is unlikely to be granted a standard mortgage for 35 or 40 years as they will be well into retirement when it’s due to end.
How do I make my monthly payments cheaper?
Several strategies could help make your mortgage payments more affordable.
Reduce the Mortgage Amount:
- This might seem obvious, but it’s the most direct way to lower payments.
- Increasing your deposit means borrowing less, resulting in smaller monthly payments.
Extend the Mortgage Term:
- Spreading your repayment over a longer period (e.g., 30 years instead of 25) reduces your monthly payments.
- Important: You’ll end up paying more in interest overall with a longer term.
Get a Lower Interest Rate:
- A lower rate directly translates to lower monthly costs.
- Consider remortgaging (switching to a new mortgage deal)
Switch to Interest-Only (With Caution):
- You’ll only pay the interest on your loan, significantly lowering monthly payments.
- Be Aware: You won’t be paying off the original loan amount. You’ll need a plan to repay the full mortgage eventually.
Consider a Part and Part Mortgage:
- The ‘part and part‘ hybrid option combines interest-only and repayment elements.
- It can offer a compromise between lower payments and gradually reducing the debt.
Look into mortgage offsetting:
- An offset mortgage uses your cash savings to reduce the cost
- You only pay interest on the net balance (debt minus savings)
You should seek advice from a mortgage broker before making any of these changes.
How much do you need to earn for a £700,000 mortgage?
A £700,000 mortgage requires a significant income to qualify.
As a general guideline, most lenders use a multiple of your annual salary to determine your borrowing potential, often capping it at around 4.5 times your income.
So for a £700,000 mortgage, you might need a household income of roughly £150,000 per year or more.
If you’re applying for a joint mortgage with a partner, lenders will combine your incomes, increasing your borrowing capacity.
Are you a ‘professional’?
If you’re a qualified professional – perhaps an accountant, doctor, solicitor, or engineer – special professional mortgages might be accessible to you due to your career’s perceived lower risk and longevity.
A ‘professional mortgage’ caters to individuals in certain occupations that are generally regarded as stable and well-paid.
Careers such as medical professionals, teachers, architects, and surveyors also qualify. You can often obtain more favourable terms, such as higher borrowing multiples or lower deposit requirements.
In our quest for a £700,000 mortgage, a qualifying professional may only need an income of £115,000-£140,000, using enhanced multiples.
FAQ
Frequently Asked Questions
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.
Are these figures accurate?
Yes the figures are accurate. However, before considering a mortgage you should always obtain a mortgage quotation from your mortgage broker.
Why would I need a broker?
A mortgage broker’s job is to save you time by searching for the most appropriate mortgage and to then liaise with the lender until the mortgage is approved.
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.
What is a key facts illustration?
When a mortgage adviser recommends a mortgage, they must give you a key facts illustration (KFI) document before you apply. This is a mortgage quotation which details the costs and fees for the mortgage.
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.
