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A mortgage of £100,000 would be considerably below the national average in the UK, but you should always do your research before applying for one.
Here you will learn all you need to know about getting a mortgage of this amount, including how much you need to earn, what the repayments will be and more.
How much do you need to earn to get a £100k mortgage?
You would need to earn somewhere between £18,000 and £25,000 per year to get approved for a mortgage of £100,000. This is because mortgage lenders in the UK will cap your maximum borrowing at between 4.5 and 6 times your annual salary.
However, keep in mind that the higher income multiples (5 times income or higher) can be more difficult to obtain, as the majority of lenders won’t go higher than 4.5.
Use our affordability calculator below to work out whether your income stretches far enough.
If you are applying for a joint mortgage of £100k, both salaries will be taken into account, so it’s your household income, not your individual earnings, that needs to fall within this range.
For applicants who don’t earn between £18,000 and £25,000, it may also be possible to declare supplemental income, such as benefits or freelance work, to make up any shortfall.
What will your mortgage payments be?
The repayments on a £100k mortgage will be roughly £528 per month, if taken out on a capital repayment basis over a 25-year term with an interest rate of 4%. You will have repaid £158,351 by the end of the agreement if these variables remain consistent.
This example is representative of a typical mortgage of this amount, but the exact repayments on a £100k mortgage can vary depending on the product type, repayment type, the interest rate you are offered and the term length you agree with the lender.
You can use our repayment calculator below to compare results across these factors:
Factors that determine the cost of a £100k mortgage
The factors we have already discussed will determine exactly how much your £100,000 mortgage will cost each month and overall. Here you will find a collection of tables full of example calculations to add context to the variables we have already highlighted.
Interest rate
The interest rate you qualify for will be determined by the strength of your application, determined by the amount of deposit you have, your credit history and other factors.
The table below shows how the cost of a £100k can vary across different interest rates. A 25-year term length and capital repayment mortgage type were used for example purposes.
Mortgage Amount | Interest Rate | Monthly Repayments | Overall Repayment |
£100k | 3.5% | £501 | £150,187 |
£100k | 4% | £528 | £158,351 |
£100k | 4.5% | £556 | £166,750 |
£100k | 5% | £585 | £175,377 |
£100k | 5.5% | £614 | £184,226 |
£100k | 6% | £644 | £193,290 |
Term length
The longer the term you choose for your £100k mortgage, the lower the monthly payments will be, but you will pay more in interest overall if you take the loan out over a longer period.
The table below puts this into perspective with example calculations for a mortgage taken out on a capital repayment mortgage with an interest rate of 4%.
Mortgage Amount | Term Length | Monthly Repayments | Overall Repayment |
£100k | 15 years | £791 | £142,343 |
£100k | 20 years | £660 | £158,389 |
£100k | 25 years | £585 | £175,377 |
£100k | 30 years | £537 | £193,256 |
£100k | 35 years | £505 | £211,969 |
£100k | 40 years | £482 | £231,454 |
How much a £100k interest-only mortgage costs
Capital repayment is the most common repayment type for a UK mortgage, but an alternative exists in the form of interest-only mortgages, where only the interest is payable each month and the debt is settled with a ‘repayment vehicle’ at the end of the term.
The table below shows what the monthly and overall repayments would be on a £100k interest-only mortgage across different rates with a term length of 25 years.
Mortgage Amount | Interest Rate | Interest-only Payments (Monthly) | Overall Repayment |
£100k | 3.5% | £292 | £187,500 |
£100k | 4% | £333 | £200,000 |
£100k | 4.5% | £375 | £212,500 |
£100k | 5% | £417 | £225,000 |
£100k | 5.5% | £458 | £237,500 |
£100k | 6% | £500 | £250,000 |
£100k buy-to-let mortgages
Buy-to-let mortgage (BTL) affordability is calculated differently to residential mortgages, with lenders basing it on projected rental income, rather than your personal salary.
To get approved for a £100k buy-to-let mortgage, most lenders will want to see a rental income forecast that exceeds the mortgage payments by 125-145%.
The repayments on a buy-to-let mortgage are calculated in the same way as residential mortgage payments, but interest rates are usually higher and most buy-to-let mortgages are taken out on an interest-only basis.
The table below shows typical repayments for a £100k buy-to-let mortgage, with calculations based on a 4.5% interest rate and a interest-only repayment type:
| Mortgage Amount (BTL) | Mortgage Term (Years) | Monthly Repayment (Interest-Only) | Total Repaid (Interest-Only) |
| £100k | 10 | £375.00 | £145,000 |
| £100k | 15 | £375.00 | £167,500 |
| £100k | 20 | £375.00 | £190,000 |
| £100k | 25 | £375.00 | £212,500 |
| £100k | 30 | £375.00 | £235,000 |
How to apply for a £100,000 mortgage
The right way to apply for a £100,000 mortgage is to speak to a mortgage broker before approaching any lenders, as they can grant you access to a wider range of deals.
Whole-of-market brokers, like the advisers at Echo Finance, often have access to exclusive rates and deals for borrowers like you, and can help you choose the right option.
Here are just some of the reasons you should talk to us before you apply:
Your first consultation with your broker will be free
They can help you compare every deal on the market
Exclusive rates might be available to you
We can help you secure an agreement in principle in minutes
Ready to take advantage of a free, no-obligation chat with a broker who specialises in £100,000 mortgages? Get started here.
FAQs
No. The average mortgage size in the UK is more than twice this amount, so £100,000 would not be considered a large mortgage amount, but that doesn’t necessarily mean it is easier to qualify for than smaller mortgage size, so expect advice is always recommended.
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