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Here you will learn what factors determine the cost of a mortgage of this size, how to calculate it yourself, and what to do after tallying up those numbers.
Calculate the cost of your £400k mortgage repayments
Example:
The monthly cost of a £400,000 mortgage is approximately £2,111. These would be your repayments if you were to take out a home loan of this amount on a capital repayment basis with a 4% interest rate over 25 years, which is representative of an average UK mortgage.
If you were to take out this exact mortgage, you would repay a total of £633,404 by the end of the term, but keep in mind that your repayments may change if you remortgage.
The exact cost of your mortgage repayments can vary depending on the type of mortgage you choose, the interest rate you qualify for and the term length you agree.
Once you have worked out your potential costs, it’s a good idea to speak to a mortgage broker to find out more about your mortgage options. You can get started with a member of our team below.
Speak to a mortgage expert
Factors that impact the cost of your mortgage
The true cost of your £400k mortgage will depend on the interest rate, term length, and the type of mortgage you choose. Here we will break down how these variables come into play.
Interest rate
The interest rate a mortgage lender is willing to offer you will depend on the overall strength of your application, but largely on the amount of deposit you have and your credit history.
The table below shows how the cost of a £400k mortgage can vary across different rates.
Mortgage Amount | Interest Rate | Monthly Repayments | Overall Repayment |
£400k | 3.5% | £2,002 | £600,748 |
£400k | 4% | £2,111 | £633,404 |
£400k | 4.5% | £2,223 | £666,999 |
£400k | 5% | £2,338 | £701,508 |
£400k | 5.5% | £2,456 | £736,905 |
£400k | 6% | £2,577 | £773,162 |
Term length
Standard mortgage terms in the UK are 25 years but longer and shorter agreements are available. Taking out a £400,000 mortgage over a longer period means paying less each month, but more in interest overall and therefore a higher amount in the long run.
The table below shows how the cost of a £400k mortgage can vary over different terms.
Mortgage Amount | Term Length | Monthly Repayments | Overall Repayment |
£400k | 10 years | £4,050 | £485,977 |
£400k | 15 years | £2,959 | £532,575 |
£400k | 20 years | £2,424 | £581,741 |
£400k | 25 years | £2,111 | £633,404 |
£400k | 30 years | £1,910 | £687,478 |
£400k | 35 years | £1,771 | £743,862 |
£400k | 40 years | £1,672 | £802,442 |
Mortgage type
Different mortgage product types such as fixed and tracker mortgages have their own specific interest rates, so cost will vary depending on which option you go for.
In addition to the mortgage product type, the repayment type you choose will also have a bearing on the repayments for a £400k mortgage. The most common type in the UK is capital repayment, with which you repay some of the debt plus interest each month.
The main alternative is interest-only, which would involve paying only the interest on your £400k mortgage each month and settling the loan at the end of the term. The table below shows what this would mean for the monthly payments on a mortgage of £400k.
Mortgage Amount | Interest Rate | Interest-only Payments (Monthly) | Overall Repayment (Interest-Only) |
£400k | 3.5% | £1,167 | £750,000 |
£400k | 4% | £1,333 | £800,000 |
£400k | 4.5% | £1,500 | £850,000 |
£400k | 5% | £1,667 | £900,000 |
£400k | 5.5% | £1,833 | £950,000 |
£400k | 6% | £2,000 | £1,000,000 |
Our expert says
“Borrowers applying for a £400,000 mortgage may run into hurdles if they are self-employed or company directors. While standard salary multiples require around £88,900 in earnings, mainstream lenders often only look at salary and drawn dividends.
If you retain profits within your business, selecting a specialist lender who assesses share of net profit prior to tax, rather than just personal drawings, can easily increase your borrowing limit by tens of thousands without needing extra income.”
John Tarazi How much do you need to earn to get a £400k mortgage?
Enter your total household income into our calculator below to get a rough idea of whether you earn enough to afford a £400,000 mortgage.
Example:
Mortgage lenders in the UK let eligible applicants borrow around 4.5 times their annual salary, so you would need to earn between £90k and £100k bracket. However, a smaller number of lenders will stretch to 5-6 times salary under the right circumstances.
Other amounts
If you need to borrow slightly more than £400k, you may find the following pages useful:
Get bespoke calculations and expert mortgage advice
Mortgage calculators can only give you a rough idea of how much a £400k mortgage will cost and whether you can afford one, but if you speak to one of our expert mortgage brokers, they can provide you with bespoke calculations and advice about your options.
Our advisers have access to the entire market and can match you with your ideal lender for a £400,000 mortgage, having explored every possible alternative.
Here are just some of the reasons people choose Echo Finance for their mortgage:
Our advisers will compare deals from 90+ lenders for you
We can access exclusive mortgage rates
Our service is 5-star rated on leading review sites
Your first consultation is free with no obligation to proceed
Ready to take advantage of a free, no-obligation chat with an expert broker? Speak to us about your £400,000 mortgage options
FAQs
The repayments on a buy-to-let mortgage are calculated in exactly the same way as a residential home loan, so you can use the calculator on this page to work this out.
Rates on buy-to-let mortgages can be higher than and most are offered on an interest-only basis, so with this in mind, the typical cost of a £400,000 buy-to-let mortgage is £1,500 per month, a figure calculated based on a 25-year term and a rate of 4.5%.
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