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A £450,000 mortgage is a significant financial commitment, so it’s a good idea to do your research and seek professional advice from the outset.
Here you will learn how much you need to earn to get approved for a mortgage of this size, what the repayments would be, and how to get the ball rolling on your application.
How much do you need to earn to get a £450k mortgage?
You will need an annual household income of between £100,000 and £112,500 to qualify for a £450,000 mortgage as most lenders in the UK will let you borrow no more than 4-4.5 times your income. If you don’t earn this amount, you might still have options, though.
There are a minority of lenders who would consider letting you borrow 5-6 times income, if you have a particularly strong application, and it may also be possible to declare any supplemental income you have, like benefits and freelance work, in addition to your salary.
Enter your total household income into our mortgage affordability calculator below to find out whether you earn enough to get approved for a £450k mortgage.
How much will the mortgage repayments be?
The monthly repayments on a £450,000 mortgage would be roughly £2,375. Paying this amount on your mortgage over a standard 25-year term would mean you have repaid a total of £715,580 overall, although most people’s repayments change when they remortgage.
These example calculations were based on a capital repayment mortgage with a 4% interest rate and a 25-year term length to simulate a typical UK mortgage deal.
Your exact repayments on a mortgage of £450k will depend on the interest rate you qualify for, the term you choose and the type of mortgage you take out.
You can use our mortgage repayment calculator below to find out how these factors affect the cost of a £450,000 mortgage.
Factors that determine your mortgage repayments
Here we will explore the main factors that determine your exact mortgage repayments - the interest rate, term length and mortgage type - complete with example calculations.
Interest rate
The interest rate you are eligible for will depend on the strength of your mortgage application and this is largely measured by the amount of deposit you have and your credit history.
The table below shows how the repayments on a £450,000 mortgage can vary across different interest rates. A capital repayment mortgage with a 25-year term was used for these example calculations.
Mortgage Amount | Interest Rate | Monthly Repayments | Overall Repayment |
£450k | 3.5% | £2,253 | £675,842 |
£450k | 4% | £2,375 | £712,580 |
£450k | 4.5% | £2,501 | £750,374 |
£450k | 5% | £2,631 | £789,197 |
£450k | 5.5% | £2,763 | £829,018 |
£450k | 6% | £2,899 | £869,807 |
Term length
A standard mortgage term is 25 years but most lenders will give you the option of a longer or shorter agreement. Mortgages taken over a longer term have lower monthly repayments but can cost more overall due to having more interest instalments to pay.
The table below shows how the term length affects the cost of a £450,000 mortgage (4% interest rate and capital repayment mortgage type used for example calculations.
Mortgage Amount | Term Length | Monthly Repayments | Overall Repayment |
£450k | 10 years | £4,556 | £546,724 |
£450k | 15 years | £3,329 | £599,147 |
£450k | 20 years | £2,727 | £654,459 |
£450k | 25 years | £2,375 | £712,580 |
£450k | 30 years | £2,148 | £773,413 |
£450k | 35 years | £1,992 | £836,844 |
£450k | 40 years | £1,881 | £902,747 |
Mortgage type
The two main factors here are the mortgage’s product type and its repayment type. Different product types, such as fixed-rate mortgage and tracker mortgages, are priced differently with their own rates and fees, so repayments vary across them.
Meanwhile, the repayment type also has a major bearing on your monthly payments. The most common type in the UK residential market is capital repayment, which means you pay off some of your mortgage debt plus interest each month for the duration of the term.
The most common alternative is an interest-only mortgage, which only requires the borrower to make interest payments each month and settle the debt at the end of the term.
The table below shows what the repayments on a £450k mortgage would look like if it was taken out on an interest-only basis across different interest rates over 25 years.
Mortgage Amount | Interest Rate | Interest-only Payments (Monthly) | Overall Repayment |
£450k | 3.5% | £1,313 | £843,750 |
£450k | 4% | £1,500 | £900,000 |
£450k | 4.5% | £1,688 | £956,250 |
£450k | 5% | £1,875 | £1,012,500 |
£450k | 5.5% | £2,063 | £1,068,750 |
£450k | 6% | £2,250 | £1,125,000 |
Buy-to-let mortgages
The repayments on a £450,000 buy-to-let mortgage would be calculated in the same way as they would be for a residential home loan, but they are likely to be higher.
This is because the rates are generally higher for buy-to-let mortgages, but the most common repayment type is interest-only as this helps landlords maximise their profits.
With these factors in mind, the typical repayments for a £450k buy-to-let mortgage would be around £1,688 per month and £956,250 overall. This example calculation used a slightly higher interest rate of 4.5% and the interest-only repayment type.
What to do after running your calculations
Mortgage calculators can only give you a rough idea of how much a £450k 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 £450,000 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 a broker who specialises in £450,000 mortgages? Get started here.
FAQs
A mortgage of £450,000 would be considered relatively large as it is more than double the average size of a UK home loan, but some lenders have a product category for ‘large’ mortgages, and a borrowed amount of £450k would not meet the threshold for this.
‘Large’ mortgages usually start at £500,000 and lenders who have a specific product range for them usually offer exclusive rates and deals for those borrowing this amount or more.
Find your local adviser
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We are committed to providing advice through the channels that best suit your needs. Our brokers can provide advice via phone, email, video and web chat from anywhere in the UK, but we also aim to offer face-to-face appointments for those who request them.