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A mortgage of £500,000 is a big financial commitment, so it’s a good idea to carefully prepare and plan before you enter into such an agreement.
Here you will learn how much you need to earn to afford a £500,000 mortgage, what the repayments will be and how to get one.
How much do you need to earn to get a £500,000 mortgage?
You will need to earn around £110,000 a year to afford a £500,000 mortgage as most mortgage lenders will cap your maximum borrowing at 4.5 times your annual salary.
If you don’t earn this much, there are lenders who stretch to 5-6 times income, but keep in mind that their criteria is usually more stringent than that of other providers.
Use our affordability calculator below to get a rough idea of whether you qualify.
If your income falls short, it might still be possible to get approved for a mortgage of £500k. Some lenders allow borrowers to submit supplemental income, such as benefits or freelance work, alongside their main salary, and others allow up to four applicants on a mortgage.
Get in touch with us to find out what your options are.
How much will the repayments be?
The average monthly payments on a £500,000 mortgage are £2,639, based on typical market conditions in the UK. We worked this figure out based on a capital repayment mortgage with a 4% interest rate taken out over a term length of 25 years.
Paying this amount for your mortgage across the full term would mean paying back a total of £791,755, but most people’s mortgage payments change when they remortgage.
The exact repayments on your mortgage will depend on the rate you qualify for, the type of product you choose and the term length you agree. Use our mortgage repayment calculator below to get an idea of how these variables affect the cost of a £500,000 mortgage.
Factors that will affect your repayments
Here we have broken down the main variables that shape the exact cost of a £500,000 mortgage, complete with example calculations for context.
Interest rate
Mortgage lenders decide which rate to offer you after reviewing the overall strength of your application, specifically how much deposit you have and your credit history.
This table shows how the cost of a £500k mortgage can change depending on the rate you are given. These calculations are for a capital repayment mortgage with a 25-year term.
Mortgage Amount | Interest Rate | Monthly Repayments | Overall Repayment |
£500k | 3.5% | £2,503 | £750,935 |
£500k | 4% | £2,639 | £791,755 |
£500k | 4.5% | £2,779 | £833,749 |
£500k | 5% | £2,923 | £876,885 |
£500k | 5.5% | £3,070 | £921,131 |
£500k | 6% | £3,222 | £966,452 |
Term length
The average mortgage term in the UK is 25 years but most lenders will give you the option of longer or shorter agreements. Longer mortgages have lower monthly payments but cost more overall due to having extra interest instalments to pay.
The table below shows the impact of term lengths on a £500,000 mortgage, with calculations based on a capital repayment mortgage with a 4% interest rate.
Mortgage Amount | Term Length | Monthly Repayments | Overall Repayment |
£500k | 10 years | £5,062 | £607,471 |
£500k | 15 years | £3,698 | £665,719 |
£500k | 20 years | £3,030 | £727,176 |
£500k | 25 years | £2,639 | £791,755 |
£500k | 30 years | £2,387 | £859,348 |
£500k | 35 years | £2,214 | £929,827 |
£500k | 40 years | £2,090 | £1,003,052 |
Mortgage type
The mortgage product type will have a bearing on the cost of a £500k mortgage as fixed rate and variable rate mortgages have their own costs, fees and rates.
The repayment type will be equally relevant as not all mortgages are capital and repayment. Some have an interest only repayment type, which means you would only have to pay off the interest each month and settle the loan debt at the end of the term.
The table below shows how much a £500k mortgage will cost if taken on an interest-only agreement, across different interest rates and a term length of 25 years.
Mortgage Amount | Interest Rate | Interest-only Payments (Monthly) | Overall Repayment |
£500k | 3.5% | £1,458 | £937,500 |
£500k | 4% | £1,667 | £1,000,000 |
£500k | 4.5% | £1,875 | £1,062,500 |
£500k | 5% | £2,083 | £1,125,000 |
£500k | 5.5% | £2,292 | £1,187,500 |
£500k | 6% | £2,500 | £1,250,000 |
How much a £500,000 buy-to-let mortgage costs
The repayments on a £500,000 buy-to-let mortgage are calculated in the same way as they are for residential mortgages, but the main difference to their cost is that interest rates are usually higher. These mortgages are usually agreed on an interest-only basis too.
With these factors in mind, the typical cost of a £500,000 buy-to-let mortgage would be around £1,875 per month, which would mean paying £1,062,500 across a 25-year term.
An example rate of 4.5% and an interest-only payment type was used for this calculation.
Applying for a £500,000 mortgage
Mortgage calculators can only give you a rough idea of how much a £500k 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 £500,000 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 £500,000 mortgages? Get started here.
Find your local adviser
Frequently Asked Questions
Below you will find the answers to the questions we hear most often from Echo Finance customers:
A mortgage broker, or a mortgage advisor, is an intermediary who acts as a conduit between an aspiring borrower and a lender. It is their job to provide the mortgage applicant with impartial advice, help them choose the right product and arrange the deal with the lender.
Brokers provide services including advice on which type of mortgage to choose, providing access to exclusive rates through their lender contacts, and application support. Some can offer advice on all areas of the mortgage market, while others specialise in niche fields such as buy-to-let, bad credit, commercial finance, first-time buyers or self-employed borrowers.
People choose to apply for their mortgage through a broker because it can boost their chances of finding the right deal, while saving time and money in the long run.
- Residential mortgages: Everything from fixed-rate to tracker mortgages for first-time buyers, homemovers and remortgage borrowers
- Specialist mortgages: For borrowers who fall outside of standard lending criteria, including people with bad credit, self-employed professionals and more
- Later-life lending: Including advice on equity release, mortgages for pensioners and retirement interest only (RIO) mortgages
- Bridging & Commercial: We have specialist advisors on hand for commercial mortgages, bridging loans, development finance and more
- Insurance & Protection: Including life, home and critical illness cover for families and individuals, as well as landlord and business protection insurance
Echo Finance is regulated by the Financial Conduct Authority and is reviewed annually by an independent compliance company. All of our brokers and advisers hold industry-standard qualifications, such as CeMAP, CeRER and DipMap, where required.
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.
Frequently Asked Questions
The mortgage amount doesn’t usually make a difference to the rate you are offered, so they are no different for £500,000 loans compared to larger or smaller amounts.
The rate you qualify for will depend on how much deposit you have (the more, the better) and how clean your credit history is, among other factors.