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A mortgage of £600,000 is a big investment and a potentially life-changing commitment, so it’s always wise to do your homework before applying for one.
In this guide, you will learn how much you need to earn to qualify for a mortgage of this size, what the repayments will be and how to make your application.
Here’s a quick summary of everything you need to know about £600k mortgages:
You generally need a household income of around £133,350 to get one
The average monthly repayments on a mortgage of this amount are £3,167
The best way to apply for a £600k mortgage is through a mortgage broker
How much do you need to earn to get a £600,000 mortgage?
Most UK mortgage lenders will let you borrow no more than 4.5 times your annual salary, so you would need income of around £133,350 to qualify for a £600k mortgage.
If your household income doesn’t stretch far enough, there are a minority of lenders who will let you borrow 5-6 times salary, but their criteria is often more stringent.
Other ways to stretch your maximum borrowing include finding a lender who will let you include supplemental income, such as benefits or freelance work, in your affordability assessment, and applying for a mortgage with more than one other applicant.
Use our affordability calculator below to get a rough idea of your maximum borrowing.
What will the mortgage repayments be?
The average monthly repayments on a £600,000 mortgage are around £3,167. This figure was calculated based on a typical UK mortgage loan, which would have a 4% interest rate, a 25-year term length and be taken out on a capital repayment basis.
Paying this amount for your mortgage over 25 years would mean repaying £950,106 by the end of the term, but most people’s mortgage payments change when they remortgage.
The exact payments on a £600k mortgage will depend on the interest rate you qualify for, the term length you agree and the type of mortgage product you opt for.
You can use our mortgage repayment calculator below to get a rough idea of how much the repayments will be on your £600,000 mortgage.
Factors that determine your mortgage repayments
In this section we will break down the main factors that determine the exact repayments on a £600,000 mortgage, complete with example calculations for context.
Interest rate
To get the best interest rate on the market, you will need plenty of deposit and a good credit history. The stronger your application, the better your chances of securing a low rate.
The table below shows how the cost of a £600k mortgage can vary across different rates. These calculations are for a capital repayment mortgage taken over 25 years.
Mortgage Amount | Interest Rate | Monthly Repayments | Overall Repayment |
£600k | 3.5% | £3,004 | £901,122 |
£600k | 4% | £3,167 | £950,106 |
£600k | 4.5% | £3,335 | £1,000,498 |
£600k | 5% | £3,508 | £1,052,262 |
£600k | 5.5% | £3,685 | £1,105,357 |
£600k | 6% | £3,866 | £1,159,743 |
Term length
The average mortgage term in the UK is 25 years but most lenders will give you the option of a longer or shorter agreement. Spreading out the cost of a £600k mortgage over a longer term means lower monthly payments but paying more interest in installments overall.
The table below shows hope the cost of a £600,000 capital repayment mortgage with a 4% rate can vary depending on the term it has been taken out on.
Mortgage Amount | Term Length | Monthly Repayments | Overall Repayment |
£600k | 10 years | £6,075 | £728,965 |
£600k | 15 years | £4,438 | £798,863 |
£600k | 20 years | £3,636 | £872,612 |
£600k | 25 years | £3,167 | £950,106 |
£600k | 30 years | £2,864 | £1,031,217 |
£600k | 35 years | £2,657 | £1,115,792 |
£600k | 40 years | £2,508 | £1,203,663 |
Mortgage product and repayment type
Different mortgage products come with their own set of interest rates. Fixed rate mortgages, for example, are priced differently to tracker mortgages, so the cost of your £600,000 mortgage can vary dramatically depending on the product type you go for.
Your mortgage’s repayment type will also have a bearing on the monthly and overall repayments. The most popular type in the UK is capital repayment, which involves paying off a percentage of the debt plus interest each month, but other options are available.
The most common alternative is an interest-only mortgage, which involves paying only the interest on the loan each month and settling the debt at the end of the term.
£600k mortgage payments on interest-only
The table below shows how the cost of a £600,000 mortgage can vary across different rates when taken out on an interest-only basis over a term of 25 years.
Mortgage Amount | Interest Rate | Interest-only Payments (Monthly) | Overall Repayment |
£600k | 3.5% | £1,750 | £1,125,000 |
£600k | 4% | £2,000 | £1,200,000 |
£600k | 4.5% | £2,250 | £1,275,000 |
£600k | 5% | £2,500 | £1,350,000 |
£600k | 5.5% | £2,750 | £1,425,000 |
£600k | 6% | £3,000 | £1,500,000 |
How much a £600k buy-to-let mortgage will cost
The cost of a £600,000 buy-to-let mortgage would be calculated in exactly the same way as its residential equivalent, but the costs could be higher. This is because rates are typically higher for buy-to-let in general. Another key difference is that interest-only is the norm for this type of mortgage, while capital repayment is the dominant type for residential.
With this in mind, a typical repayment for a £600k buy-to-let mortgage would be £2,250 and £1,275,000 overall across a standard 25-year term.
This calculation used a 4.5% interest rate and an interest-only repayment type to reflect a typical buy-to-let mortgage agreement.
How to apply for a £600,000 mortgage
The right way to apply for a £600,000 mortgage is to speak to a mortgage broker before you approach any lenders and let them do all of the legwork for you.
By applying for your mortgage through a broker, you will gain access to a wider range of deals, including exclusive rates that aren’t available to borrowers who go direct.
Other benefits of applying for a £600k mortgage through a broker include:
Bespoke advice from start to finish
Access to the entire market
Help with all of your paperwork
No fee for your initial consultation
Ready to take advantage of a free, no-obligation chat with one of Echo Finance’s mortgage brokers to find out how much you could save? Get started here.
FAQs
A mortgage of £600,000 would be well above the national average and would be considered a ‘large’ loan by most mortgage lenders, some of whom have specific product categories with exclusive rates and specific criteria for borrowers taking out this amount.
Find your local adviser
- 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
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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.