£250,000 Mortgage: Monthly Repayments & Income Requirements
Wondering if a £250,000 mortgage is right for you? Discover typical monthly repayments, the income you’ll need, the deposit requirements, and how a mortgage advisor can guide you through the process.
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Over the last 10 years, we’ve helped over 600,000 customers get the right advice.
We guarantee to get your mortgage approved where others can’t – or we’ll give you £100*
Author: Pete Mugleston
CeMAP Mortgage Advisor, MD
Reviewed by: Jon Nixon
Former Director of Distribution
Quick Summary
The cost of borrowing £250k will differ depending on your Loan-to-Value (LTV), and which rates you qualify for, depending on your situation. Every lender is different with who they’ll accept and will assess things like your credit history, income, deposit source, the property etc. to determine if they’ll lend to you or not.
How much you’ll need to earn depends on the lenders’ generosity – some offer a limit of 4 to 4.5 times your salary, others can go over 5 to 6, and occasionally even 7 times your annual income.
Applicants’ combined income would usually need to be around £50,000 to borrow £250,000, with a handful of lenders offering slightly more generous terms to those with lower incomes.
In order to establish exactly how much you can borrow based on your situation, and the deals you’ll qualify for to see what it’ll cost, it’s best to speak to an expert.
In this article:
How much does a £250,000 mortgage cost per month?
At the time of writing (September 2025), the average monthly repayments on a £50,000 mortgage are £1,461. This is based on current interest rates being around 5%, a typical mortgage term of 25 years, and opting for a capital repayment mortgage. Based on this, you would repay £438,443 over the mortgage term.
Securing a mortgage with a longer term will result in smaller monthly repayments, but you’ll pay more in total over the term of the mortgage.
Talk to one of our advisors to get an idea of what your repayments might be. They can help you secure favourable terms and lower repayments than you might get if you try to secure a mortgage by yourself.
Mortgage Repayment Calculator
This calculator can tell you the monthly and overall cost of your mortgage, based on the loan amount, interest rate, and term length.
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The monthly repayments on a mortgage would be
The total amount paid at the end of your mortgage term would be
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What you can borrow is based on your salary. Most lenders will loan around 4 and 4.5 times your income. You’d need an annual income between £50,000 and £62,500 to be approved for a £250,000 mortgage. This is above the average UK annual salary, currently £37,430 (September 2025).
A higher income, a lower debt-to-income ratio, and a larger deposit can positively impact your borrowing capacity by increasing the income multiple that lenders are willing to offer. It isn’t easy to give exact income amounts because there are a few different factors that affect your application and how much you’ll be able to borrow:
- Your annual income
- The income multiple your lender offers
- Your general creditworthiness, as this will affect the number of lenders available to you
This is why getting a good mortgage broker on your side will make all the difference in how successful you’ll be in securing a £250k mortgage.
Most lenders review applications on a case-by-case basis and are most interested in assessing your affordability, based mainly on your income and outgoings. Some might lend you 4-4.5x times your salary, while others might go as high as 5x your income or 6x your income, which makes a huge difference in how much you can borrow.
However, it’s often only certain professions, such as doctors or lawyers, who can borrow this much. If you’re unsure whether you can borrow this much, getting a joint mortgage with a partner, for example, will allow you to use your combined earnings for this calculation.
Ultimately, how comfortably you can repay the loan is crucial. The less risky you appear to lenders, the higher your chances of securing the amount you need. The more eligible you are, the wider the range of lenders and mortgage deals.
Given the variance in these circumstances, it’s best to consult a broker who can indicate which lenders can offer you the best deal and whether you’d meet the lender’s affordability criteria.
Here, we look at salary versus income multiples set by individual lenders and determine how much you could borrow according to your circumstances.
| Income | 3x income | 4x income | 5x income | 6x income |
|---|---|---|---|---|
| £45,000 | £135,000 | £180,000 | £225,000 | £270,000 |
| £50,000 | £150,000 | £200,000 | £250,000 | £300,000 |
| £55,000 | £165,000 | £220,000 | £275,000 | £330,000 |
| £60,000 | £180,000 | £240,000 | £300,000 | £360,000 |
| £65,000 | £195,000 | £260,000 | £325,000 | £390,000 |
| £70,000 | £210,000 | £280,000 | £350,000 | £420,000 |
| £75,000 | £225,000 | £300,000 | £375,000 | £450,000 |
| £80,000 | £240,000 | £320,000 | £400,000 | £480,000 |
| £85,000 | £225,000 | £340,000 | £425,000 | £510,000 |
The above table is for comparative purposes only. For the most up-to-date information on affordability criteria, talk to the advisors we work with.
If you’d like to see how this works out for yourself based on your annual income, take a look at our mortgage affordability calculator below:
Mortgage Affordability Calculator
Use this calculator to determine how much you could potentially borrow for a mortgage, based on the typical salary multiples used by most UK lenders.
Your Results:
You could borrow up to
Most lenders would consider letting you borrow
This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders.
Some lenders would consider letting you borrow
This is based on 5 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender.
A minority of lenders would consider letting you borrow
This is based on 6 times your household income, a salary multiple you will struggle to get without a broker. Six-times salary mortgages are usually only available under very specific circumstances.
Get Started with an expert broker to find out exactly how much you could borrow.
Get StartedHow much deposit do you need for a £250,000 mortgage?
The current minimum deposit requirements imposed by lenders for a residential mortgage are between 5% and 10%—this is based on the property value, NOT the mortgage amount.
So, if you were buying a property with a value of £250,000 (rather than borrowing this amount), you’d need a deposit of at least £12,250-£25,000, and then your mortgage would be between £237,750-£225,000.
It’s not impossible to secure a mortgage for £250,000 with no deposit, but this is extremely rare.
For a more complex application, where a bad credit issue may reduce the pool of lenders available, you may need a higher deposit of at least 25%.
Most lenders ask for a minimum deposit of 20% for a buy-to-let mortgage. However, a mortgage broker with experience in this area should be able to identify some who will ask for less.
The higher your deposit, the more likely you are to qualify for the most competitive interest rates, as mortgage lenders reserve their best rates for mortgages with the lowest loan-to-value (LTV).
You can see how this works on our calculator below.
LTV Calculator
This calculator will tell you what your loan-to-value (LTV) ratio is, based on the property's value, your deposit/equity and the amount you're borrowing.
Your Results:
Your LTV is
This means that most mortgage providers will consider your deposit amount to be more than satisfactory, but speaking to a broker is still recommended to ensure you get the best deal.
This means you’re likely to meet the deposit requirements at most lenders, but since many reserve their best rates for those with higher deposits, speaking to a broker is recommended.
Many mainstream mortgage providers would consider this high and be reluctant to lend. Applying through a mortgage broker may be necessary to find a specialist low deposit mortgage lender.
LTVs have a direct impact on the rates available to you - speak to a mortgage broker and find out how to get the best deal based on your ratio.
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How to get a £250,000 mortgage
Once you’ve found a property you like and made some calculations, the next step in your mortgage application should be to find a mortgage broker with experience in arranging mortgages of this amount. This will boost your chances of getting approved at the best terms available.
You can speak to the right broker by simply enquiring online.
They’ll be able to help with:
- Deposit requirements: You’ll need to save a minimum deposit of 5% to 10% for a £250,000 mortgage. How much this figure will be depends on the value of the property, but a 10% deposit on a £250,000 house would be £25,000. A simple way to help you save money is to set up a savings account and put a percentage of your monthly wage, around 10 to 15%, into the account each month.
- Downloading and optimising your credit reports. It’s important to review your credit history before you apply for a mortgage, checking for any inaccuracies or outdated information that can be removed beforehand.
- Gathering all the necessary paperwork required for your application: Your broker will be able to guide you through the application process and all the documents you might need – proof of income, at least three months of bank statements, personal ID, proof of address, evidence of deposit, latest P60 form, etc.
- Working out how much you can borrow. Based on typical lender salary multiplier calculations, you might assume that £250,000 is the maximum you can borrow for a mortgage. However, this might not be the case. A mortgage broker can assess your circumstances and eligibility for better deals from lenders, potentially allowing you to borrow more at better interest rates.
- Finding the right lender and securing the best deal for you. Your mortgage broker will be able to identify those lenders offering the best interest rate terms available. This will save you time and, potentially, some money too.
- Navigating the mortgage process: Applying for a mortgage can be challenging, especially if it’s your first application. The right mortgage broker can assist you with any issues you may encounter along the way, safeguard your interests, and provide support if anything goes wrong.
Example monthly repayments for a £250,000 mortgage
The table below shows how much the interest rate and mortgage term can impact your repayments.
| Interest rate | 15 years | 20 years | 25 years | 30 years | 35 years |
|---|---|---|---|---|---|
| 1% | £1,496 | £1,150 | £942 | £804 | £706 |
| 2% | £1,609 | £1,265 | £1,060 | £924 | £828 |
| 3% | £1,726 | £1,386 | £1,186 | £1,054 | £962 |
| 4% | £1,849 | £1,515 | £1,320 | £1,194 | £1,107 |
| 5% | £1,977 | £1,650 | £1,461 | £1,342 | £1,262 |
| 6% | £2,110 | £1,791 | £1,611 | £1,499 | £1,425 |
| 7% | £2,247 | £1,938 | £1,767 | £1,663 | £1,597 |
| 8% | £2,389 | £2,091 | £1,930 | £1,834 | £1,776 |
For interest-only mortgages, the repayment remains as is regardless of the term. So, for example, the repayment shown for 6%, £750 per month, would be the same if you opted for a 15-year term or a 30-year term, as the capital owed doesn’t reduce and is paid off in full at the end using a separate repayment vehicle.
| Interest-only | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% |
|---|---|---|---|---|---|---|---|---|
| Any term | £208 | £417 | £625 | £833 | £1,042 | £1,250 | £1,458 | £1,667 |
For the purpose of these tables, we assume the interest rate stays the same for the full length of the mortgage. Interest rates can change if you remortgage to a different rate or move from a fixed or discounted deal to the lender’s standard variable rate (SVR).
With the Bank of England base rate currently at 4% (September 2025) and the average mortgage rate between 5% and 6%, the repayment figures under these columns would be the most realistic. However, as the base rate falls in the future, mortgage lenders should follow suit and reduce their rates, too.
Our advisors will help you decipher any stumbling blocks that might need to be considered regarding your application. Your advisor will also help you with this, but you should still be aware of whether they may have any impact down the line.
The longer the term, the lower your payments will be than for a shorter term, but with more interest to pay overall.
For example (using an interest rate of 5.5%), if you repay £250,000 over 10 years, your monthly repayments would be £2,713, whereas the same amount borrowed over 35 years would equate to repayments of just £1,343.
However, the total interest paid over 35 years would be much higher.
You can choose between a fixed rate and a tracker mortgage. Usually, a fixed rate will be higher, increasing your monthly repayment.
However, locking in a rate can allow you to better plan your finances, as opposed to a tracker mortgage, which could mean higher repayments if interest rates are raised.
If you’re a PAYE earner, you may get slightly better rates on the high street than self-employed applicants, as lenders consider your income more stable. If you’re self-employed, however, don’t worry.
Plenty of lenders specialise in self-employed mortgages and will offer you competitive rates.
The same applies here. Your circumstances will be assessed on their merit, but a broker will help you through any problems that former credit issues might have brought about.
Visit our bad credit mortgage section for more information on this subject.
Most lenders, especially on the high street, impose a maximum age limit on their mortgage products, meaning you’ll typically need to have finished repaying your mortgage by the age of 75-85.
The older you are, the shorter the term is likely to be. However, not all lenders apply maximum age limits, so if you’re an older borrower, you might be able to achieve the term you want with the right lender.
The same applies to these kinds of mortgages. Read, in more detail, about getting a mortgage on a second home or your prospects for getting a mortgage on a non-standard property.
Additional mortgage costs to consider
When arranging a mortgage, it’s important to remember that the monthly repayments will not be the only outgoing. Several other costs involved with a mortgage, plus the ongoing costs of home ownership, must be considered when planning your budget.
Below, we’ve listed some of the costs you’ll need to take into account:
- Solicitor/legal fees: This fee is typically between a few hundred and a few thousand pounds, depending on the property type and searches required
- Arrangement fees: This type of fee does not apply to all lenders or products, but it’s important to find out if it applies. It can be between 0.5% and 1% % of the total loan amount, so between £750 and £1,500 for a £250,000 mortgage.
- Broker fees: If you decide to use the services of a mortgage broker, their fees will also need to be considered. The amount will depend on the complexity of the application. Typically, a mortgage broker will ask for a flat fee, usually between £500 and £1,000, or a percentage of the amount borrowed, usually between 0.5% and 1%.
- Stamp duty: This is the tax levy on residential property purchases. The tax rates for stamp duty are tiered – the higher the purchase price, the higher the percentage you are charged.
- Land registry fee: This is essentially an admin fee you pay to the Land Registry for them to change the register entry to your name. It only applies to properties valued at £100,001 and above. The fee ranges from £45 to £145 depending on the property’s value.
- Valuation fee: Your lender will conduct a valuation to ensure you’re paying the correct amount for the property. Depending on the complexity, this typically costs between £250 and £1,500.
Insurance
You’ll likely need to account for additional insurance costs when taking out a mortgage.
These may include:
- Home insurance: Covers your property against damage or loss.
- Life insurance: Provides coverage for the mortgage in case of your death.
- Income protection: Helps if you’re unable to work due to illness or injury.
- Critical illness cover: Assists if you’re diagnosed with a serious medical condition
Why Use OnlineMortgageAdvisor?
No matter your mortgage situation, we’ve got you covered. Our mortgage experts support you from the start to the finish of your application. Our specialists can search the market to find the best deal on a £250,000 mortgage for you.
With access to hundreds of lenders, your dedicated mortgage adviser can find the best possible mortgage deal for your circumstances. We’re so confident in our service that we guarantee it – if you find a better mortgage deal elsewhere, we’ll give you £100*.
Call 0330 818 7026 or make an enquiry for a free consultation, and a member of our team will explain exactly how we can help
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Pete Mugleston
CeMAP Mortgage Advisor, MD
Pete, a CeMAP-qualified mortgage advisor and an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete successfully went the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained and his love of helping people reach their goals led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.
Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!
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