Repayments on a £180,000 Mortgage

If you’re looking to find out how much your monthly mortgage repayments could be on a £180,000 mortgage, you can use our calculator below to get an idea based on different term lengths and interest rates.

The article below outlines all the different factors that can determine your mortgage repayments and how working with an experienced mortgage broker can help you access the best possible terms.

How much does a £180,000 mortgage cost per month?

As an example, based on a standard repayment mortgage with a typical interest rate currently of 5.5% and a term length of 25 years, you should expect to pay £1,105 per month for this specific amount.

However, the monthly repayments on a mortgage – regardless of how much you want to borrow – can vary depending on the following key factors:

How to get a £180,000 mortgage

Your first step should be to find a mortgage broker with experience in arranging mortgages of this amount as this will boost your chances of getting approved at the best terms available.

Using our free broker-matching service you can speak straight away to the right broker by simply making an enquiry online. They’ll be able to help with:

• Working out how much you can borrow. You may have set your sights on a £180,000 mortgage, but do you definitely know you can borrow that amount? A mortgage broker, using typical lender salary multiplier calculations, will be able to quickly work this out for you. 
• Deposit requirements. Your broker will be able to outline what deposit most lenders would require for this size of mortgage. 
• 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 It’s important to review your credit history before you apply for a mortgage, checking for any inaccuracies or outdated information that can be removed beforehand. 
• 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 across the whole market. This will save you time and, potentially, some money too. 
• Gathering all the necessary paperwork required for your application. Your broker will be able to guide you through the application process and all the typical documents required – proof of income, recent bank statements, personal ID etc. 

Example calculations

To get an idea of how the interest rate and term length might alter repayments on a £180,000 mortgage, see the table below.

Should a borrower opt for an interest-only model, these are repayments estimates you could expect. For this method, the repayment won’t change regardless of what term you choose.

*For the purpose of these tables we are assuming the interest rate stays the same for the full length of the mortgage. Interest rates can change, if you decide to remortgage on to a different rate or move from either a fixed or discounted deal on to the lender’s standard variable rate (SVR).

With the Bank of England base rate currently at 5.25% and the average mortgage rates between 5%-6% the repayment figures under these columns would be the most realistic at present. However, as the base rate comes back down in the future then mortgage lenders should follow suit and reduce their rates too.

Other costs to factor in

It’s important to remember that the repayments on the mortgage won’t be the only cost you’ll incur. You’ll need to have money set aside for other mortgage fees including:

• The arrangement fee: Could be between £1,000 and £2,000, this is an amount paid to a lender, either as a lump sum or as a monthly payment. You can add it to your mortgage if you wish but be aware you’ll then pay interest on top of this amount.
• Booking fee: Costing somewhere around £100 to £200, this is paid to the lender as part of your application submission.
• Valuation fee: At approximately £300, this fee pays for the lender to assess the property you wish to buy and confirm its value. Some lenders may pay this for you.
• Survey cost: You can opt to do this with a third party or pay a lender to upgrade their valuation to do a survey. It can cost anywhere between £400 and £1,500.
• Stamp duty: This is a government levy payable based on the value of your property and whether it’s your primary or secondary residence.
• Conveyancing fee: This is the amount you pay to a solicitor to manage all of the purchasing paperwork. It can cost between £800 and £1,500 but in some cases a lender will cover the fee.
• Broker fee: The brokers we work with offer an initial free consultation and will lay out any charges beyond that. Typically this will either be a percentage of the mortgage (usually up to 1%) or a fixed-fee (between £500-£1,000 depending on the complexity of the application).
• Deposit: The ideal deposit is 25% of a property’s value, particularly if you want to qualify for the best rates, but some lenders will lower that requirement to 10% or even 5%.

Get matched with the right broker

A £180,000 mortgage shouldn’t be costing you any more than it has to and the only way to ensure you’ve got the cheapest mortgage on the market is to engage with an experienced broker who knows which lenders currently offer the best rates.

The brokers we work with have specific experience in obtaining the best possible mortgages deals and will be able to provide tailored advice with the aim of saving you money in the long-run.

Call 0808 189 2301 or make an enquiry today to be matched with a broker that’ll support you in securing the mortgage amount you need.