£200,000 Mortgage : Monthly Repayments & Income Requirements

If you want to borrow £200,000 to purchase a property, read on to see what your repayments could be and how much income you’ll need.

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Pete Mugleston Jon Nixon

Author: Pete Mugleston - Mortgage Advisor, MD

Reviewed By: Jon Nixon - Director of Distribution

Updated: November 30, 2023
September 30, 2022

If you’re looking at buying a property that requires a £200,000 mortgage you can use our calculators below to get an idea of what the monthly repayments could be, based on different interest rates and term lengths, and how much annual income you’ll need.

You can also read about how enlisting the help of a mortgage broker can help you secure the borrowing you need, at the most competitive interest rates.

How much does a £200,000 mortgage cost per month?

Due to the various factors at play (see the section below) there is no one set answer to this question.

But as a broad example, for a standard capital and repayment mortgage, over 25 years, using a typical interest rate available at the moment (October 2023) of 5.5% the repayments would be £1,228 per month.

For a more accurate answer, taking account of your preferred loan term, mortgage type and current interest rates that could apply, it’s a good idea to speak with a mortgage broker before approaching lenders directly.

Calculator Icon

Mortgage Repayment Calculator

Our mortgage repayment calculator can tell you how much your mortgage will cost you each month and overall. Enter the amount you’re borrowing, the term length and interest rate, and our calculator will do the rest.

Enter the amount you're borrowing
Enter the mortgage rate, 5.5% is a typical rate currently but this can vary
Enter the mortgage term, 25 years is the average but lenders can offer shorter and longer terms

Monthly Repayments:

Total amount paid at end of term:

Get started with an expert broker to find out how much they could help you save on your mortgage repayments.

Mortgage repayment table

Take a look at our repayment table below to see at a glance how the cost of a £200,000 mortgage can vary based on different rates and term lengths.

15 years 20 years 25 years 30 years
2% £1287 £1012 £848 £739
3% £1381 £1109 £948 £843
4% £1479 £1212 £1055 £954
5% £1582 £1320 £1170 £1074
6% £1,688 £1,433 £1,289 £1,199

For the purpose of this table we are assuming the interest rate stays the same for the entire length of the mortgage. Interest rates can change if you decide to remortgage 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% (October 2023) and the average mortgage rates between 5%-6%, the repayment figures for these rows in the table 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.

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How much do you need to earn to get a £200,000 mortgage?

Most lenders are willing to loan around 4 or 4.5 times your annual income. So, for a £200,000 mortgage, that means yearly earnings of between £44,000-£50,000 would be required. Given the average UK annual salary is currently £33,000 (October 2023) that may seem a bit high but if you’re getting a joint mortgage with someone your combined earnings can be used for this calculation.

Some lenders may also be willing to offer 5 times or possibly even 6 times annual salary. In these circumstances it’s best to consult with a broker who would be able to indicate which lenders can offer this and whether you’d likely qualify.

The table shows how that might impact what you can borrow.

Annual income 4x times 4.5x times 5x times 6x times
£35,000 £140,000 £157,500 £175,000 £210,000
£40,000 £160,000 £180,000 £200,000 £240,000
£45,000 £180,000 £202,500 £225,000 £270,000
£50,000 £200,000 £225,000 £250,000 £300,000
£55,000 £220,000 £247,500 £275,000 £330,000

The above table is for comparative purposes only. You should talk to your mortgage lender or broker for the most up-to-date information on affordability criteria.

If you’d like to test this for yourself, based on your own annual income, take a look at our mortgage affordability calculator below:

Calculator Icon

Mortgage Affordability Calculator

Our affordability calculator can tell you how much you can potentially borrow from a mortgage lender. Simply enter your total household income below and our calculator will do the rest.

Input full salaries for all applicants

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.

How to get a £200,000 mortgage

Once you’ve found a property and made some calculations, your next 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 £200,000 mortgage, but do you definitely know you can borrow that amount? A mortgage broker, using typical lender salary multiplier calculations, will be able to confirm this for you.
  • Deposit requirements. Your broker will be able to outline what deposit most lenders would require, based on the value of the property you’re looking to buy.
  • 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.

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How much deposit do you need for a £200,000 mortgage?

Currently, the minimum deposit requirements imposed by lenders for a residential mortgage are between 5%-10% – this is based on the property value NOT the mortgage amount.

So, if you were buying a property with a value of £200,000 (rather than borrowing this amount) you’d need a deposit of between £10,000-£20,000 at least, and then your mortgage would actually be between £190,000-£180,000.

It’s not completely out of the question to secure a mortgage for £200,000 with no deposit at all, but this is extremely rare at the moment.

For a more complex application, where there may be a bad credit issue or a mortgage involving a non-standard construction property, which will reduce the pool of lenders available, you may need a higher deposit of at least 25%.

For a buy-to-let mortgage most lenders ask for a minimum of 20%, although 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 likelihood of qualifying for the most competitive interest rates as mortgage lenders will reserve their best rates for mortgages with the lowest loan-to-value (LTV).

You can see how this works on our calculator below.

Calculator Icon

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.

Enter an amount in pound sterling
Property value minus your deposit/equity
Loan amount must be less than property value

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.

Factors that can affect your repayments

Repayments on mortgages can be impacted by the following factors, both directly and indirectly:

Interest rate

The higher the interest rate set on a mortgage, the higher the monthly cost to you because you are paying more interest on the outstanding balance. That’s why the interest rate is such an important factor to try to minimise so that the overall cost of your mortgage is cheaper.

The Bank of England base rate will also have an effect on what interest rate you can get for your mortgage as a lender’s rate will typically be on or around this figure.

Term length

If you think that the monthly repayments on your potential £200k mortgage may be too much, one way you can reduce them is to extend the term. However, it will mean that you end up paying more interest over the entire life of the mortgage than you would with a shorter term.

Traditionally mortgages are 25 years in length, but lenders may go up to 30, 35, or even 40 years in some circumstances. Using the table above, a 20-year term at 6% works out at £1,433 per month, but if you choose a 30-year term this reduces your payments to £1,199 per month.

Mortgage type

The type of mortgage you secure can impact how your interest is calculated. The most popular choices would be:

  • Fixed-rate mortgage: This type of mortgage has a set interest rate over a pre-agreed period of time. In practice, that means your monthly repayments stay the same over that timescale. At the end of the fixed term, you can negotiate a new fixed rate or you can revert to the standard variable rate.
  • Tracker mortgages: Unlike fixed-rate mortgages, a tracker rate will vary in line with the Bank of England base rate – which means your repayments can go up or down.

Interest-only vs. capital repayment

The mortgage repayment method will also have a bearing on how much your mortgage will cost each month. Most mortgages are capital and repayment, which means you would pay back some of the loan plus interest each month.

The alternative to this is interest-only. With this method, you only need to settle the interest each month and pay off the full loan balance at the end of the term using a pre-agreed repayment vehicle.

Interest-only mortgages come with lower monthly repayments but can cost more overall due to the loan amount remaining constant throughout the agreement.

For a £200,000 mortgage, with an interest rate of 5.5% and a term length of 25 years, your repayments would be £917 per month on an interest-only basis, while on a capital and repayment agreement they would be £1,289.

The calculator at the top of this page includes the option to convert the results into interest only after you have entered your mortgage details.


The larger your deposit when borrowing £200,000, the better your loan-to-value (LTV) ratio. When your LTV is lower, you will have more choices of providers offering their most competitive rates.

Your credit history

If you’ve had bad credit in the past, you may find that you have fewer providers offering you a rate which is affordable to you. Providers see you as a slightly higher risk so you may have to accept a higher rate than you had wanted. As a result, your monthly mortgage costs could go up.

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Other costs to factor in

It’s not just the monthly repayment that you need to budget for when applying for a mortgage.

The following costs are important to factor into your calculations:

Mortgage costs

These fees and charges usually come as standard with most mortgage lenders:

  • Arrangement fee: can be anywhere from £0-£2,000. As the name suggests this is a fee for arranging your mortgage and can, in certain cases, be added to your loan.
  • Valuation fee: usually between £250-£1,500 depending on the complexity of the valuation required. Some lenders will offer this fee for free as part of their overall package.
  • Early repayment charges (ERCs): most lenders will allow you to overpay by an additional 10% per annum. If you go beyond this then ERCs can apply and can be anywhere between 1%-5% of the mortgage balance. These are more commonplace when you break from a specific mortgage deal before the end of the term.

In addition to the above, you should also factor in other costs such as buildings/contents insurance, life insurance to cover the mortgage balance and broker fees (if you decide to use their services – typical fees for a broker would be either a flat fee of between £500-£1,000 or a percentage of the amount borrowed of up to 1%.)

Property purchase costs

You will also need to pay these fees when purchasing a property in addition to any mortgage costs you incur:

  • Solicitors fees: If you need a mortgage, you will need to instruct a solicitor to conduct all the conveyancing requirements.
  • Stamp duty: This is the tax levy on residential property purchases. The tax rates are tiered – the higher the purchase price, the higher the percentage you are charged.

There will be a number of fees to pay upfront too, which you can find more information on in our article about mortgage fees you should expect.

Get matched with the right broker

Different lenders have varying approaches to how they evaluate an application. When it comes to securing a £200k mortgage, you’ll want to approach the lender who can offer you the full amount with the lowest rate and the best overall terms.

Talking with a broker can maximise your chances of finding that lender – and fast. We offer a no-obligation broker matching service which is free to use. We can put you in touch with an advisor who can help save you time and money – not to mention stress by guiding you through the application process.

Call us today on 0808 189 2301 or make an enquiry so we can put you in touch with the right expert for you.

Maximise your chances of approval and secure the best deal with a specialist broker

Get Started Phone Icon 0808 189 2301

About the author

Pete, 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 found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with 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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Pete Mugleston

Mortgage Advisor, MD

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