Repayments on a £200,000 Mortgage

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.

Home Mortgage Repayments Repayments On A £200,000 Mortgage
Pete Mugleston

Author: Pete Mugleston

Mortgage Advisor, MD

Jon Nixon

Reviewer: Jon Nixon

Director of Distribution

Updated: May 7, 2024

How we reviewed this article:

Our experts continuously monitor changes in the financial space and work closely with qualified mortgage advisors for factual verification.

May 7, 2024

Repayments on a £200,000 mortgage will vary depending on your mortgage type. Your mortgage repayments will be determined by the length of your term, interest rate, and the type of mortgage you get.

A longer term will mean smaller monthly repayments but will result in you paying more in the long term. The higher the interest rate, the more you’ll pay and if you get an interest-only mortgage, for example, you’ll only repay the interest on the money you’ve borrowed.

In this article, we’ll look at the monthly repayments you can expect for a £200,000 mortgage, the annual income, and the deposit amount you’ll need to apply for this mortgage. As well as how using a mortgage broker can help you secure the lending you need at the most competitive interest rates.

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

At the time of writing (May 2024) the average monthly repayments on a £200,000 mortgage are £1,169. 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 £350,754 over the mortgage term.

However, if you secure a mortgage with a longer term, this will result in smaller monthly repayments but you’ll pay more in total over the term of the mortgage.

Speak to one of the advisors we work with for a representative idea of what you might repay. They can also help increase your chances of getting approved for a £200,000 mortgage.

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.

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

Your Results:

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

The amount you can borrow is based on your salary. Most lenders will loan around 4 or 4.5 times your annual income. To be approved for a £200,000 mortgage, you’d need an annual income of around £44,000-£50,000. This is above the average UK annual salary, currently £34,900 (May 2024).

If you earn less than the above figures you can consider getting a joint mortgage with someone. Your combined earnings can be used for this calculation bringing you above the required income limits.

Some lenders may also be willing to offer 5 times or possibly even 6 times annual salary. However, the latter is often reserved for certain professions, such as doctor or lawyer, as they have a higher and more reliable income.

In these circumstances, it’s best to consult with a broker who can indicate which lenders can offer this and whether you’d likely qualify.

This table shows how your income and the provider’s income multiples combine to show your maximum borrowing capacity:

Annual income 4x income 4.5x income 5x income 5.5x income 6x income
£35,000 £140,000 £157,500 £175,000 £192,500 £210,000
£40,000 £160,000 £180,000 £200,000 £220,000 £240,000
£45,000 £180,000 £202,500 £225,000 £247,500 £270,000
£50,000 £200,000 £225,000 £250,000 £275,000 £300,000
£55,000 £220,000 £247,500 £275,000 £302,500 £330,000

The above table is for comparative purposes only. 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 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.

Input full salaries for all applicants

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.

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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.

If you were buying a property with a value of £200,000 (rather than borrowing this amount) you’d need a minimum deposit of between £10,000-£20,000, and your mortgage would 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.

You may need a higher deposit of 25% if you have issues with bad credit or are looking for a mortgage involving a non-standard construction property. It’s important to note, factors such as these two examples will reduce the pool of lenders available.

Most lenders ask for a minimum of 20% for a buy-to-let mortgage, although a mortgage broker with experience in this area should be able to identify some who will ask for less.

If you have a higher deposit, you will have lower monthly repayments, but you’re also more likely to qualify for the most competitive rates. This is because you will have a lower loan-to-value (LTV) ratio, which wouldn’t be the case with a lower deposit.

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.

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

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 £200,000 mortgage

Once you’ve found a property 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 your mortgage approved at the best terms available.

Using our free broker-matching service you can speak straight away 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 £200,000 mortgage. How much this figure will be depends on the value of the property, but a 10% deposit on a £200,000 house would be £20,000. A simple way to help you save money for a deposit 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 typical documents required – 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. You may have set your sights on a £200,000 mortgage, but do you know you can borrow that amount? A mortgage broker, using typical lender salary multiplier calculations, will be able to confirm this for you.
  • 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.
  • 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 £200,000 mortgage

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.

Interest rate 15 years 20 years 25 years 30 years 35 years
1% £1,197 £920 £754 £643 £565
2% £1287 £1012 £848 £739 £663
3% £1381 £1109 £948 £843 £770
4% £1479 £1212 £1055 £954 £886
5% £1582 £1320 £1170 £1074 £1,009
6% £1,688 £1,433 £1,289 £1,199 £1,140
7% £1,798 £1,551 £1,414 £1,331 £1,278 £1,167
8% £1,911 £1,673 £1,544 £1,468 £1,421 £1,333

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 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% (May 2024) 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, mortgage lenders should follow suit and reduce their rates too.

Factors that affect monthly 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 because you pay 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 affect what interest rate you can get for your mortgage as a lender’s rate will typically be on or around this figure.

Term length

One way to reduce the monthly repayments on your potential £200k mortgage 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. In practice, your monthly repayments stay the same over that timescale. At the end of the fixed term, you can negotiate a new fixed rate or 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 table below shows what your monthly repayments would be on an interest-only mortgage with varying rates:

Term 1% 2% 3% 4% 5% 6%
Any term £167 £333 £500 £667 £833 £1,000


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 that 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.

Other costs to consider

It’s not just the monthly repayment 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 a valuation 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, ERCs can apply and can be 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 several fees to pay upfront too, which you can find more information on in our article about mortgage fees you should expect.

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Why use Online Mortgage Advisor?

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 at 0808 189 2301 or make an enquiry so we can put you in touch with the right expert.

Get an expert to confirm the lowest repayments available to you today

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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!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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