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£200,000 Mortgages

Want to know if you can get a £200,000 mortgage? Find out here.

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By Pete Mugleston   Mortgage Advisor

Last updated: 27th March 2019 *

In this article, you’ll learn all about £200,000 mortgages. You’ll get an idea of what £200k mortgage monthly payments might cost you, the kind of deposit you may need - and the advisors we work with can track down the best rates out there.

We’re always getting enquiries from people interested in £200k mortgages. Since the expert advisors we work with cover the whole of the market, we’re able to help people, just like you, find the perfect deal for their circumstances.

Here’s what you’ll learn in this article

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How much will a mortgage of 200k cost a month?

Customers often ask us ‘what are the monthly repayments on a 200k mortgage?’. The answer, of course, is not the same for everybody, which is why bespoke advice is crucial. For a start, every lender is different, along with every borrower’s credit history  and circumstances - many factors that can affect your monthly repayments.

Two main factors will have a bearing on how much the repayments cost: the term of the mortgage and the interest rate that the lender gives you.

This table shows (approximately) how your monthly repayments can vary, based on the term and the interest rate.

£200,000 Mortgage Repayments
Interest Rate 1% 2% 3% 4% 5%
5 years £3,418 £3506 £3594 £3683 £3775
10 years £1752 £1840 £1931 £2025 £2122
15 years £1197 £1287 £1381 £1479 £1582
20 years £919 £1012 £1109 £1212 £1320
25 years £753 £848 £948 £1055 £1170
30 years £643 £739 £843 £954 £1074
35 years £564 £663 £770 £885 £1010
Interest Only £166 £334 £500 £666 £834

The above is for comparative purposes only and you should check with your lender or broker for the most up-to-date information and rates.

By now, you’re probably wondering what interest rate you might be eligible for. This comes down, mainly, to how large your deposit is, and your risk profile (largely based on your credit history).

If you want a clearer idea of what rate you might get on a £200,000 mortgage monthly payment, get in touch and the expert advisors we work with will crunch the numbers for you. This will help you get a better understanding of the mortgage amount you’re likely to qualify for, plus these brokers can connect you with the lenders able to offer you the best rate for your unique circumstances.

How much income do I need to qualify for a £200k mortgage?

As we’ve already touched on, it can come down to more than just the numbers on your wage slip, but to give you a rough idea, some lenders cap the amount you can borrow based on x4.5 your salary, others go up to x5 and a minority to x6, under the right circumstances.

So, to give a ballpark figure, assuming two applicants, each would need a combined salary of between £33,000 and £50,000, although this does not include other varies lenders take into account when assessing affordability, such as how much deposit you have and your credit rating. You can read more about affordability assessments here.

How does the term of the mortgage affect the repayments and the total amount?

We’re often asked ‘how long does it take to pay off a £200,000 mortgage?’. This comes down to how much you can really afford to pay each month.

The table below (based on an interest rate of 3%) shows how reducing the term of your mortgage can affect your monthly repayments and the total amount you’ll pay over the term of the loan.

Cost of £200,000 Mortgage
Monthly Repayment Total Repaid Interest Paid
200k mortgage over 30 years £843 £303,495 £103,495
200k mortgage over 25 years £948 £284,478 £84,478
200k Mortgage over 20 years £1106 £266,169 £66,169
200k Mortgage over 15 years £1381 £248,583 £48,853
200k mortgage over 10 years £1931 £231729 £31729
200k mortgage over 5 years £3594 £215616 £15616

The above example is for demonstrative purposes only and you should consult your broker or lender for the most up-to-date information and rates. 

As you can see, the length of the mortgage has a huge effect on how much you ultimately pay. As an example, a £200 000 mortgage over 25 years could cost you thousands more than a mortgage for 20 years - but you may find the cheaper monthly payments worth the extra cost.

Talk to one of the expert mortgage advisers we work with. They can give you the right advice about which term might be best suited to your circumstances

What’s the income needed for 200k mortgage?

People often ask us ‘how much do I need to earn to get a mortgage of £200, 000?’. As you may expect, this depends on many factors - like how you make your money, how much of a deposit you have, and your prior credit history.

There is no one answer for everyone.

Find out more about the salary requirement for a £200,000 mortgage here.

Does bad credit affect how much deposit I need for a £200000 mortgage?

Unfortunately, yes - but it doesn’t have to be a dealbreaker.

A history of bad credit means that lenders will look upon you as a higher risk. The worse your credit history, the greater the risk - which often means a larger deposit and less favourable rates.

Of course, every lender is different, and will treat each issue differently. As a result, each will offer different rates and ask for different deposit sizes.

Some issues are generally seen as lower risk by most lenders - for example, if you have a low credit score and a few late payments on your record, some lenders may be happy to offer you a higher loan to value ratio (LTV) and better rate.

But if you have something more serious, such as a recent bankruptcy or repossession, many of them will be much more cautious - requesting a higher deposit or higher rate of interest on your loan.

Risk Profile LTV Band Property Value Deposit Required
Low 95% £200,000 £10,000
90% £200,000 £20,000
85% £200,000 £30,000
80% £200,000 £40,000
Moderate 75% £200,000 £50,000
70% £200,000 £60,000
65% £200,000 £70,000
60% £200,000 £80,000
55% £200,000 £90,000
High 50% £200,000 £100,000

The above is for demonstrative purposes only and you should consult your broker or lender for the most up-to-date information and rates.

As we said, bad credit doesn’t have to be a deal breaker. If you’re unsure about your credit history, just speak to one of the advisors that we work with. If you’re looking for a mortgage, despite bad credit - they’re the experts in finding you one.. …

You can read more about bad credit mortgages here.

Can I get a £200,000 buy to let mortgage?

It’s very likely. It’s worth bearing in mind that the rules for BTL mortgages are a little different, usually stricter.

For a start, lenders will very often expect a higher deposit 25% is not uncommon, though some may accept 15%, provided you fit other criteria.

Minimum income requirements are another common factor - some lender insisting that you make at least £25k a year.

That said, some lenders will look at rental income forecasts instead, insisting that your projected rental payments cover 125%-130% of the £200,000 mortgage’s monthly payments.

Another hurdle comes from the fact that many of them won’t offer a BTL mortgage to a first time buyer (you need to own your home first), though some of the more specialist providers may consider this - provided you fit a few other criteria.

Most folks opt to take their buy to let mortgage on an interest-only basis. The section below will help you get an idea of the monthly payments on a £200k, interest-only mortgage.

Can I get an interest only £200k mortgage?

Yes, there’s a fair amount of choice on the market, but lenders will want to see a viable ‘repayment strategy’ before stumping up the cash.

A repayment strategy is essentially a written plan that shows how you’ll be able to pay the full balance of the mortgage at the end of the term.

In an interest-only mortgage, your monthly payments only meet the interest on the loan, the capital is due at the end of the term in one large, lump sum.

The criteria for an interest-only residential mortgage are little different. You’ll probably be asked for a larger deposit - most lenders will only offer 75% loan to value (LTV), though a smaller number will offer 80%, and a handful will go up to 85% if circumstances are right.

How much is the monthly interest on a £200,000 mortgage?

Below you can see how a repayment mortgage compares with an interest-only mortgage, based on monthly payments and a term of 25 years.

The lower column illustrates how much monthly interest you would pay on a £200k mortgage at various interest rates.

Interest Rate 1% 2% 3% 4% 5%
Repayment Mortgage £753 £848 £948 £1055 £1170
Interest Only £166 £334 £500 £666 £834

For more accurate figures, or if you want to see if a repayment mortgage might be right for you, drop us a line. We’ll connect you with an expert who can help you see if this is the best fit for you.

What else could affect a £200k mortgage application?

There are a number of other factors that lenders will look at when considering you for a mortgage

Your age

Upper age limits are not uncommon. Some lenders won’t lend to anyone over 75. Others set the cap at 85. Some don’t mind how old you are, provided you can provide concrete evidence that you’ll be able to make the payments during retirement.

Your expenses

Under the government’s recent MMR (Mortgage Market Review) - your expenses are now scrutinised in as much detail as your income. Which means that a lot of expensive outgoings could decrease your chances of a successful application (even things like gym memberships can be a factor).

The type of property you want to buy:

Some lenders are wary of what are referred to properties of ‘non-standard’ construction. Examples include houses with thatched roofs or timber frames. Some will refuse outright to lend on such an unusual house, others will request stricter terms - higher deposits and interest rates, for example. You can get more information about non-standard construction mortgages here.

Your income source(s):

Lenders are most happy with people who work full time, on a large, PAYE salaries. They tend to consider everything else ‘non-standard’ and, as such offer less favourable rates.

That said, there are specialist lenders out there who work with the self-employed, or those who make a sizeable portion of their income from variables such as bonuses and benefits. You can learn more about income types and mortgages here.

Your credit rating:

As we mentioned earlier, your credit is always going to be a factor. The better your rating - the better the deals that are offered to you. As a general rule, the severity of the issue and the amount of time that has elapsed since it occurred are the biggest factors.

So, for example, a missed phone bill payment from 5 years ago will have less of an effect than a bankruptcy that happened last year.

£200,000 mortgages for the self-employed

Self-employment is certainly not a barrier to home ownership, but you may need to look for a specialist lender to get the best rates on a £200,000 mortgage. More conventional lenders often look at the self-employed as ‘non-standard’, and thus higher risk.

You can read more about self-employed mortgages here.

Can I get a 200k secured loan?

Secured loans are a practical option for borrowers who want to raise a large sum of money without remortgaging.

Getting a £200k loan secured against your property may, in some instances, turn out to be easier than getting a conventional mortgage. This is because lenders see such loans as lower risk, seeing as they are secured against your property.

Rates for secured loans can be competitive with conventional mortgages, they’re often quicker to arrange and, unlike conventional mortgages, don’t incur any fees for early settlement. Factors such as adverse credit and non-standard income are less of an issue, and some lenders are happy to let you borrow even up to x10 your income on these products.

Where can I find a £200k mortgage calculator?

There’s a huge number of variables when it comes to getting a mortgage - your credit history, income sources, deposit size and monthly outgoing being just a few of them. As such, calculators can only give you the most general idea of what is available.

Without a doubt - getting the expert advice is the best way to find out if you’re eligible for a £200k mortgage, or what a £200k mortgage might cost you.

Speak to one of the brokers we work with to get the best advice for your unique circumstances - they can help clear up the confusion and connect you with the right lender for you.

Speak to an expert

If you’re still wondering ‘can I afford a 200k mortgage’ or simply want some friendly, no-obligation advice, contact call Online Mortgage Advisor today on 0800 304 7880 or make an enquiry here.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances.  - We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 27th March 2019
OnlineMortgageAdvisor 2019 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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