£350,000 Mortgage: Monthly Repayments & Income Requirements

In this article, we’ll look at what the monthly repayments for a £350,000 mortgage could be, how much annual income you’ll need to borrow this amount and why using a mortgage broker can help secure the lending you need at the most competitive interest rates.

First, use our calculator below to get an idea of how much a mortgage of this amount could cost each month based on different terms and interest rates.

How much is a £350,000 mortgage per month?

As an example, based on a standard repayment mortgage with a typical interest rate currently (October 2023) of 5.5% and a term length of 25 years, you should expect to pay £2,149 per month.

However, the repayments on a £350,000 mortgage can vary depending on the following key factors:

Mortgage rate

A lower mortgage rate naturally means lower monthly repayments. So, a £350,000 mortgage would cost £2,097 a month at a mortgage rate of 5.25% or £2,255 a month at a rate of 6%*.

Having a large deposit will help you secure a lower rate, and having a good credit record can help, too. It’s important to compare rates from several lenders before applying for a mortgage, preferably with the help of a broker to give you access to the entire market.

(* = both payments calculated based on a term of 25 years) 

Mortgage type

When you pick a new mortgage, you’ll choose between a fixed rate and a variable rate or discounted variable rate. A variable rate will rise and fall with the Bank of England base rate, as will a discounted variable rate, though this will be a little lower.

Fixed-rate mortgages, as the name implies, mean your repayments remain fixed at the level you signed up at for a set period (you can typically choose between two, three, or five years).

Term length

Most mortgages last 25 years, but they can last anything from 10 to 40 years. Longer mortgages are usually only available to younger applicants, as most lenders prefer to know that you’ll have finished paying off the loan before you retire.

The longer your mortgage term, the lower your monthly repayments will be. So, a £350,000 mortgage would cost £2,149 per month at a rate of 5.5%, if it is repaid over 25 years. Repaid over 20 years, the same mortgage would cost £2,408 per month. Or, repaid over 35 years, it would cost £1,880 per month.

Example repayment calculations

Here are some example monthly repayments, using the same interest rate as in the example above (5.5%) and a variety of different loan terms for a £350,000 mortgage.

For the purpose of this table 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).

How much do you need to earn to get a £350,000 mortgage?

Lenders typically use 4 or 4.5 times a person’s annual salary as a benchmark for mortgage lending. On this basis, 4 times the annual salary for a £350,000 mortgage would be around £87,500 whilst 4.5 times would be £77,777.

But some lenders, depending on the circumstances, can offer an income multiple up to 5 or possibly 6 times, which would mean a salary of £70,000 or even £58,000 would suffice.

Occasionally, a lender might only offer 3 times annual salary but a broker would be able to advise on those more likely to offer a mortgage based on a higher multiple.

You can use a combination of two people’s salaries if you’re looking at a joint mortgage.

Example calculations

The below table breaks down what 3, 4, 5 and 6 times annual salary could mean for the size of mortgage available to you.

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:

How to get a £350,000 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:

• Finding the right lender offering the best rates. Your broker can save you a lot of time and, potentially, some money too by identifying the mortgage lenders currently offering the most competitive interest rates available across the market.
• Downloading and optimising your credit reports. Before you apply it’s important to check your credit history to make sure no bad credit issues exist and remove any inaccurate or outdated information that could hinder your chances of securing the mortgage you need.
• Preparing your paperwork. Your broker will be able to point out all the relevant documentary evidence required for your mortgage application – proof of income, address and ID, copies of bank statements etc. – so your mortgage application is as strong as it can be before you submit it.

How much deposit do you need for a £350k 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 £350,000 (rather than borrowing this amount) you’d need a deposit of between £17,500-£35,000 at least, and then your mortgage would actually be between £332,500-£315,000.

It’s not completely out of the question to secure a mortgage for £350,000 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.

Other costs to consider

When you’re looking for a mortgage, whatever the amount, there are a few more fees and costs to consider besides the monthly repayments.

For example:

• 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.
• 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.

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%.)

Get matched with the right mortgage broker

If you’re ready to start looking for a £350,000 mortgage, the next step is to find the right broker. Not all brokers have the same experience, and many specialise in a specific area of the market or the size of the loan. It will be quicker and easier to find the mortgage you need with help from a broker.

To find the right broker, try our free service which matches you to someone with relevant experience. You just need to provide a few details about yourself and the mortgage you’re looking for, and we’ll do the rest. Just give us a call on 0808 189 2301 or make an online enquiry.