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Are You Looking For a £40,000 Mortgage?

Get expert advice from a specialist or click through to check costs, affordability and see if you'll qualify for your £40,000 mortgage

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: May 3, 2022

£40,000 is a small amount for a mortgage loan, but it’s always a good idea to do your research and seek professional advice if you’re applying for a mortgage of any size.

In this guide, you can find out what your repayments will look like, whether £40K is the maximum you can borrow and how a broker can help you get approved.

How much are the repayments on a £40K mortgage?

Understanding the different rates of interest and lengths of repayment are all crucial at the time of taking out your £40k mortgage. This is due to the fact that these can all have a significant impact on the costs you will be required to pay. You would not be expected to take on such a loan without knowing how it will affect you for the future.

Use our calculator here for an accurate measure of what a mortgage of this amount will cost you per month.

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
2.5% is an average figure but the rate you get may vary
25 years is average, but most lenders offer longer and shorter terms

Monthly Repayments:

Interest Only:

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.

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Example calculations

For a mortgage of £40,000, there can be a number of different routes to take, mostly dependent on the costs involved. Therefore we have provided repayment tables below, each displaying some of the vital data necessary, including lengths of repayment, interest rates and a number of mortgage values. It will then become clear to you, which value is most appropriate.

Each table gives the future costs at interest rates of 1% to 5% and repayment terms of 15 to 30 years. In addition, to improve the scope of our research we have included mortgage values from £40, 000 up to £50, 000.

The tables are shown below.

1% Repayment Rate

You may be able to secure a small mortgage on a low interest rate of between 1-2%, however, these rates are typically reserved for introductory offers before moving to the lender’s standard variable rate (SVR).

1% 15yr 20yr 25yr 30yr
40000 £239.40 £183.96 £150.75 £128.66
41000 £245.38 £188.56 £154.52 £131.87
42000 £251.37 £193.16 £158.29 £135.09
43000 £257.35 £197.75 £162.06 £138.30
44000 £263.34 £202.35 £165.82 £141.52
45000 £269.32 £206.95 £169.59 £144.74
46000 £275.31 £211.55 £173.36 £147.95
47000 £281.29 £216.15 £177.13 £151.17
48000 £287.28 £220.75 £180.90 £154.39
49000 £293.26 £225.35 £184.67 £157.60
50000 £299.25 £229.95 £188.44 £160.82

2% Repayment Rate

The table below looks at loans between £40k-£50k over various terms at a 2% interest rate.

1% 15yr 20yr 25yr 30yr
40000 £257.40 £202.35 £169.54 £147.85
41000 £263.84 £207.41 £173.78 £151.54
42000 £270.27 £212.47 £178.02 £155.24
43000 £276.71 £217.53 £182.26 £158.94
44000 £283.14 £222.59 £186.50 £162.63
45000 £289.58 £227.65 £190.73 £166.33
46000 £296.01 £232.71 £194.97 £170.02
47000 £302.45 £237.77 £199.21 £173.72
48000 £308.88 £242.82 £203.45 £177.42
49000 £315.32 £247.88 £207.69 £181.11
50000 £321.75 £252.94 £211.93 £184.81

3% Repayment Rate

A higher number of lenders may consider a 3% repayment rate on a £40,000 mortgage, depending on your circumstances.

1% 15yr 20yr 25yr 30yr
40000 £276.23 £221.84 £189.68 £168.64
41000 £283.14 £227.39 £194.43 £172.86
42000 £290.04 £232.93 £199.17 £177.07
43000 £296.95v £238.48 £203.91 £181.29
44000 £303.86 £244.02 £208.65 £185.51
45000 £310.76 £249.57 £213.40 £189.72
46000 £317.67 £255.11 £218.14 £193.94
47000 £324.57 £260.66 £222.88 £198.15
48000 £331.48 £266.21 £227.62 £202.37
49000 £338.39 £271.75 £232.36 £206.59
50000 £345.29 £277.30 £237.11 £210.80

4% Repayment Rate

Many lenders offer mortgages with repayment rates between 3-4.5%.

1% 15yr 20yr 25yr 30yr
40000 £295.88 £242.39 £211.13 £190.97
41000 £303.27 £248.45 £216.41 £195.74
42000 £310.67 £254.51 £221.69 £200.51
43000 £318.07 £260.57 £226.97 £205.29
44000 £325.46 £266.63 £232.25 £210.06
45000 £210.06 £272.69 £237.53 £214.84
46000 £340.26 £278.75 £242.80 £219.61
47000 £347.65 £284.81 £248.08 £224.39
48000 £355.05 £290.87 £253.36 £229.16
49000 £362.45 £296.93 £258.64 £233.93
50000 £369.84 £302.99 £263.92 £238.71

5% Repayment Rate

Depending on your circumstances, mortgage lenders may offer you a loan with a 5% repayment rate. See the table below to find out how much you would pay per month.

1% 15yr 20yr 25yr 30yr
40000 £316.32 £263.98 £233.84 £214.73
41000 £324.23 £270.58 £239.68 £220.10
42000 £332.13 £277.18 £245.53 £225.47
43000 £340.04 £283.78 £251.37 £230.83
44000 £347.95 £290.38 £257.22 £236.20
45000 £355.86 £296.98 £263.07 £241.57
46000 £363.77 £303.58 £268.91 £246.94
47000 £371.67 £310.18 £274.76 £252.31
48000 £379.58 £316.78 £280.60 £257.67
49000 £387.49 £323.38 £323.38 £263.04
50000 £395.40 £329.98 £292.30 £268.41

How many times your salary can you borrow?

It’s possible to borrow between 4-4.5 times your salary, though this varies from lender-to-lender. Some mortgage lenders use income multiples to work out the maximum amount they could lend you, while others prefer to make an assessment based on your application.

Your overall affordability could be affected by other factors, including the amount of deposit you have, your credit rating, your outgoings, age and employment type. If you’re only after a smaller mortgage or loan, however, income multiples may not be a factor.

Use our mortgage affordability calculator below to find out what your maximum borrowing is likely to be…

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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.

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So what is the ‘best deal’ for you?

Now that we have a rough idea of how much you are wanting to borrow and how much it will ultimately cost you, we can then go on to make some of the final decisions. Many firms are able to offer mortgages of £40k. However, each one has a different rate of repayment and interest rates can fluctuate from provider to provider.

To make sure we find you the right plan, we must look into the packages firms can provide. This can be a long and tedious process, we have taken the stress off of you and designed a live online search application. This enables you to input the specific criteria you are after to give you the best deals on the market.

All that is required of you is to enter the mortgage value you are after and some other basic information such as the deposit on the mortgage, the repayment method and how long you intend to have repaid by. Once all this has been filled out you are one step closer to taking out your £40 000 loan.

One click of the ‘search now’ button will give you all the results you need. From there on its just a case of finding which plan is best for you and clicking ‘enquire’.

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 OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the 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 information 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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