Repayments on a £400,000 Mortgage

Calculate your monthly repayments on a £400,000 mortgage and find out how to secure the best deal

Home Mortgage Repayments Repayments On A £400,000 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 £400,000 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 a higher total amount. The higher the interest rate, the more you’ll pay and if you get an interest-only mortgage, for example, you’ll only cover the interest charges, not the principal amount borrowed.

In this article, you can find out how much the monthly repayments could be on a £400,000 mortgage, the annual income, and the deposit amount you’ll need to apply for this mortgage. As well as the factors that might affect how much you pay and why it makes sense to speak to a mortgage broker before committing to any interest-rate deal.

How much does a £400,000 mortgage cost per month?

At the time of writing (May 2024) the average monthly repayments on a £400,000 mortgage are £2,338. 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 £701,508 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.

Talking to one of the advisors we work with is a good idea to get a representative idea of what you might repay. They can help you secure favourable terms and lower repayments than you might get if you try to secure a mortgage by yourself.

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.

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6% is an average figure but the rate you get may vary
25 years is average, but most lenders offer longer and shorter terms

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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 £400,000 mortgage?

What you can borrow is based on your salary. Most lenders will loan 4 or 4.5 times your annual income. You’ll need an annual income of £88,888 to £100,000 to be approved for a £400,000 mortgage. This is significantly above the average UK annual salary, currently £34,900 (May 2024).

You’re unlikely to be approved if you don’t earn the figures mentioned above. However, you can get a joint mortgage with your partner for example. You can use your combined earnings for the calculations to increase your chances of getting approved for a £400k mortgage.

Some lenders may also be willing to offer 5 times or possibly even 6 times annual salary. In this circumstance, you’d need to earn £65,000 to be eligible for a £400,000 mortgage. But this is often only available to certain professions, such as a doctor or lawyer, with high or stable income.

In these circumstances, it’s best to consult with a broker who can indicate which lenders can offer this and whether you’d meet the lender’s affordability criteria.

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

Income 4x income 4.5x income 5x income 5.5x income 6x income
£85,000 £340,000 £382,500 £425,000 £467,500 £510,000
£90,000 £360,000 £405,000 £450,000 £495,000 £540,000
£95,000 £380,000 £427,500 £475,000 £522,500 £570,000
£100,000 £400,000 £450,000 £500,000 £550,000 £600,000
£105,000 £420,000 £472,500 £525,000 £577,500 £630,000

The above table is for comparative purposes only. Talk to one of the advisors we work with for the most up-to-date information on affordability criteria.

If you’d like to see how this works out 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 £400,000 mortgage?

Most lender’s minimum deposit requirements are between 5% to 10% of the property value. For a property valued at £400,000, you’d need a minimum deposit of £20,000 to £40,000.

You’re likely to need a larger deposit, around 25% if you have bad credit issues. You’ll also need a larger deposit if you want to get a mortgage for a non-standard construction property, such as a thatched country cottage.

For buy-to-let mortgages, most lenders typically require a minimum deposit of 20%. However, an experienced mortgage broker in this field may be able to identify lenders who ask for less.

The bigger your deposit, the more likely you are to be accepted for a mortgage. A larger deposit will also reduce your monthly repayments, give you a better loan-to-value ratio and offer you access to more competitive interest rates. A lower deposit will mean higher monthly repayments.

Use our calculator below to see how this plays out.

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 £400,000 mortgage

Once you’ve found a property and made some calculations, your next step should be to find an experienced mortgage broker as this will boost your chances of getting approved at the best terms available.

Using our free broker-matching service you can speak to the right broker straightaway 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 £400,000 mortgage. How much this figure will be depends on the value of the property, but a 10% deposit on a £400,000 house would be £40,000. A simple way to help you save money is to set up a savings account and put a percentage of your monthly wage, around 10% to 15%, into the account each month.
  • Reviewing and Optimising Your Credit Reports: Before applying for a mortgage, it’s crucial to review your credit history. This involves 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.
  • Determining Your Borrowing Capacity: You might assume that £400,000 is the maximum you can borrow for a mortgage based on typical lender salary multiplier calculations. However, this might not be the case. A mortgage broker can assess your circumstances and eligibility for better deals from lenders, potentially allowing you to borrow more at better interest rates.
  • Identifying the Right Lender and Securing the Best Deal: Your mortgage broker can identify lenders offering the best interest rate terms across the entire market. This can save you time and potentially some money.
  • 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 £400,000 mortgage

The table below shows how monthly payments on a £400,000 mortgage can change depending on the rate and term.

Interest rate 15 years 20 years 25 years 30 years 35 years
1% £2,394 £1,840 £1,507 £1,287 £1,129
2% £2,574 £2,024 £1,695 £1,478 £1,325
3% £2,762 £2,218 £1,897 £1,686 £1,539
4% £2,959 £2,424 £2,111 £1,910 £1,771
5% £3,163 £2,640 £2,338 £2,147 £2,019
6% £3,375 £2,866 £2,577 £2,398 £2,281
7% £3,595 £3,101 £2,827 £2,661 £2,555
8% £3,823 £3,346 £3,087 £2,935 £2,841

Repayments for interest-only mortgages remain the same regardless of the term. So, for example, the repayment shown for 6% – £2,000 per month – would be the same if you opted for a 15-year term or a 30-year term as the capital owed doesn’t reduce and is paid off in full at the end using a separate repayment vehicle.

Interest rate 1% 2% 3% 4% 5% 6% 7% 8%
Any term £333 £667 £1,000 £1,333 £1,667 £2,000 £2,333 £2,667

For the purpose of these tables, we assume 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 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% to 6% the repayment figures along these rows in the table above would be the most realistic at present. This can change as and when the base rate is changed. 

Factors that affect monthly repayments

Each of the following factors outlined below will have a direct impact on your mortgage repayments.

Interest rate

Securing the best (lowest) interest rate terms available will mean your repayments are as low as they can be, based on the market conditions when you apply.

The strength of your application and deposit size will determine how many mortgage lenders are willing to consider you for a mortgage and, as a result, this means you’ll have access to the best available rates.

Other factors, such as your credit history, age and employment status can also impact the interest rate you qualify for as this could result in a smaller pool of lenders willing to consider you for a mortgage.

Mortgage term

Not all mortgages are taken out over 25 years. If you can prove affordability isn’t a problem, you can often lower your term, so your monthly payments are higher, but you save on interest over the term of your loan. Some lenders may allow overpayments, which will help you pay off your mortgage quicker and reduce the total interest you pay.

If this is something you would consider, a mortgage broker can advise on the options available to you.

Likewise, if affordability is tight but you need to borrow £400,000 for the home you want, it’s possible to extend your term to a maximum of 40 years to make your monthly payments manageable. However, not all lenders offer 40-year terms and you’re more likely to be approved for one the younger you are.

If you don’t match the eligibility criteria for high street lenders, you may still be able to get a good rate by approaching a specialist lender that is more sympathetic to your situation. This can include applicants looking for bad credit mortgages or mortgages for self-employed people. The best way to find these lenders is by using the services of an experienced mortgage broker.

Mortgage Type

How you choose to pay back your mortgage is also a factor that can affect your monthly repayments.

Broadly speaking there are three different types available:

  • Fixed-rate mortgages: These types of mortgages make budgeting easier as you tie in a fixed rate for a fixed term so you know exactly what your monthly payments will be for several years (usually between two and five).
  • Variable rate mortgages: As the name suggests, these types of mortgages have rates that can vary rather than remain fixed. As such they can be slightly more risky than a fixed-rate mortgage but can result in lower monthly repayments during the term. Types of variable rates include tracker mortgages (see below), discounted rate mortgages and standard variable rate (SVR) mortgages.
  • Tracker mortgages: This type of mortgage has a variable rate that usually tracks the Bank of England base rate (typically a set percentage above the base rate). Some lenders include a minimum and maximum rate to give you peace of mind. Rates are usually lower than fixed rates on offer at the time of taking out your mortgage. Many lenders offer discount tracker rates to help reduce your monthly payments.

Your age

Most lenders, especially on the high street, impose a maximum age limit on their mortgage products, meaning you’ll typically need to have finished repaying your mortgage by the age of 75-85.

The older you are, the shorter the term is likely to be. However, not all lenders apply maximum age limits, so if you’re an older borrower, you might be able to achieve the term you want with the right lender. Alternatively, you can look at equity release products, that are intended for over 55s.

Your credit history

If you have blots on your credit history, this might result in your lender charging you a higher interest rate to mitigate the risk of lending to you. A broker who specialises in mortgages with bad credit can help you find the best rates given your circumstances.

If you’re unsure what your credit score is or want to check before you go any further, use the free tool below:

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Other costs to consider

There are a few other additional charges to think about that may impact the monthly costs when setting up a mortgage worth £400,000. Speaking to a mortgage broker about the costs listed below will give you more information about what they entail and ensure there are no unpleasant surprises.

Product fees

Some mortgages come with fees to set them up, such as some of the ones listed below:

  • Arrangement fee: Most mortgages include an arrangement fee (also known as a ‘product fee’). These fees usually depend on the complexity of the application and can range from anywhere up to around £2,000. In some cases, these can be added to your mortgage, but that will increase your monthly payment slightly and you will end up paying interest on the fee.
  • Booking fee: Not all mortgages require a booking fee, but those that do will typically ask for around £100 – £200.
  • Valuation fee: Lenders insist on a valuation fee to confirm the purchase price is right and protect their investment. This is likely to cost you in the region of £300.
  • Land registry fee: This is essentially an admin fee you pay to the Land Registry for them to change the register entry to your name. It only applies to properties valued at £100,001 and above. The fee ranges from £45 to £145 depending on the property’s value.
  • Solicitors fee: Also known as the ‘conveyancing fee’, this is the amount you pay your solicitor for their work on the deal. These can vary considerably but as a general guide, expect to pay between £800 and £1,500.
  • Broker fee: If you decide to use their services a broker will typically charge either a percentage of the amount borrowed (usually up to 1%) or a fixed fee (between £500-£1,000 depending on the complexity of the application).


When considering a mortgage, you’ll likely need to account for additional insurance costs. These may include:

  • Home insurance: Covers your property against damage or loss.
  • Life insurance: Provides coverage for the mortgage in case of your death.
  • Income protection: Helps if you’re unable to work due to illness or injury.
  • Critical illness cover: Assists if you’re diagnosed with a serious medical condition

Stamp duty

Depending on the home’s value and whether it’s your main residence, you might be required to pay stamp duty. First-time buyers or those purchasing residential properties under £250,000 are exempt from this tax.

These costs typically arise during the purchase process. While they don’t directly impact monthly payments, they are an additional expense to consider in your calculations.

Why use Online Mortgage Advisor?

With so much to think about when taking out a £400,000 mortgage, finding the right broker is essential.

Our broker-matching service removes the burden of finding the right specialist and introduces you to one with a proven track record of helping people in your situation get the best mortgage deal.

When you enquire, we’ll take some basic details and then pair you with the ideal broker according to your circumstances and those of the property you are looking to buy or remortgage.

To get matched with your ideal broker, call today on 0808 189 2301 or enquire online to arrange a free, no-obligation chat.


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

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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