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£500,000 Mortgages and the Monthly Repayments

Calculate your monthly repayments on a £500,000 mortgage and find out how to secure the best deal

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: June 28, 2022

What are the monthly repayments on a £500,000 mortgage?

If you’re looking to take out a pretty sizeable £500k home mortgage, you’re probably wondering how much the repayments are going to set you back.

Jump to our calculator journey to establish the costs and which of the best deals you’ll qualify for.

Every day, we receive enquiries from customers asking us questions like “How much is a mortgage on a £500,000 house?” or “How do I get approved for a £500k mortgage?”

This article covers what factors are considered for a loan of this size, and how much £500k mortgage repayments are likely to cost you each month.

What monthly repayments can I expect on a £500,000 mortgage?

How much is a mortgage for a £500,000 home?”

Unfortunately there’s no simple answer to this question. When it comes to home loans, how much a mortgage is on a £500k house is dependant on a number of different variables.

All lenders have their own requirements and eligibility criteria which determine what interest rates they offer, and therefore how much a £500,000 mortgage costs you in repayments.

But, before going into more detail about how these criteria can affect this outcome, our mortgage repayment calculator will give you an idea of what the repayments could look like:

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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Interest rate

The two key factors that impact the mortgage payments on a £500k house are interest rate and the length of the term.

This table* demonstrates how mortgage repayments on a £500k home varies based on these two important variables:

Interest Rate 1% 2% 3% 4% 5%
5 year mortgage of £500k £8,547 £8,764 £8,984 £9,208 £9,436
10 year mortgage of £500k £4,380 £4,601 £4,828 £5,062 £5,303
15 year mortgage of £500k £2,992 £3,218 £3,453 £3,698 £3,954
20 year mortgage of £500k £2,299 £2,529 £2,773 £3,030 £3,300
25 year mortgage of £500k £1,884 £2,119 £2,371 £2,639 £2,923
30 year mortgage of £500k £1,608 £1,848 £2,108 £2,387 £2,684
Interest-only mortgage of £500k £417 £834 £1,251 £1,668 £2,085

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

Term length

The term length of a £500k mortgage has a huge impact on how much you can pay your lender monthly, as well as the overall amount of interest that is accrued during the term.

The below table* below shows the impact that reducing a mortgage term for a £500k home loan can have on the amount you will repay.

This example is based on a standard 3% interest rate:

Monthly Repayment Total Repaid Total Interest Paid
£500k 30 year mortgage £2,108 £758,887 £258,887
£500k 25 year mortgage £2,371 £711,317 £211,317
£500k 20 year mortgage £2,773 £665,517 £165,517
£500k 15 year mortgage £3,453 £621,523 £121,523
£500k 10 year mortgage £4,828 £579,364 £79,364
£500k 5 year mortgage £8,984 £539,061 £39,061

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

What other factors impact the cost of a £500,000 mortgage?

The following variables can also impact on the overall cost of a £500k mortgage…


“What salary is needed for a £500k mortgage?”

This is another commonly asked question, and it stands to reason that you want to know whether you can afford a £500k mortgage before taking the plunge.

So, what income is needed for a £500k mortgage, and why is your salary a factor?

All providers will have a restriction on how much they are willing to lend, based on your annual income. Most providers cap at 3x – 4x your salary, although some are more generous and will stretch to 5x or even 6x, under the right circumstances.

Affordability is equally important as this gives lenders a more accurate idea of whether you will realistically be able to keep up with your £500k repayments.

Affordability is calculated by looking at your debt-to-income (DTI) ratio, which is measured by your monthly outgoings from your income. The lower your DTI the better, because this means you have more disposable income available.

Secured loans and £500,000 mortgages

secured loan is money you borrow that is secured against an asset you own. Although it’s important to consider the risks involved, if you’re looking to take out a large mortgage some lenders will consider giving you up to 10x your income.

Contact us to find out more on secured loans and whether it’s the best move for you.


Generally, the more deposit you have, the more favourably you will looked at by lenders. Provided you pass the other eligibility checks, the minimum deposit you will be able to put down is 5% of the property value – so 95% loan to value (LTV).

Most residential providers offer up to 85% LTV, some accept 90%, and a handful 95%. The lower your LTV the better, because by investing more of your own money instills more trust in lenders, and therefore potentially more competitive rates for you.

If you’re in the market for a buy to let property, most mortgage lenders will expect you to put down at least 15% deposit.

Credit history

Mortgage providers are less likely to loan to someone who has has a history of adverse credit as you will likely be  seen as higher risk. However, every provider has different eligibility requirements on what they will accept.

A lot of the time it is dependant on the recency or severity of the issue, although some providers may request a larger deposit, or cap the amount they will lend you.

The most common forms of adverse, ranging from lowest to highest risk, are:

  • Low credit score.
  • Late payments.
  • Mortgage arrears.
  • Defaults.
  • County Court Judgements (CCJs).
  • Debt Management Plans (DMPs).
  • Individual Voluntary Arrangements (IVAs).
  • Bankruptcy.
  • Repossession.

If you’ve experienced any of the above previously, don’t lose hope. You can visit our bad credit mortgage section for more information, or contact us and we’ll refer you to one of the bad credit specialists we work with.


Older people can find it trickier to get a mortgage as they are deemed higher risk. Some lenders do not lend into retirement at all, others may have a cap on how much they are willing to loan, and others have upper age limits – some won’t lend to anyone over the age of 75, while others will stretch to 85.

However, there are lenders out there who have no age restrictions and are more than happy to lend into retirement – provided your retirement income can cover your £500,000 mortgage payments. Find out more on later life lending here.

Employment type

Some jobs are seen as higher risk than others. For example, if you’re self-employed many lenders want to see 3+ years’ worth of accounts to prove that you have a steady source of income.

Those with more conventional jobs may be considered lower risk, and therefore receive better rates. Of course, there are other factors considered, such as contract type, length of time in role, and whether your income has been supplemented with bonuses or commission.

If you fall into a more unconventional employment bracket, don’t lose faith. There are lenders out there offering competitive rates. Contact a whole of market broker today for access to the best deals.

Property type

Buy to Let (BTL) properties

If your £500k mortgage is intended for a BTL investment, bear in mind that different rules apply than for residential mortgages.

Some lenders will require a large deposit of at least 25% (although most will be happy with 15%, subject to your other circumstances). Some providers also have minimum income requirements, which tends to be around the £25k mark.

In addition, a borrower’s affordability also takes into consideration the property’s forecast rental income. Many want evidence that the rent will be able to comfortably cover the repayments by at least 125%.

Second homes

Many lenders consider you slightly higher risk if you already own a home and want a mortgage for a second property. This is because if you fall into financial difficulty, it is assumed you’ll prioritise repayments on your primary home.

For this reason lenders often require a larger deposit, there may be higher minimum income requirements, and higher scrutiny surrounding your affordability.

Non-standard constructions

Some mortgage providers will not lend on properties that fall outside of the conventional construction bracket (e.g. listed buildings, unique properties, buildings with thatched roofs etc), while other lenders consider them higher risk and offer less favourable rates.

However, some lenders are happy to consider such properties and will be able to offer you good, competitive rates. Find out more by visiting our non-standard property section here, or get in touch to speak to an expert advisor.

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If you like what you’re reading or require more information surrounding monthly repayments on a £500,000 mortgage, call Online Mortgage Advisor on 0808 189 2301 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 no obligation or marks on your credit rating.

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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 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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