Repayments on a £60,000 Mortgage

See what the monthly repayments could work out at for a £60,000 mortgage by using our monthly repayments calculator.

Home Mortgage Repayments Repayments On A £60,000 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 £60,000 mortgage vary depending on your mortgage type and personal circumstances. Your mortgage repayments will be determined by the length of your term, interest rate, and the type of mortgage you get.

A longer term results in smaller monthly repayments but you’ll pay more overall. 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, we’ll look at the monthly repayments you can expect for a £60,000 mortgage, annual income, and the deposit amount you’ll need to apply for this mortgage. As well as how using a mortgage broker can help you obtain the lending you need at the most competitive interest rates.

How much does a £60,000 mortgage cost per month?

At the time of writing (May 2024) the average monthly repayments on a £60,000 mortgage are £351. 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 £105,226 by the end of your mortgage term.

However, if you secure a mortgage with a longer term, 30 years for example, the total amount you pay back will be higher but your monthly repayments will be smaller.

Speak to one of the advisors we work with to get a rough idea of what you might repay. They can help you secure favourable terms and lower repayments than 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.

Enter the amount you're borrowing
Enter the mortgage rate, 5.5% is a typical rate currently but this can vary
Enter the mortgage term, 25 years is the average but lenders can offer shorter and longer terms

Your Results:

The monthly repayments on a mortgage would be

The total amount paid at the end of your mortgage term would be

Get started with an expert broker to find out how much they could help you save on your mortgage repayments.

Get Started

How much do you need to earn to get a £60,000 mortgage?

In general, the amount you can borrow is based on your salary. Most lenders will loan around 4 or 4.5 times your annual income. Based on these figures, you’d need an annual income of at least £15,000 to be approved for a £60,000 mortgage. This is below the average UK annual salary, currently £34,900 (May 2024).

Some lenders may also be willing to offer 5 times or possibly even 6 times your annual salary. However, the circumstances in which this would be likely are if you already have a large deposit and/or the house you’re looking to purchase is valued at £100,000 or less.

As £60,000 is a relatively small sum for a mortgage, you’ll likely need a large deposit to be approved or have specific circumstances, such as being a retiree looking to downsize to a smaller property.

You might want to consider getting a joint mortgage with a partner, for example, if you’re unsure whether you’ll meet the lender’s eligibility criteria. This will allow you to use your combined earnings to reach the minimum income requirements set by lenders.

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.

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.

Get Started

How much deposit do you need for a £60,000 mortgage?

Most residential mortgage lenders require a minimum deposit of around 5% to 10%. This percentage is based on the property value, not the mortgage amount.

As most house prices are above £100,000 in the UK, you’ll likely have a large deposit of 25% or above if you have a £60,000 mortgage on a property. A higher deposit allows you to qualify for more competitive interest rates, as lenders often reserve their best rates for mortgages with the lowest loan-to-value ratio. This will result in smaller monthly repayments compared to a low deposit.

You’ll also need a higher deposit of around 25% if you have issues with bad credit or you’re looking to get a mortgage for a non-standard construction property. Bear in mind, this will limit the choice of lenders available to you.

It’s not impossible to secure a mortgage for £60,000 with no deposit, but it’s uncommon.

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.

You can see how this all works out on our calculator below.

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.

Get Started

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

Get a quote from an expert

Ask Us A Question

We can help!

We know everyone's circumstances are different, that's why we work with expert brokers who specialise in finding the best deals.

Ask us a question and we'll get the best expert to help.

Feefo 5 Stars
1 of 3
2 of 3
3 of 3 Send!

How to get a £60,000 mortgage

Once you’ve found a property and made some calculations, the next step in your mortgage application should be to find an experienced mortgage broker. 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 enquiring online.

They’ll be able to help with:

  • Deposit requirements: The circumstances in which you’ll be approved for a £60,000 mortgage, will likely involve you having a large deposit and £60k being a top-up on top of this. If you’re a high-net-worth individual, for example, saving won’t be an issue. But putting aside 10% to 20% of your monthly income will help you build the large deposit you’ll need to get approval for a £60,000 mortgage.
  • Downloading and optimising your credit reports: It’s important to review your credit history before you apply for a mortgage, 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.
  • Working out how much you can borrow: You might assume that £60,000 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.
  • Finding the right lender and securing the best deal for you: Your mortgage broker will be able to identify those lenders offering the best interest rate terms available across the whole market. This will save you time and, potentially, some money too.
  • Guiding you through 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 £60,000 mortgage

This table lays out a variety of monthly payments for a £60,000 mortgage based on interest rates between 3% and 6% across term lengths of 10 to 30 years.

With the Bank of England base rate currently at 5.25%  (May 2024) and the average mortgage rates between 5%-6% the repayment figures for these columns in the table would be the most realistic at present. However, this can change once the base rate reduces in the future and mortgage lenders follow suit.

For interest-only mortgages, the repayment remains as is regardless of the term. So, for example, the repayment shown for 6% – £300 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 10 years 15 years 20 years 25 years 30 years Interest-only
2% £552 £386 £304 £254 £222 £100
3% £579 £414 £333 £285 £253 £150
4% £607 £444 £364 £317 £286 £200
5% £636 £474 £396 £351 £322 £250
6% £666 £506 £430 £387 £360 £300

For the purpose of this table, 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).

Factors that affect monthly repayments

As well as those mentioned above – interest rate, loan term, deposit, mortgage type and repayment method – your repayments can also be affected by several other factors, such as your age and credit history. These could limit the number of lenders willing to consider your application.

A broker will consider these and match you with the right lender. They also get access to exclusive deals and can negotiate with lenders on your behalf, saving you both time and money.

Interest rates

The lower the interest rate, the smaller your repayments will be.

Getting the most competitive interest rates will rely on a lender seeing you as a trustworthy borrower. A broker would be able to advise on how to put forward a strong mortgage application whilst sharing which mortgage providers are currently offering the best rates.

Fixed or Tracker

You’ll also have the option to choose between a fixed rate vs a tracker mortgage. Usually, a fixed rate will be higher, increasing your monthly repayment. But, locking in a rate can allow you to plan your finances ahead of time. A tracker mortgage will match current interest rates, which could result in higher repayments if the rate is raised.

Term Length

The longer the term, the lower your monthly repayments will be. Traditionally, mortgage terms are taken over 25 years but nowadays (depending on the applicant’s age and the strength of their application) loan terms can stretch as far as 40 years.

However, the longer terms also mean you’ll pay more interest overall. The best way to approach this is to work out how much you can comfortably pay each month and fit the term to suit your budget.

Your age

Although it’s possible to get a mortgage at almost any age, time on your side can lead to better deals from lenders. This could mean lower rates and monthly repayments for your £60,000 mortgage.

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 specialising 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:

Access your credit report through a free trial

Credit rating illustration
Get my FREE report

Other costs to consider

While concentrating on securing the mortgage itself, it’s easy to forget that monthly repayments are among the multiple costs involved in a mortgage application process. You’ll need to put aside money for the fees outlined below too.

Fee Cost How to pay
Arrangement fee £0 to £2,000+ Paid upfront or monthly addition to mortgage repayment
Booking fee £100 to £250 Paid upfront
Valuation survey fee £0 to £500 Paid upfront
Home buyers report £400 to £2000+ depending on level of survey Paid upfront
Stamp duty 0 to 15% of a property’s value depending on what you’re using the property for Paid upfront
Conveyancing fee £850 to £1500 Partial payment upfront
Broker fee Depends on mortgage size (usually either a percentage of the amount borrowed or a fixed-fee) Can discuss with broker
Deposit Typically 10% of property’s value Paid upfront

Sidenote: Some lenders will cover some fees on your behalf. A broker can advise on what circumstances would allow for the waiving of the fees and which lenders do so.

Why use Online Mortgage Advisor?

An experienced broker can offer concrete calculations alongside guidance on what mortgage rates and terms are best for your circumstances.

The ones we work with have specific knowledge of mortgages of all sizes. They’ll be able to ascertain whether £60,000 is the mortgage size you need, advise on the ideal repayment amount and then share which lender is likely to offer a loan that matches that figure.

Getting in touch via our online form or by calling 0808 189 2301 will see you swiftly matched to the right broker for your needs.

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

Ask Us A Question

We can help!

We know everyone's circumstances are different, that's why we work with expert brokers who specialise in finding the best deals.

Ask us a question and we'll get the best expert to help.

Our Brokers

Get in touch today

Make an enquiry and we'll arrange for an experienced mortgage broker we work with to contact you straight away.

1 of 3
2 of 3
3 of 3 Send!

Maximise your chances of approval, whatever your situation - Find your perfect mortgage broker

By browsing our site you consent to our use of cookies.