Repayments on a £90,000 Mortgage

Repayments on a £90,000 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 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 £90,000 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 £90,000 mortgage cost per month?

At the time of writing (April 2024) the average monthly repayments on a £90,000 mortgage are £526. 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 £157,839 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 expert mortgage brokers we work with for 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.

How much do you need to earn to get a £90,000 mortgage?

The amount you can borrow is based on your salary. Most lenders will loan around 4 or 4.5 times your annual salary. You’d need an annual income of at least £20,000 to be approved for a £90,000 mortgage. This is below the average UK annual salary of £34,900 (April 2024).

You might want to consider getting a joint mortgage with a partner, for example, if you earn less than the figure listed above. By doing so, your combined earnings can be used for this calculation.

Some lenders may also be willing to offer 5 times or possibly even 6 times the annual salary but this is often reserved for certain professions deemed low risk such as doctors, nurses or police. In these circumstances, it’s best to consult with a broker who can indicate which lenders can offer this and whether you’d likely qualify.

The chart below illustrates the amount you can borrow in more detail:

Bear in mind that if you’re applying for a joint mortgage with one or more other applicants, lenders will usually look at your combined earnings. Limited options are available, usually through a broker, for people who need to borrow up to 6x salary.

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 annual income, take a look at our mortgage affordability calculator below:

How much deposit do you need for a £90,000 mortgage?

At present, most residential mortgage lenders impose minimum deposit requirements ranging from 5% to 10%. This percentage is based on the property value, not the mortgage amount.

For instance, if you were purchasing a property valued at £90,000 (rather than borrowing this exact amount), your minimum deposit would fall within the range of £4,500 to £9,000. Consequently, your mortgage amount would be between £85,500 and £81,000.

As most house prices in the UK are above £100,000, you’ll likely need a larger deposit of around 25% or above to have a £90,000 mortgage on a property. A higher deposit will allow you to qualify for more competitive interest rates and reduce your monthly repayments compared to a smaller 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 £90,000 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.

Remember: The larger your deposit, the more likely you are to qualify for competitive interest rates. Lenders often reserve their best rates for mortgages with the lowest loan-to-value ratios.

You can see how this works on our calculator below.

How to get a £90,000 mortgage

Once you’ve found a property and made some calculations, the next step in your mortgage application should be to speak to a mortgage broker to ensure you get the best rate and deal on your mortgage. Make an enquiry with us and we will match you with the right advisor for free.

They’ll be able to help with:

• Deposit requirements: A minimum deposit of 5% to 10% will be needed for a £90,000 mortgage. The exact amount will depend on the value of the property you’re purchasing. A simple way to save money towards a deposit is to open a savings account and transfer 10% to 20% of your monthly income. This will help you build up a deposit and may result in a larger deposit which will mean you get access to more competitive interest rates.
• 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 £90,000 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 £90,000 mortgage

To show how some of these variables can impact the amount paid back each month on a £90,000 mortgage, read the table below. It considers interest rates between 1% and 6% and multiple mortgage term lengths.

For an interest-only mortgage, you can expect repayments to be substantially lower and remain the same regardless of the term length. This is because the capital amount borrowed must be repaid in full, using a separate repayment vehicle, at the end of the term.

For the purpose of this table, we assume the interest rate stays the same for the entire length of the mortgage. Interest rates can change if you decide to remortgage 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% (April 2024) and the average mortgage rates between 5%-6%, the repayment figures for these columns in the tables would be the most realistic at present. However, as the base rate falls in the future mortgage lenders should follow suit and reduce their rates too.

Factors that affect monthly repayments

In addition to those mentioned above – interest rate, loan term, deposit, mortgage type and repayment method – your repayments can also be affected by several other factors indirectly, such as your age and credit history, as 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 rate you secure will influence the monthly cost. Everything else being the same, a higher interest rate will mean you pay more for a £90k mortgage monthly. The rates available on the market can vary. So, dealing with a lender who can offer the most competitive rate for your circumstances is important.

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

How long you take out a mortgage for can affect your rates and directly impact your monthly cost for a £90k loan. A longer term will likely reduce your monthly repayments, but it usually means paying more over the life of the mortgage.

You may still be able to get a good rate by approaching a specialist lender that is more sympathetic to your situation if you don’t match the eligibility criteria of high street lenders. 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.

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 £90,000 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:

The other costs involved

When deciding how much a £90,000 mortgage will cost, it’s important not to forget other payments involved in the mortgage process and to factor those into your budget. Not all mortgages will come with all of the below fees but whether a lender waives certain ones is at their discretion.

Why use Online Mortgage Advisor?

To walk away from your mortgage process confident that you’ve got the best deal possible, you need to partner with an experienced broker; and not just any experienced broker but one who works with mortgages of this size daily.

They will know what rates and terms are typical, where repayments are likely to land for individual circumstances and which lenders offer the best chance of approval. This will help you submit a stronger application to a lender more likely to offer you the terms and rates you want to see.

The brokers we work with span the mortgage spectrum but by simply filling out our online form or calling 0808 189 2301, you’ll be matched to the right expert in this field.