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Repayments on a £100,000 mortgage

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By Pete Mugleston  | Mortgage Advisor Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 9th October 2019 *

We often hear from customers who are in the market for a £100,000 mortgage, some of them have been declined a mortgage or have bad credit history.

Many of them want to know what the monthly repayments will be on a £100k mortgage, others are unsure how much deposit they will need, and some are keen to hear how the term length will impact affordability.

You will find the answers to all of these questions and more in our guide to £100,000 mortgage repayments.

The following topics are covered in detail below…

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What is the monthly repayment on a £100,000 mortgage?

Customers often ask us “what are the average repayments on a £100K mortgage?” and the answer comes down to a number of factors. For instance, interest rates need to be considered and they can vary from one lender to the next, based on things like the borrower’s credit rating. Then there’s term length to take into account - the longer the term, the less you’re likely to pay each month.

The table below (approximate figures) illustrates how the typical repayments on a £100,000 mortgage loan (taken out on a repayment basis) can vary based on these two factors.

Interest Rate

1%

2%

3%

4%

5%

5 years

£1,709.18

£1,751.98

£1,795.07

£1,838.43

£1,882.04

10 years

£875.84

£919.32

£963.74

£1,009.06

£1,055.24

15 years

£598.49

£643.51

£690.58

£739.69

£790.79

20 years

£459.89

£505.88

£554.60

£605.98

£659.96

25 years

£376.87

£423.85

£474.21

£527.84

£584.59

30 years

£321.64

£369.62

£421.60

£477.42

£536.82

35 years

£282.07

£330.33

£382.59

£438.50

£497.63

The above data is for demonstrative purposes only. Consult your lender or broker for the most up-to-date information and rates.

The interest rate you end up on if you borrow a £100k mortgage will depend on the level of risk the lender is taking on, which they’ll determine based on factors such as how much deposit you’re able to put down and your profile as a borrower. If you’re still unsure about how much the repayments are on a £100k mortgage, get in touch and the advisors we work with will clear things us.

Does the term length affect the repayments and the total amount I’ll pay?

Customers often ask us “how long does it take to pay off a £100,000 mortgage?” and the answer will depend on the term length. How long you’re able to take out a mortgage for will be based on how much you can afford to pay each month. A longer term usually means lower monthly repayments you’ll be handing over more interest in the long run, bumping up the overall cost.

Based on the average interest rate of 3%, the table below illustrates the total amount you will pay for a £100k mortgage and how this will differ across longer and shorter terms.

 

Monthly Repayment

Total Repaid

Interest Paid

100k mortgage over 30 years

£419.42

£150,992.71

£50,992.71

100k mortgage over 25 years

£472.11

£141,632.62

£41,632.62

100k mortgage over 20 years

£552.57

£132,617.57

£32,617.57

100k mortgage over 15 years

£688.64

£123,954.59

£23,954.59

100k mortgage over 10 years

£963.74

£115,648.82

£15,648.82

100k mortgage over 5 years

£1,795.07

£107,704.26

£7,704.26

The above data is for demonstrative purposes only. Consult your lender or broker for the most up-to-date information and rates.

As you can see from the table above, there are substantial savings to be made if you take out your mortgage over a shorter term. For example, the overall cost of a £100,000 mortgage over 20 years is £133,200 compared to £142,200 over 25 years, which means you’d save £9,000.

Whether your lender will allow you to take a home loan over a shorter term depends on whether you’d be able to afford the monthly payments. Talk to one of the expert advisors we work with for the right advice on affordability.

We’ll find the perfect mortgage broker for you - for free

Save time and money with an expert mortgage broker who specialises in cases like yours

  • Save up to £400 per year with the right advice (source: FCA)
  • Over half of our customers had been declined elsewhere
  • All the brokers we work with have whole of market access
  • Our quick & easy form takes a couple of minutes to complete

Does being self-employed affect getting a £100,000 mortgage?

Things become somewhat more complicated if you’re self-employed or make a significant portion of your wages through supplementary sources like commission, overtime and benefits, as every provider has a different stance on what they recognise as declarable capital.

With this in mind, specialist advice is recommended for those with ‘non-standard’ income, so make an enquiry and the advisors we work with will introduce you to the lender best positioned to help you out.

If you want to read more information on self-employed mortgages visit our article.

How much deposit is needed for a £100k mortgage?

Mortgage lending is based how much you need to borrow offset against the value of the property and lenders refer to this as the loan to value (LTV) ratio.

If you were to put down a deposit of £10,000 on a property worth £100,000, you would own 10% of it outright and need to borrower 90% of its value from your mortgage lender - so, your LTV ratio would be 90%.

The maximum LTV you will find for a residential property in the UK is 95%, so you will need at a deposit of at least £5,000 to get a mortgage for a £100k house.

Some lenders may prefer you to put down more than that to lessen any risk involved in the deal, and many might insist upon it if you have any bad credit on your file or the property you’re buying has ‘non-standard’ construction.

Can I get a £100,000 mortgage with no deposit?

The vast majority of UK mortgage lenders no longer offer 100% mortgages, so you would usually need some kind of deposit for a £100,000 mortgage. One of the only ways to get a mortgage with no deposit whatsoever is if a family member or close friend agrees to act as a guarantor.

With a guarantor mortgage, the family member or friend who is supporting you will need to secure the loan against a property they already own or place a lump sum in a savings account held by the lender. They will be unable to withdraw from this pot until a certain amount of the mortgage has been paid off, and may be liable to cover any payments the borrower misses.

For more information about guarantor mortgages and the other options that might be available, make an enquiry or consult our dedicated article about this topic

Does having bad credit affect how much deposit I need for a £100k mortgage?

We often hear the question “how much deposit do you need for a £100k mortgage if you have bad credit?” and the answer will depend on a number of factors, including the lender’s appetite for risk.

Some lenders will expect you to put down more than the minimum deposit amount if you have adverse credit, but exactly how much more might depend on the severity of the credit problem, how long it has been on your file and how closely you meet their other eligibility requirements.

The most common credit issues include…

A specialist lender is often called for if there’s any of the above on your file, but if the adverse is minor (such as a low credit score or a missed bill payment) there’s a chance you will be approved with the minimum deposit amount, or at least without having to put down much extra.

However, with severe issues like a bankruptcy, some providers might ask for a significantly higher deposit.

The above data is for demonstrative purposes only. Consult your lender or broker for the most up-to-date information and rates.

For more information about bad credit mortgages, consult our dedicated page on the topic.

Can I get a £100,000 buy to let mortgage?

Assuming there’s a property on the market that this loan will cover and you pass the lender’s eligibility and affordability checks, there’s no reason why not.

There are things you should keep in mind when applying for a buy to let mortgage, though. Firstly, the deposit requirements are typically higher, with some lenders expecting as much as 25%, although others may offer you a BTL mortgage with a 15% deposit.

Certain providers have minimum income requirements for BTL, too, with around £25,000 being standard, but affordability usually comes down to the viability of the investment - i.e. whether the property’s forecast rental income will cover the monthly mortgage payments by 125-130%.

Also take note that there are lenders who only offer BTL mortgages to borrowers who have owned and lived in their home for at least six months, although some specialist providers offer buy to let deals to first-time buyers, subject to their eligibility requirements being met.

Most BTL mortgages are offered on an interest only basis. See the section below to find out what the monthly repayments on a £100,000 interest only mortgage might be.

Can I get a £100k interest only mortgage?

Yes, it might be possible as some lenders offer these mortgages to residential borrowers who can evidence a viable repayment vehicle to settle the debt at the end of the term.

Interest only mortgages - which see the borrower paying off just the interest each month and settling the loan amount at the end of the agreement - typically come with higher deposit requirements as most lenders only offer 75% loan to value (LTV), a few go up to 80% and a minority will stretch to 85%, under the right circumstances - i.e. when the deal is considered low risk.

The table below shows how the monthly repayments for a mortgage on a £100k house can differ on an interest only deal compared to a repayment, based on 4% interest.

 

Monthly Repayment

Interest only

5 years

£1,795.07

£333.00

10 years

£1,009.06

£333.00

15 years

£739.69

£333.00

20 years

£605.98

£333.00

25 years

£527.84

£333.00

30 years

£477.42

£333.00

35 years

£438.50

£333.00

The above data is for demonstrative purposes only. Consult your lender or broker for the most up-to-date information and rates.

For more information about residential interest only mortgages and what lenders typically class as acceptable payment vehicles, check out our article on the subject or make an enquiry today.

Other factors that may affect a £100,000 mortgage application

We’ve already discussed how your credit rating, deposit and income can affect a £100k mortgage agreement, but whether your application is successful and the interest rate you end up on might also depend on the following factors…

  • Your age:
    Some lenders have strict age limits and won’t deal with customers over 75. Others will go up to 85 and a minority will lender to customers even older than this, as long as the borrower can prove they can keep up with the payments during retirement.
  • The property type:
    If the property you’re buying includes an ‘non-standard’ construction (e.g. thatched roof, timber frame), a specialist lender might be needed as some consider these buildings high risk. Read more about non-standard construction mortgages here.
  • Whether you own another property:
    Some lenders consider borrowers who are in the market for a second home higher risk. Their deposit and income requirements might be higher, and they may be more stringent in their affordability checks.

For more information about how to get a £100,000 mortgage loan, make an enquiry and one of the advisors we work with will connect you to the right lender for someone in your shoes.

£100,000 secured loans

Secured loans - also known as homeowner loans or second charge mortgages - might be a viable option for anyone who needs to raise capital but cannot, or does not wish to, remortgage.

It would certainly be possible to get a £100,000 homeowner loan, secured against a property on a second charge basis, as long as you meet the lender’s eligibility requirements. On the subject of affordability and eligibility checks, lenders are usually more lenient when it comes to these products.

Factors like non-standard income and bad credit are usually less of an issue, while loan to value (LTV) can be flexible. Some lenders are known to offer up to x10 the borrower’s income for a secured loan.

For more information about secured loans, visit our dedicated article about them.

Where can I find a £100,000 mortgage calculator?

There are £100k mortgage calculators available on lender’s websites, but keep in mind that the numbers they feedback to you will differ across the spectrum. This is because certain lenders use different calculators to others. Some might feed in data such as your credit score, while others simply base their output on your income, deposit, the interest rate and the term length.

Your best bet is to make an enquiry with the advisors we work with, as they can calculate the maximum amount you’re able to borrow and the most favourable terms you’re eligible for, and will introduce you to the lender that is best positioned to offer them.

We’ll find the perfect mortgage broker for you - for free

Save time and money with an expert mortgage broker who specialises in cases like yours

  • Save up to £400 per year with the right advice (source: FCA)
  • Over half of our customers had been declined elsewhere
  • All the brokers we work with have whole of market access
  • Our quick & easy form takes a couple of minutes to complete

Speak to a £100,000 mortgages expert

We’ve helped over 100,000 people find the right mortgage, many who had been previously declined a mortgage or had bad credit history.

If you’re still wondering ‘can I afford a mortgage of £100,000?’ or would like to know more, call Online Mortgage Advisor today 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 absolutely no obligation or marks on your credit rating.

Updated: 9th October 2019
OnlineMortgageAdvisor 2019 ©

FCA disclaimer

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