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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: 30th November 2020*

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

Many of them want to know what the monthly repayments will be if they borrowed £100k, 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, since they are based on your credit rating, affordability and general eligibility. 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 illustration purposes only. Consult your mortgage 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 work with you to give you an idea of the kind of rates you might be able to get, based on your specific circumstances, affordability and eligibility.

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 over 30 years £419.42 £150,992.71 £50,992.71
100k over 25 years £472.11 £141,632.62 £41,632.62
100k over 20 years £552.57 £132,617.57 £32,617.57
100k over 15 years £688.64 £123,954.59 £23,954.59
100k over 10 years £963.74 £115,648.82 £15,648.82
100k over 5 years £1,795.07 £107,704.26 £7,704.26

The above data is for illustration 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 borrowing £100,000 over 20 years is £133,200 compared to £142,200 over 25 years, which means you’d save £9,000.

As a general rule, 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 your mortgage.

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

If you’re self-employed, or make a significant portion of your wages through supplementary sources like commission, overtime and benefits, borrowing may not be quite so straightforward because 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.

Read more on self-employed mortgages.

How much deposit is needed?

Lending is based on how much you need to borrow offset against the value of the property and this is generally referred to 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 mortgage 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 providers 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 maybe liable to cover any payments the borrower misses.

To learn more about guarantor mortgages and the other options that might be available or make an enquiry to speak to one of the expert mortgage brokers we work with.

Does having bad credit affect how much deposit I need?

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 mortgage 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 following bad credit mortgages might still be available:

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.

Read more about bad credit mortgages.

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 repayments 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 but you’ll need to 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 illustration 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 repayment vehicles, check out our article on the subject or make an enquiry today and ask one of the expert brokers we work with about mortgage deals you might be eligible for.

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.
  • 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 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.

Learn more about secured loans.

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

There are £100k mortgage calculators available on lenders’ websites, but keep in mind that the numbers they feedback to you will differ across the spectrum. This is because certain lenders calculate things differently 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. They will make a specific mortgage calculation based on your specific circumstances. They can calculate the maximum amount you’re able to borrow, find the best mortgage rates you could be eligible for, and introduce you to the lender that is most likely to offer the best mortgage deals.

Speak to an expert for advice

We’ve helped over 120,000 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 0808 189 2301 or make an enquiry here.

The service we offer is free, there’s absolutely no obligation and we won’t leave a mark on your credit rating.

Updated: 30th November 2020
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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 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.