£300,000 Mortgage : Monthly Repayments & Income Requirements

Here, we’ve put together everything you need to know about what the repayments on a £300,000 mortgage could be, how much income you’ll need to earn and why using a mortgage broker can help secure the lending you need with the best interest rates.

To start, use our calculator below to get a rough idea of how much a mortgage of this amount could cost you each month based on different interest rates and term lengths.

How much does a £300,000 mortgage cost per month?

Based on a standard repayment mortgage with a typical interest rate available currently (October 2023) of 5.5% and a term length of 25 years, you should expect to pay £1,842 per month.

However, the exact size of your monthly repayments will depend on a number of factors, namely your interest rate, term length, and the type of mortgage you opt for, such as a tracker, fixed-rate or interest only loan.

Mortgage repayment tables

Our mortgage repayment tables will give you an idea of how much monthly payments on a £300k mortgage will be, based on a standard capital and repayment method.

For a more accurate, bespoke figure, using the most competitive rates available at that time, get in touch and we’ll match you with one of our expert brokers who’ll be able to help.

For the purpose of the table above we are assuming the interest rate stays the same for the full length of the mortgage. Interest rates can change if you decide to remortgage to a different rate or move from either a fixed or discounted deal to the lender’s standard variable rate (SVR).

You could decide to opt for an interest-only mortgage, in which case your monthly repayments would be significantly lower. Using the same rate (5.5%) and term (25 years) as above, the monthly repayments for £300,000 using this method would be £1,375.

However, you’d still need to pay back the full amount borrowed at the end of your mortgage term and your lender would require evidence of a viable repayment vehicle.

How much do you need to earn to get a £300k mortgage?

Generally speaking, you can borrow 4 to 4.5 times your combined annual household income. That means your annual earnings would need to be between £75,000 and £66,000 to borrow £300k. This can be on either a sole or joint basis, depending on how you wish to apply and your personal circumstances.

However, all lenders have different approaches in calculating how much they are willing to let you borrow for a mortgage. Some may be happy to go above 4 times your income if other parts of your application are strong enough. Some may go up to 5 times and a very select few go to 6 times. The higher the multiplier, the less you need to earn. If you’re eligible for 6 times income – usually only available to certain professions, such as a doctor or lawyer – you would need to earn £50,000 to borrow £300k.

If you’d like to see how this works out for yourself, based on your own annual income, take a look at our mortgage affordability calculator below:

How to get a £300,000 mortgage

After you’ve found the property you want to buy and made some calculations, make an enquiry with us so we can match you with the right mortgage broker to boost your chances of securing the best rate and deal.

They’ll be able to help with:

• Working out how much you can borrow. You may have set your sights on a £300,000 mortgage, but do you definitely know you can borrow that amount? A mortgage broker, using typical lender salary multiplier calculations, will be able to quickly confirm this for you.
• 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.
• 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.
• 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, recent bank statements, personal ID etc.

How much deposit do you need for a £300,000 mortgage?

Typically, you will need between 5%-10% of the property value (not the mortgage amount) as a deposit. So, if you were buying a property valued at £300,000 (rather than borrowing this amount) you’d need a deposit of between £15,000-£30,000 and then you’re actual mortgage would be between £285,000-£270,000.

If you wanted to borrow £300k specifically then the property values would need to be (approximately) between £316,000-£333,000 if you only have a deposit of between 5%-10%.

However, the higher your deposit the more likelihood of qualifying for the most competitive interest rates as mortgage lenders will reserve their best rates for mortgages with the lowest loan-to-value (LTV).

It’s not completely out of the question to secure a mortgage for £300,000 with no deposit at all, but this is extremely rare at the moment.

You can see how this works on our calculator below.

Other factors that can affect your mortgage 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 take all of these into consideration 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.

Additional costs to consider

It’s important to remember that your monthly repayments are just part of the cost of getting a mortgage.

There are several other fees you’ll need to take into consideration, such as:

Arrangement fee

Also known as a product fee or booking fee, this is charged by your lender and is either paid upfront or added to the cost of your mortgage. Remember that adding it to your mortgage will push your monthly repayments up and incur more interest. The size of this fee varies quite dramatically but is usually in the region of between £1,000-£2,000 .

Booking fee

Lenders typically charge this fee for borrowers to secure a certain product such as a fixed rate or a discount deal. It’s usually between £100-£200.

Valuation fee

Your lender will carry out a valuation to check you’re paying what the property is worth. This will typically cost you anywhere between £250 and £1,500, depending on the complexity involved.

Survey fee

A survey checks the general condition of the property you’re buying, including looking for any structural damage or damp. It can cost between £200-£600, depending on how in-depth you want the survey to be .

Stamp Duty

This is the tax you pay when buying a property. The amount of stamp duty you pay will depend on the price of the property, whether you’re a first-time buyer or not and if this is a main residence or second home.

Conveyancing fee

This covers all the legal work associated with buying a property and can cost up to £2,000.

Why use Online Mortgage Advisor?

If you’re looking to buy a property with a £300,000 mortgage, a broker who specialises in this bracket size is best placed to help you. They have relationships with all the lenders and know exactly who to approach based on your particular circumstances.

Our broker-matching service can connect you with an expert who will help you find the a deal best suited to your specific circumstances. Give us a call on 0808 189 2301 or make an enquiry and get matched with an expert today for a free initial conversation.