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£300,000 mortgage repayment example

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Jan 5, 2023

Fact Checked By:
David Nicholson - Finance Editor

£300,000 mortgage repayment example

You may consider a £300,000.00 mortgage to buy your dream home, depending on where you live and how big your property is.

What are the monthly repayments for the mortgage repayments, and what are the steps to get this amount of mortgage deal?

We can get you approved for a mortgage online, start below now:

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Take a look at this repayment calculator to get an idea of the mortgage cost for this amount.

If you prefer, contact us today for mortgage advice from our professional mortgage brokers on getting mortgage approval.

We can also help get you the best interest rates, explain the mortgage repayments and any other questions you may have.


Calculator for mortgage repayments on £300,000

The mortgage repayment calculator will tell you how much your monthly repayments will cost each month as well as the overall mortgage deal.

Our calculator will calculate the total amount of your mortgage, the mortgage term length, interest rate and principal.

This article will explain how monthly repayments for a £300k mortgage work, what you need to make to be eligible, and what factors might affect your mortgage application.

You can call today to speak with our mortgage brokers rather than using the online mortgage calculator. We can explain what is required for a £300,000 mortgage.

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What are the monthly payments on a £300,000 mortgage loan?

Each customer will have a monthly payment on their £300,000 mortgage. This will depend on your income, job, dependents, credit score, and other factors.

The interest rate, the term’s length and the repayment type will all be used to calculate your repayments.

The table below shows how the term length and interest rate could affect your monthly payments.

These rates are only for comparison purposes. Talk to a mortgage broker for more exact rates below:

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What income is required to be eligible for a £300,000 mortgage?

Lenders will use a multiple of your income to determine how much money you can borrow. This is done to determine if you can afford your repayments and other expenses. Some lenders will offer loans up to 4.5x your annual income. Others may do 5x and, in certain circumstances, even 6x.

To qualify for a £300k loan, you must earn approximately £67,000 per year. This is based on 4.5x your annual income, £60k if you have 5x income and £50k if 6x income. Some mortgage lenders will, however assess each application individually and make a decision.

Remember that income is very important. However, lenders will consider how much of your salary you spend on other bills.

Debt-to-income ratio

Mortgage lenders will calculate how much you can afford to borrow.

This is done by assessing your income to debt-ratio. Lenders will consider your monthly income minus any outgoings.

Lenders will consider your DTI as a measure of whether you have sufficient income available to pay for mortgage payments.

These expenses could include:

  • Council tax
  • Utility bills include water, electricity and gas.
  • Broadband and TV Packages
  • Car insurance
  • Credit cards
  • Car financing
  • Childcare costs
  • Contents and home insurance

Talk to an expert to determine your debt-to-income ratio and your mortgage options.

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What amount of deposit are you able to put down?

The mortgage deposit required depends on the price of the property and whether or not you are considered high risk.

Most mortgage lenders limit the loan-to-value (the amount of the mortgage relative to the property’s price) to 90%. Some lenders will accept as little as 10%, while others may require you to deposit more if you’re looking at a mortgage for bad credit.

If you have a higher deposit, like 20%, you will be able to access more lenders and get better rates. This is to lower the chance of you defaulting on your mortgage payments.

If you take out a mortgage for £300,000 this doesn’t mean it’s your entire property’s value.

A £300,000.00 mortgage could be obtained for a house valued at £315,000 with a deposit of 5% of £15,700. However, a £300k property would require an additional deposit of 5% of £15,000, so you would need a mortgage of £285,000.

How to get a mortgage for a £300k house

It’s not the same as taking out a £300,000 mortgage. You won’t likely need to borrow the entire amount of the property.

You must also consider the deposit requirements. A majority of lenders require a 10% deposit to purchase a residential property. To borrow £270,000 from mortgage lenders, however, you will only need to have £27,000.

You may be able to purchase a home with this amount of equity using a £285,000 mortgage. Some providers will accept a 5% deposit.

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How can the length of your term affect your repayments of £300k?

The typical rule of thumb is that the longer the repayment term, the lower it will cost per month but the higher the likelihood of paying back overall.

If you take out a £300,000 mortgage for 30 years at a rate of 3.92%, then you would pay £1,418 per month and £510k total. A 10-year term would cost you £3,026 per month and cost £363k in total.

How can other factors affect your chances of success on getting a £300,000 mortgage?

Before granting a mortgage, most lenders will review your entire application. Although each lender may favour different factors, most lenders will consider your entire application before deciding whether to lend.

Your age

Many lenders have age limits that are set at the time of an application or after the term ends. Some lenders won’t lend money to people over 50 which is their maximum mortgage age or at their maximum mortgage term they can offer to you. Others set the limit at 85. Other lenders have no age limits as long as you are able to prove that you will repay the loan.

Your expenses

Your total monthly expenses, as discussed in the debt to-ration section will also be taken into consideration when you apply for a mortgage. This will be expressed as a percentage.

Type of property

Mortgage lenders prefer more conventional properties because they are easier to sell and have fewer structural problems. They may be cautious about houses with thatched roofs and timer frames, high-rise flats, ex-local authority housing and flats above shops.

Your income source(s)

Some mortgage lenders prefer applicants who have full-time employment on PAYE wages. They will typically not offer attractive rates to applicants with income sources that aren’t standard.

This includes the self-employed or those who receive benefits. The experts that we work with can access lenders who accept different income types.

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Is it possible to get an interest-only £300,000 mortgage?

Yes, you can. An interest-only mortgage will allow you to pay the interest every month up to the end of the term. You can extend the interest-only mortgage term with some lenders. After that, you will have to repay the capital or the entire loan. This could help you keep the cost down, but it means finding other ways to repay the capital amount.

To get an interest-only mortgage you might need to make a bigger deposit, perhaps 25% or 30%. This will offset any potential risks.

Can you get a £300k buy-to-let mortgage?

Yes this is possible. However, you can see that the rules for buy-to-let properties are different from residential ones.

You will often be required to have a minimum income and put down a higher deposit, such as 25%. While lenders will accept a lower deposit, such as 15%, there are still requirements.

You need a suitable property and sufficient rental income to cover at least 125% of your monthly mortgage payments (based upon an interest-only repayment type).

What mortgage calculators are available?

You can find a mortgage calculator at the end of this page.

While it is a good idea to calculate your costs before applying for a £300,000 mortgage, one of the most unpleasant surprises could be a possible loan rejection; remember that these calculators will not give you an exact cost but only a rough estimate of what you might be eligible for.

Talk to a Loan Corp for a more precise calculation of how much a £300,000 mortgage might cost.

Take a look at other mortgage repayment examples:

Talk to an expert about your £300,000 mortgage requirements

A mortgage broker can help you find the best interest rate and make it easier to get a £300k mortgage.

A mortgage broker can help you save money by suggesting mortgage deals that are more affordable or better suited to your needs.

While some lenders may not lend to specific borrowers due to strict criteria, it doesn’t mean those with special circumstances, such as bad credit, should not be denied £300,000.

We work with brokers with access to hundreds more lenders in the UK. They can help you find lenders more likely to take you on board.

Contact us today to receive a no-obligation, free chat. All of our mortgage brokers are regulated by the FCA.

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