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£350,000 mortgage repayment example

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Jan 5, 2023

Fact Checked By:
David Nicholson - Finance Editor

£350,000 mortgage repayments example, lenders, and how to get approved

This article will show you how much a £350,000 mortgage monthly repayment might cost, what type of deposit you’ll likely require, and how you can get the best interest rate.

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Many people ask us about £350k mortgages. We work with expert mortgage brokers who are all-of-market and can help you find the right mortgage deals.

Use our mortgage calculator below here:

 

Can I get a £350,000 mortgage approved?

Every independent mortgage provider and high street bank will have different criteria for assessing an applicant’s eligibility for mortgage deals. Some banks will offer you mortgage deals while others might not.

Many people base their expectations on the mortgage calculator results. While this can provide a rough idea of how much you might be able to borrow, it doesn’t consider all variables.

Most mortgage lenders will consider all the following before making a decision:

Lenders are distinguished by how much weight each factor carries. Some lenders may approve a mortgage with a higher loan-to-value (LTV) if you have other qualifying circumstances. Others require lower deposits.

Some providers might be open to considering you even if your credit history is not good. Others may have more stringent requirements regarding the history of adverse credit. It’s important to not feel discouraged if you have been denied a mortgage in the past.

However, a rejection of an application can hurt your credit score. Our team of experts has access to over 100 UK lenders and banks and can recommend the most likely candidates.

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What would a mortgage for a £350k-value property cost?

Many factors can affect mortgage deals. The first is the length of your term: shorter terms will result in higher short-term repayments but lower long-term payments.

Your credit history can also impact the amount of interest that you pay. This will affect how much you will be able to repay.

The mortgage repayment calculator can give you an estimate of the potential monthly repayments.

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What amount of deposit is required to obtain a £350,000 mortgage loan?

Although there is no minimum deposit required by all lenders, most residential mortgage providers require a minimum of 15% to 20%. This will vary depending on your circumstances and the criteria.

For example, borrowers looking for a mortgage of £350k will need to have saved at least £52,500.

More than ever, mortgage lenders want to be sure that borrowers can repay their loans on time and in full. A larger deposit can help to ease your concerns if you have doubts.

Lenders may consider certain products to be more risky, such as interest-only mortgages and buy-to-let mortgages. This is because the repayments depend on income from tenants. Deposit requirements are typically higher, usually between 25% and 40%.

Can I get a £350k loan with a 5% deposit?

You will not be offered the lowest rates for a mortgage if you don’t have at least a 5% or 10% deposit option.

For first-time buyers, however, there is a new Help To Buy scheme. To qualify, you will need to save at least 5% and then the government will provide an equity loan up to 20% (40% in London). This will go towards your down payment.

The new scheme has regional lending caps. Therefore, your eligibility will depend on the place you are looking to buy. Talk to a broker to learn more about the Help to Buy equity loans scheme 2021-2023.

All of our mortgage brokers are regulated by the FCA. Start your application below:

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£350,000 mortgage calculator

The mortgage repayment calculator will tell you how much your mortgage payments will cost each month as well as overall. Our calculator will calculate the total amount of your mortgage, as well as the term length, interest rate and principal.

Use the calculator below:

 

Example calculations for a £350,000 mortgage repayment example

Below is a table that shows how monthly payments on a £350k mortgage could vary based on different terms and mortgage interest rates.

Rates will vary depending on how much you deposit and what risk you have. The higher your credit score, the higher the rate you’ll be able to access.

Still unsure? Get in touch for free mortgage advice. All of our mortgage brokers are regulated by the Financial Conduct Authority.

We will give you an accurate idea of your situation and help you find the right lender to match you.

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What does my mortgage term have to do with my total interest and my monthly repayments?

The type of mortgage you choose will determine how long it takes to pay off your mortgage. The lender’s assessment of you as risky will also impact this.

Below is a table that indicates the average interest rate at 3%. It is easy to see that reducing your mortgage term will increase your monthly payments while reducing your overall interest.

As you can see, a mortgage that is 15 years rather than 25 years could help you save nearly £63,000 over the long term.

Talk to one of our mortgage advisors better understand the term that may suit you.

What is the minimum income required to obtain a mortgage of £350k?

Although rules vary among lenders regarding income requirements, many lenders use income multiples to help them get started. The maximum amount you can borrow is usually limited to 4x your annual income.

This would require you to earn a minimum of £87.500 per year in order to qualify for a £350,000 mortgage. This will be your combined income if you apply for a joint mortgage.

Lenders don’t judge income by itself. They are really interested in your ability to pay the bills. This is also known as your “debt-to-income ratio” or “DTI”. It is calculated by multiplying your monthly outgoings with your monthly income. The result is expressed in percentages.

A healthy DTI is defined as a percentage below 36%. However, lenders will likely stress how your ability to pay the mortgage may affect your affordability.

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What income is required to get a mortgage of £350k?

There is no single answer that will work for everyone. It all depends on your annual salary, how you earn it, and other factors such as your credit history and the size of your deposit are also important.

To give you an idea, however, most mortgage lenders limit their lending on the basis of a multiple to the customer’s income. Many lenders offer 4-4.5x salaries, with some offering x5 and others offering x6.

To get a mortgage for £350,000, applicants must have a combined income of at least £87,000.

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What is the minimum deposit required to get a £350k mortgage loan?

The loan-to-value ratio, or ‘LTV’, is the amount you wish to borrow relative to the property.

If you make a deposit of £35,000 for a property worth £350,000, you will need to borrow an additional 90%. This means your LTV ratio will be 90%.

The minimum deposit required to obtain a mortgage in the UK is 5% (for a 95% LTV). For a £350k mortgage payment, you will need to raise at least £17,500. Some lenders may require a minimum of a 10% deposit.

Can I get a £350k loan without having to deposit anything?

No deposit mortgages are usually restricted to family arrangements where someone (your parents or grandparents for example) provides the deposit. Typically, the deposit is either saved, or the lender can take a charge against their property as security. After a set period (often three to five years), you make monthly payments. The lender then returns your deposit to you.

If a close family member or friend has signed a formal agreement to be a guarantor, some mortgage providers may allow you to borrow 100% of the property’s worth. Learn more about guarantor mortgages.

If I am self-employed, can I get a £350,000 loan?

Lenders may consider the self-employed riskier and will not lend to you if your monthly earnings fluctuate. They may ask for a higher deposit or require more stringent criteria regarding affordability and adverse credit.

Our experts can help you locate a suitable lender, provided you have proof of your income and other relevant circumstances.

We can also point you to specialist self-employed mortgage providers.

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What effect will my age have on my ability to obtain a mortgage for £350,000?

It is not easy to obtain a mortgage if you are 55+ and nearing retirement. Many lenders have established lending limits or limited the length of mortgage terms to help alleviate this problem.

This is often due to the effect on your affordability if you don’t have a regular income and/or older borrowers are more likely to be in poor health and not to live the 25-year term.

What effect does bad credit have on how much deposit I can put down?

Usually, lenders will view you as a greater risk if your credit is poor. The more adverse your credit score, the greater the risk to the lender.

All lenders are different so that each lender will give more importance to certain credit factors.

Certain issues are more important than others.

Some lenders will accept a smaller deposit if you have low credit scores and a history of late payments. If your credit history contains something more serious, such as a recent bankruptcy and repossession, you might find lenders asking for a higher deposit.

In an ideal world, all borrowers should have good credit scores and clear credit history. We all know this is not possible. Many of us have been guilty of late payments.

What about the more serious types? Bankruptcy CCJs or IVAs are major issues that can make it difficult to get a loan. However, some lenders will still consider you, even if this happened a while ago.

Working with a broker such as Loan Corp is a good idea if you have poor credit.

Our advisors will help you determine which lenders are most likely and under what circumstances to accept your application. This saves time and reduces the chance of your application being rejected.

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Can I get a £350k mortgage buy-to-let?

It may be possible, though the rules for mortgages are slightly different.

Most lenders require higher deposits for BTL. It is common to accept 25%, but some lenders will accept 15% if you meet other criteria.

Many lenders require that you earn at least £25k annually. However, lenders will often base their calculations on your projected rental income. They’ll usually want to see rental income being 125-130% of your mortgage payments.

Other restrictions may apply. You may not be eligible for a BTL mortgage unless you own your own home and you have lived there for at least six months. However, some specialist lenders may be able to offer a BTL mortgage to a first-time buyer.

The majority of mortgages for buy-to-let are interest-only. Look at this section to see how monthly costs might look for a £350k mortgage.

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Can I get an interest-only £350,000 mortgage?

Many lenders will offer mortgages on an interest-only repayment basis if you can show them a credible mortgage repayment plan (i.e. you can also show how you will pay off the entire mortgage balance at the end.)

Lenders will offer different terms for interest-only loans. A larger deposit is expected – lenders may only allow 75% LTV, while others will offer 80% or even 85%.

Many people prefer fixed rate interest-only mortgages because the monthly payments are lower. You’re only paying interest and not capital.

Can I get a £350k-secured loan?

It’s possible. Secured loans (also known as ‘homeowner loans’ and second-charge mortgages), allow homeowners to raise large amounts of capital without remortgaging your home.

Actually, a secured loan for £350k can be easier than a mortgage. Because the loan is secured against your home, it is considered less risky. Secured loans can offer lower repayment rates than residential mortgages and are often easier to arrange and pay off.

While some eligibility requirements exist, factors like non-standard income and adverse credit are not as important. LTV is more flexible than others.

Where can I find a £350k calculator for a mortgage?

As a guide, we have a mortgage repayment calculator.

A calculator cannot give you an exact picture of all the available options. Because lenders consider many factors, including your credit history and income, this is why a calculator can only give you a general idea of what the lender will accept.

Talk to one of our expert brokers for the best understanding.

 

Check your £350k mortgage eligibility

An advisor can help you determine your eligibility if you have already chosen a mortgage provider. They will also be able to compare your options to determine if you could find a better lender. It’s quick and easy and won’t affect your credit score.

Our goal is to find you a mortgage deal that suits your needs and saves you money.

Take a look at other mortgage repayment examples:

Need some help with your £350,000 mortgage?

You can still get a mortgage on £350k if you aren’t sure or have questions.

Relax, and let us find the right broker for you. We do not charge any fees, and you are under no obligation to improve your credit rating.

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