Monthly repayments on £400,000 over 25 years
| Interest rate | Monthly repayment | Total interest over 25 years | Total repaid |
|---|---|---|---|
| 3.5% | £2,002 | £200,748 | £600,748 |
| 4% | £2,111 | £233,404 | £633,404 |
| 4.5% | £2,223 | £266,999 | £666,999 |
| 5% | £2,338 | £301,508 | £701,508 |
| 5.5% | £2,456 | £336,905 | £736,905 |
| 6% | £2,577 | £373,162 | £773,162 |
Each percentage point on the rate moves the payment by about £230 a month on £400,000. A fixed-rate deal holds the figure for its term and then moves to the lender's standard variable rate or a new deal, so the row for the new rate against your remaining balance is the number to plan for at remortgage. The mortgage repayment calculator gives the figure for any loan, rate and term with the split between interest and capital each year.
How the term changes the cost at 4.5%
| Term | Monthly repayment | Total interest | Total repaid |
|---|---|---|---|
| 15 years | £3,060 | £150,795 | £550,795 |
| 20 years | £2,531 | £207,343 | £607,343 |
| 25 years | £2,223 | £266,999 | £666,999 |
| 30 years | £2,027 | £329,627 | £729,627 |
| 35 years | £1,893 | £395,071 | £795,071 |
Stretching from 25 to 35 years cuts the payment from £2,223 to £1,893 but adds £128,072 of interest over the life of the loan. Overpaying £100 a month on the 25-year loan at 4.5% clears it 22 months early and saves £23,068; the overpayment calculator runs any amount, and our guide on mortgage repayment costs explains the trade-offs.
Interest only
On an interest-only basis £400,000 at 4.5% costs £1,500 a month, £723 less than the repayment figure, and the full £400,000 is still owed at the end of the term. Lenders restrict interest-only lending to borrowers with a credible repayment plan and usually to lower loan-to-value ratios; the interest-only calculator compares the two structures over any term.
The income and deposit that usually go with £400,000
| Household income at four and a half times | £88,889 |
| Household income at four times | £100,000 |
| Household income at five and a half times | £72,727 |
| Deposit at 90% loan to value, home worth £444,444 | £44,444 |
| Deposit at 85% loan to value, home worth £470,588 | £70,588 |
| Deposit at 75% loan to value, home worth £533,333 | £133,333 |
Lenders cap borrowing at a multiple of income after existing commitments and stress test the payment at a higher rate, so the income figures are a guide to the range rather than an offer. The affordability calculator applies commitments and a stressed rate, and the deposit guide covers what a first-time buyer needs alongside the loan.