Head of Content
Mortgage Advisor & Director
We have put together this guide to help you work out the repayments on a £1 million mortgage. Here, you will find a calculator tool, example calculation tables and key information about applying for a mortgage of this amount.
How much are the repayments on a £1 million mortgage?
The average monthly repayment on a £1,000,000 mortgage is around £5,278. This is based on a capital repayment mortgage with an interest rate of 4% and a term length of 25 years, a representative example of a typical mortgage deal at the time of writing (December 2024).
Paying this amount consistently over a 25-year mortgage term would mean repaying a total of £1,583,511 by the end of the agreement.
Although the above is a relevant example, the exact amount you will pay each month and overall will vary depending on the rate you qualify for, the term length and mortgage type.
Calculate your mortgage repayments
You can work out the repayments on a £1 million mortgage based on different interest rates, terms and repayment types by using our calculator below. It has been set to calculate this amount by default, but can be manually changed if you wish to compare different amounts.
Now that you have run some calculations, you can compare rates on £1m mortgages from across the market for free and choose the deal you want - get started here.
Can your brokers help with £1 million mortgages?
Yes. As part of the service you will be offered a free, no-obligation chat with a broker who specialises in £1 million mortgages when you source a deal through us. Since this is a substantial mortgage amount, seeking professional advice is highly recommended.
Here are some of the benefits of seeking advice from one of our brokers.
- They are experts in large mortgages and can offer bespoke guidance
- They often have access to exclusive deals for mortgages of this size
- We have access to the whole of the market
- Our brokers will guide you through your application
Factors that will affect your repayments
The main factors that will influence the repayments on a £1,000,000 mortgage are the interest rate, term length and repayment type. We will now explore each of these variables in detail, complete with example calculation tables for added context.
Interest rates
The mortgage rate you qualify for will be determined by the amount of deposit you have (the more, the better) and overall strength of your application. Different mortgage product types such as fixed-rate and tracker deals also have various different interest rates.
This table shows how the repayments on a £1 million mortgage can vary depending on the rate. These calculations are based on a capital repayment mortgage with a 25-year term.
|
Mortgage Amount |
Interest Rate |
Monthly Repayments |
Overall Repayment |
|
£1 million |
3.5% |
£5,006 |
£1,501,871 |
|
£1 million |
4% |
£5,278 |
£1,583,511 |
|
£1 million |
4.5% |
£5,558 |
£1,667,497 |
|
£1 million |
5% |
£5,846 |
£1,753,770 |
|
£1 million |
5.5% |
£6,141 |
£1,842,262 |
|
£1 million |
6% |
£6,443 |
£1,932,904 |
Term lengths
Taking out a £1 million mortgage over a longer term than the standard 25 years means lower monthly repayments but paying more overall. Shorter terms mean paying more each month but less overall, paying off your debt quicker and owning your home outright.
The table below shows how the cost of a £1 million mortgage can vary across different term lengths, with examples based on a capital repayment mortgage with a 4% rate.
|
Mortgage Amount |
Term Length |
Monthly Repayments |
Overall Repayment |
|
£1 million |
10 years |
£10,125 |
£1,214,942 |
|
£1 million |
15 years |
£7,397 |
£1,331,438 |
|
£1 million |
20 years |
£6,060 |
£1,454,353 |
|
£1 million |
25 years |
£5,278 |
£1,583,511 |
|
£1 million |
30 years |
£4,774 |
£1,718,695 |
|
£1 million |
35 years |
£4,428 |
£1,859,654 |
|
£1 million |
40 years |
£4,179 |
£2,006,105 |
Repayment type
Taking out a £1,000,000 mortgage on an interest-only basis rather than the most common capital repayment would mean you only have to pay off the interest each month.
The table below shows how much the repayments would be on a £1 million interest-only mortgage across different interest rates and a standard term length of 25 years.
|
Mortgage Amount |
Interest Rate |
Interest-only Payments (Monthly) |
Overall Repayment |
|
£1 million |
3.5% |
£2,917 |
£1,875,000 |
|
£1 million |
4% |
£3,333 |
£2,000,000 |
|
£1 million |
4.5% |
£3,750 |
£2,125,000 |
|
£1 million |
5% |
£4,167 |
£2,250,000 |
|
£1 million |
5.5% |
£4,583 |
£2,375,000 |
|
£1 million |
6% |
£5,000 |
£2,500,000 |
Multi-million pound mortgage repayments
Below you can get a rough idea of how much various different multi-million pound mortgage amounts would cost you each month and overall. These example calculations are for a capital repayment mortgage with a 4% interest rate and a 25-year term.
|
Mortgage Amount |
Monthly Repayments |
Overall Repayments |
|
£1 million |
£5,846 |
£1,583,511 |
|
£2 million |
£10,557 |
£3,167,021 |
|
£3 million |
£15,835 |
£4,750,532 |
|
£4 million |
£21,113 |
£6,334,042 |
|
£5 million |
£26,392 |
£7,917,553 |
|
£6 million |
£31,670 |
£9,501,063 |
Speaking to a mortgage broker is essential if you are applying for a mortgage this high as there are exclusive deals for high net worth deals, and often, the maximum borrowing caps at high street lenders might get in your way - get in touch to speak to an expert in this area.
Calculations all done? Here are your options now...
Other costs to consider
As well as your mortgage repayments, there will almost be additional fees to factor into your budget. They include:
- Product fees: Can range between nothing and £2,000. Fee-free deals often come with higher rates, but the fee itself can sometimes be added to the mortgage.
- Valuation fee: Some lenders will expect you to foot the cost of having the property you’re buying valued, and this can set you back between £250-1,500.
- Legal fees: Can range from a few hundred to several thousand pounds.
- Stamp duty: See our stamp duty guide to find out how much your bill will be and whether you qualify for exemption.
- Admin costs: This includes the booking fee, telegraphic transfer fee and the account fee. All in all, admin costs for a mortgage application can cost around £1,000.
Tips to help you reduce your mortgage payments
The repayments on a £1,000,000 mortgage can be high by anyone’s standards, so take a read through the tips below to learn about ways to potentially reduce yours.
Factor in mortgage fees: The overall cost of your mortgage is what’s important. There’s no point taking a deal without a product fee if that means paying more in the long run because the rate attached is much higher. Deals with a fee attached generally have lower rates, so be sure to work out the overall cost.
Be aware of market conditions: This will help you get the best deal in the long run. It’s important to research which direction UK interest rates are expected to head in. If they are forecast to rise in the long term, locking into a fixed rate for the long term might be a better option to protect yourself from repayment increases.
Improve your credit position: This can help you qualify for a superior interest rate and therefore lower monthly repayments. You can download your credit reports for free by starting a free trial with Checkmyfile. Reviewing them and requesting for outdated/inaccurate information to be removed can strengthen your position.
Speak to a mortgage broker: The right mortgage broker can ensure you get the best £1 million mortgage deal available, with their knowledge, experience and lender contacts. This could mean an exclusive rate, and lower repayments as a result.
Applying for a £1 million mortgage
Doing your calculations was the first step on your journey. Next, you can compare the latest rates and deals available for £1 million mortgages for free on Teito, and access support from a broker who specialises in large mortgages, if you need help choosing the right option.
Here are just some of the reasons our customers source their mortgage through us:
- You can access rates and deals for FREE in seconds
- Our brokers specialise in large mortgages and can secure exclusive deals
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to compare rates and take advantage of a free, no-obligation chat with a broker who specialises in £1 million mortgages? Get started here.
FAQs
Your total household income would need to be around £222,225 per year as most mortgage lenders cap your maximum borrowing at 4.5 times salary. Those earning less than this might still have options as there are lenders who offer mortgages based on 5-6 times salary, and also mortgage providers who will allow you to declare supplemental income too.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.