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Mortgage Advisor & Director
While £80,000 is a relatively small mortgage loan, it’s possible to borrow this amount, but you should research the costs involved before you get started. In this guide, you will learn how to calculate the repayments on a mortgage of this size and find out how to get the best deal with the time comes to apply.
How much would an £80,000 mortgage cost per month?
At the time of writing (December 2024), the average monthly repayments on an £80,000 mortgage would be around £422. This is based on a capital repayment agreement with a 4% interest rate and 25-year term, a typical mortgage deal in the current UK market.
Repaying this amount on your mortgage over a period of 25 years would mean that you will have repaid a grand total of £126,681 by the end of the term.
Your exact mortgage repayments may vary from the example shown above, as factors such as the type of mortgage you take out, the interest rate you qualify for and the term length you choose can all have a significant impact on the cost of an £80,000 mortgage.
Calculate your monthly repayments
You can use our calculator below to work out the potential repayments on your £80k mortgage. Simply enter an interest rate, term length and the desired repayment type then hit 'calculate' to get some quick results.
Now that you have run some calculations, you can compare £80k mortgage rates for free with Teito. Get started here to browse deals from across the market, choose one that fits your needs, and consult with a broker to ensure everything goes smoothly.
Factors that determine your mortgage repayments
The main factors that will impact the amount you will repay on an £80,000 mortgage are the mortgage type, the term length and the interest rate. In this section we will explore exactly how these factors can shape mortgage costs, complete with example calculations.
Interest rates
This table shows how much an £80k mortgage costs each month and overall across different interest rates. These calculations are for a capital repayment mortgage taken over 25 years.
|
Mortgage Amount |
Interest Rate |
Monthly Repayments |
Overall Repayment |
|
£80k |
3.5% |
£400 |
£120,150 |
|
£80k |
4% |
£422 |
£126,681 |
|
£80k |
4.5% |
£445 |
£133,400 |
|
£80k |
5% |
£468 |
£140,302 |
|
£80k |
5.5% |
£491 |
£147,381 |
|
£80k |
6% |
£515 |
£154,632 |
The interest rate you qualify for will depend on the loan-to-value (LTV) ratio, the overall strength of your application, and the product type you choose.
Different types of mortgages - such as fixed rate and tracker agreements - have varying rates depending on how long you lock in for and whether you pay a product fee.
Term length
The length of the term that you take your £80k mortgage over will also shape the monthly payments. The table below shows how much a mortgage of this amount will cost taken over different terms. These results are for a capital repayment mortgage with a 4% rate.
|
Mortgage Amount |
Term Length |
Monthly Repayments |
Overall Repayment |
| £80k | 10 years | £810 | £97,195 |
|
£80k |
15 years |
£592 |
£106,515 |
|
£80k |
20 years |
£485 |
£116,348 |
|
£80k |
25 years |
£422 |
£126,681 |
|
£80k |
30 years |
£382 |
£137,496 |
|
£80k |
35 years |
£354 |
£148,772 |
|
£80k |
40 years |
£334 |
£160,488 |
Mortgages taken out over a longer period have lower monthly payments, but the amount you will repay overall is higher as there will be additional interest instalments to pay for borrowers who choose to max out the term.
Repayment type
Different product types such as fixed and variable-rate mortgages have their own rates, but the mortgage’s repayment type will also affect your monthly and overall repayments.
Most residential mortgages in the UK are capital repayment but some borrowers have the option to choose interest-only as an alternative. The table below shows example repayments for an £80k interest-only mortgage with a 4% interest rate, taken over 25 years.
|
Mortgage Amount |
Interest Rate |
Interest-only Payments (Monthly) |
Overall Repayment |
|
£80k |
3.5% |
£233 |
£150,000 |
|
£80k |
4% |
£267 |
£160,000 |
|
£80k |
4.5% |
£300 |
£170,000 |
|
£80k |
5% |
£333 |
£180,000 |
|
£80k |
5.5% |
£367 |
£190,000 |
|
£80k |
6% |
£400 |
£200,000 |
Changing the mortgage amount
If £80,000 is a ballpark figure for the mortgage amount you need, you might be wondering what your repayments will look like if you were to borrow more or less. The table below shows example payments for similar amounts in this range, borrowed on a capital repayment basis with an interest rate of 4% and a term length of 25 years.
|
Mortgage Amount |
Monthly Repayments |
Overall Repayments |
|
£70k |
£369 |
£110,846 |
|
£80k |
£422 |
£126,681 |
|
£90k |
£475 |
£142,516 |
|
£528 |
£158,351 |
|
|
£110k |
£581 |
£174,186 |
|
£120k |
£633 |
£190,021 |
Calculations all done? Here are your options now...
Other costs to factor in
The monthly repayments aren’t the only cost involved in taking out an £80,000 mortgage. Below you will find a breakdown of the other expenses to factor into your calculations.
-
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.
-
Booking fee: An admin cost as part of the mortgage application process. It can range between £99-250 and is sometimes rolled into the product fee.
-
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.
-
Telegraphic transfer fee: A small fee to cover the cost of transferring your mortgage funds to your solicitor so the deal can be closed, usually between £25 and £50.
-
Account fee: Another admin cost, usually between £100 and £300, to cover the set up, maintenance and eventual closure of your mortgage account held by the lender.
-
Stamp duty: See out stamp duty guide to find out how much your bill will be and whether you qualify for exemption
Tips to help you reduce your payments
Although £80k is a relatively small mortgage amount, you will still want to keep your repayments as low as possible. The following tips can help you do that.
- Put down a larger deposit: Not only would you need to borrow less, putting down extra deposit can reduce the loan-to-value (LTV) ratio and help you qualify for a lower rate.
- Improve your credit situation: Waiting for any bad credit to disappear from your credit files, paying off debts you’re in a position to clear, and paying any existing bills and credit agreements on time ahead of your application can also help you land a lower rate.
- Consider a longer mortgage term: This will reduce your monthly payments in the short term (on a capital repayment agreement), but you will be paying more in interest overall.
- Consider interest-only: Interest-only mortgages have lower monthly payments but you will need a repayment vehicle to settle the debt at the end of the term. Be sure to seek professional advice from a qualified mortgage broker before choosing this option.
Lee Trett - Mortgage Advisor & Director
How to apply for an £80,000 mortgage
Now that you have worked out the costs involved, it is time to apply for your £80,000 mortgage. You can get the ball rolling by comparing rates and deals on Teito for free.
You can browse deals from lenders across the market and choose one you want in real time. Once you have made your selection, one of our mortgage brokers will contact you for a free, no-obligation chat to make sure you are getting the best possible deal and guide you through the application process - get started here.
FAQs
Most mortgage providers cap their maximum lending at 4.5 times salary. With this in mind, all of the mortgage applicants would need a combined income of £17,778 to qualify for a mortgage of £80,000. If you earn less than this, it might still be possible to get approved as a smaller number of lenders use 5-6 times annual income to determine maximum borrowing.
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.