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A mortgage of £700,000 is a relatively high debt, so it pays to be prepared if you are applying for one. Here, you will learn how to calculate the repayments on a mortgage of this amount, and how to get started with your application.
What are the average monthly repayments on a £700k mortgage?
The average monthly repayments on a £700,000 mortgage are roughly £3,695. This example figure is based on a capital repayment mortgage of this amount with a term length of 25 years and a rate of 4%, which is representative of the UK market in recent months.
If you were to pay this amount on your mortgage for the duration of the term, you will have repaid a total of £1,108,457 by the end of the agreement.
Your exact mortgage payments will vary depending on the interest rate you qualify for, the term length you choose and the product type you opt for. It’s also worth noting that mortgage rates, at the time of writing (December 2024) are in flux.
Calculate your mortgage repayments
You can use our calculator below to work out the repayments on your £700k mortgage. Simply enter a term length, interest rate and repayment type and this online tool will serve you with some quick results.
Now that you have run some calculations, you can get the ball rolling on your application by comparing rates and deals for free on Teito - get started here.
What factors affect how much your repayments are?
The exact repayments on a £700k mortgage will be determined by the following factors:
- The interest rate
- The term length
- The mortgage’s product and repayment type
We will now explore these variables in detail, with relevant example calculations, so you can understand exactly how they could shape the cost of your £700,000 mortgage.
Interest rates
The interest rate you qualify for will be based on the loan-to-value (LTV) ratio (in other words, how much deposit you have), and the overall strength of your application.
The table below shows how different interest rates affect the repayments on a £700,000 capital repayment mortgage taken over a term of 25 years.
|
Mortgage Amount |
Interest Rate |
Monthly Repayments |
Overall Repayment |
|
£700k |
3.5% |
£3,504 |
£1,051,309 |
|
£700k |
4% |
£3,695 |
£1,108,457 |
|
£700k |
4.5% |
£3,891 |
£1,167,248 |
|
£700k |
5% |
£4,092 |
£1,227,639 |
|
£700k |
5.5% |
£4,299 |
£1,289,584 |
|
£700k |
6% |
£4,510 |
£1,353,033 |
Mortgage rates are in decline - use our free service to find out what’s available in real time
Term length
The average term length on the UK mortgage is 25 years but most lenders offer longer or shorter agreements than this. Stretching a £700k mortgage over a longer term would mean paying less each month, but more overall due to the greater number of interest instalments.
The table below shows the impact of term length on the cost of a £700k mortgage. These calculations are based on a capital repayment mortgage with a 5% rate.
|
Mortgage Amount |
Term Length |
Monthly Repayments |
Overall Repayment |
| £700k | 10 years | £7,087 | £850,459 |
|
£700k |
15 years |
£5,178 |
£932,007 |
|
£700k |
20 years |
£4,242 |
£1,018,047 |
|
£700k |
25 years |
£3,695 |
£1,108,457 |
|
£700k |
30 years |
£3,342 |
£1,203,087 |
|
£700k |
35 years |
£3,099 |
£1,301,758 |
|
£700k |
40 years |
£2,926 |
£1,404,273 |
Please note that the rate used here (4%) is purely for example purposes. Lower interest rates than this are gradually appearing on the UK market
Mortgage type
Different mortgage product types have their own interest rates. Generally speaking, fixed-rate mortgages with an introductory rates period of five years or longer have some of the lowest rates, while tracker mortgages have the highest, but can be more flexible.
The amount you will repay on your £700k mortgage will also depend on the repayment type you choose. Interest-only is the most common alternative to capital repayment, and you can see what your repayments will look like with this type of agreement below:
|
Mortgage Amount |
Interest Rate |
Interest-only Payments (Monthly) |
Overall Repayment |
|
£700k |
3.5% |
£2,042 |
£1,312,500 |
|
£700k |
4% |
£2,333 |
£1,400,000 |
|
£700k |
4.5% |
£2,625 |
£1,487,500 |
|
£700k |
5% |
£2,917 |
£1,575,000 |
|
£700k |
5.5% |
£3,208 |
£1,662,500 |
|
£700k |
6% |
£3,500 |
£1,750,000 |
The above calculations are based on a 25-year term length
The mortgage amount
One way to lower the repayments on a £700k mortgage would be to put down extra deposit. This would mean you are borrowing less and therefore repaying less. However, some applicants may need to borrow more and £700k is merely a ballpark amount.
The table below shows how your repayments will vary if you were to borrow slightly more or less than £700k, on a capital repayment basis with a rate of 4% over a 25-year term.
|
Mortgage Amount |
Monthly Repayments |
Overall Repayments |
|
£625k |
£3,299 |
£989,694 |
|
£650k |
£3,431 |
£1,029,282 |
|
£675k |
£3,563 |
£1,068,870 |
|
£700k |
£3,695 |
£1,108,457 |
|
£725k |
£3,827 |
£1,148,045 |
|
£750k |
£3,959 |
£1,187,633 |
Calculations all done? Here are your options now...
Other costs to factor in
There likely to be additional fees to pay when taking out a mortgage of £700k. The main ones 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.
How to lower your mortgage repayments
Given that £700,000 is a substantial mortgage amount, the repayments can be steep. With this in mind, we have provided some tips below to help you lower your repayments.
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 £700k mortgage deal available, with their knowledge, experience and lender contacts. This could mean an exclusive rate, and lower repayments as a result.
How to get a £700k mortgage
You can get the ball rolling on your £700,000 mortgage application by comparing rates for free on Teito. When you have chosen a deal you like, you can access support from one of our mortgage brokers and secure your agreement in principle quickly.
Here are just some of the reasons why our customers choose us:
- It takes seconds to access rates from across the market
- Our brokers have access to exclusive deals
- We are 5-star rated on leading review websites
- You can secure your agreement in principle in minutes
Ready to source a £700k mortgage online and take advantage of a free, no-obligation chat with one of our independent mortgage brokers? Get started here.
FAQs
Most mortgage lenders cap your maximum borrowing at 4.5 times annual salary, so all of the mortgage applicants would need a combined salary of just over £155,500 to qualify for a loan of this amount. There are, however, workaround solutions if you don’t earn this much.
Firstly, there are lenders who will let you declare any supplemental income you might have, such as benefits, freelance work or investments. Secondly, there are lenders who will consider letting you borrow based on 5-6 times income, under the right circumstances.
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.