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A £900k mortgage is large by most people’s standards, so it’s advisable to seek advice and do some calculations before you get started. Here you will learn how to work out the repayments on a mortgage of this size and get the best deal.
How much are the repayments on a £900k mortgage?
Your exact repayment will vary depending on the interest rate, term length and other factors, but to give a representative example, the average repayments on a £900,000 mortgage are around £5,002 per month and £1,425,159 overall across a standard 25-year term.
These example calculations are based on a capital repayment mortgage with an interest rate of 4%, which is roughly average for the UK market at the time of writing (December 2024).
For large mortgage amounts, such as £900,000, it is highly recommended that you speak to a mortgage advisor before you apply to make sure you get the best deal.
Calculate your mortgage repayments
You can see for yourself how the repayments on a £900,000 mortgage can vary across different interest rates, terms and repayment types by using our calculator below:
Enter these details into the relevant input fields and you’ll have your results in no time.
Now that you have crunched some numbers, the next step on your should be to compare rates and deal and speak to a broker. You can do all of that for free on Teito and secure an agreement in principle in minutes - get started here.
Factors that will affect your repayments
Here we will explore the factors that can make the repayments on a £900k mortgage differ, namely the interest rate, term length and the mortgage’s repayment type.
Interest rate
The interest rate you are offered will depend on the amount of deposit you have (the more you have, the better) and the overall strength of your mortgage application. Different product types, such as fixed-rate and tracker rate mortgages, have specific rates too.
The table below shows how the repayments on a £900,000 capital repayment mortgage taken over a term of 25 years can vary across different rate bands.
|
Mortgage Amount |
Interest Rate |
Monthly Repayments |
Overall Repayment |
|
£900k |
3.5% |
£4,506 |
£1,351,684 |
|
£900k |
4% |
£4,751 |
£1,425,159 |
|
£900k |
4.5% |
£4,447 |
£1,333,998 |
|
£900k |
5% |
£5,261 |
£1,578,393 |
|
£900k |
5.5% |
£5,527 |
£1,658,036 |
|
£900k |
6% |
£5,799 |
£1,739,614 |
Term length
The average mortgage term length in the UK is 25 years but longer and shorter options are available. A longer term means paying less each month but more overall due to having extra interest instalments to pay. The table below shows how this works for a £900k mortgage taken out on a capital repayment basis with an interest rate of 4.5%.
|
Mortgage Amount |
Term Length |
Monthly Repayments |
Overall Repayment |
|
£900k |
10 years |
£9,112 |
£1,093,447 |
|
£900k |
15 years |
£6,657 |
£1,198,294 |
|
£900k |
20 years |
£5,454 |
£1,308,918 |
|
£900k |
25 years |
£4,751 |
£1,425,159 |
|
£900k |
30 years |
£4,297 |
£1,546,826 |
|
£900k |
35 years |
£3,985 |
£1,673,689 |
|
£900k |
40 years |
£3,761 |
£1,805,494 |
The repayment type
The most common alternative to a capital repayment mortgage is an interest-only agreement, where the borrower only makes interest payments each month and settles the mortgage debt at the end of the term with a pre-agreed repayment vehicle.
The table below shows what the repayments will look like on a £900,000 interest-only mortgage, taken over a 25-year term, across different interest rates.
|
Mortgage Amount |
Interest Rate |
Interest-only Payments (Monthly) |
Overall Repayment |
|
£900k |
3.5% |
£2,625 |
£1,687,500 |
|
£900k |
4% |
£3,000 |
£1,800,000 |
|
£900k |
4.5% |
£3,375 |
£1,912,500 |
|
£900k |
5% |
£3,750 |
£2,025,000 |
|
£900k |
5.5% |
£4,125 |
£2,137,500 |
|
£900k |
6% |
£4,500 |
£2,250,000 |
Compare repayments on similar mortgage amounts
If £900,000 is just a ballpark borrowing amount for you, you might want to see how the repayments will vary if you were to take out a mortgage for more or less than this.
The table below shows the repayments for similar amounts in this region, based on a capital repayment agreement with a 4% interest rate and a 25-year term.
|
Mortgage Amount |
Monthly Repayments |
Overall Repayments |
|
£850k |
£4,487 |
£1,345,984 |
|
£875k |
£4,619 |
£1,385,572 |
|
£900k |
£4,751 |
£1,425,159 |
|
£925k |
£4,882 |
£1,464,747 |
|
£950k |
£5,014 |
£1,504,335 |
|
£1 million |
£5,278 |
£1,583,511 |
Calculations all done? Here are your options now...
Other costs and fees
If you are applying for a £900k mortgage, there may be other costs and fees you should know about. They typically 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 reduce your mortgage repayments
£900,000 is a substantial amount of mortgage and the repayments can be high. The tips below can potentially help you keep them to a minimum where possible:
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 £900k 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 £900k mortgage
After running your calculations, the next step on your mortgage journey should be to compare rates on £900k mortgages and apply for an agreement in principle. You can do this for free on Teito and will receive expert guidance from a broker as part of the service.
Here are just some of the reasons why you should source your mortgage on Teito:
- You can access the latest rates for FREE in seconds
- Our brokers specialise in high value mortgages
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to compare £900k mortgage rates and take advantage of a free, no-obligation chat with a broker who specialises in large mortgages? Get started here.
FAQs
You would need income of around £200,000 per year to afford a £900,000 mortgage as most mortgage lenders won’t let you borrow more than 4.5 times your annual salary. If it’s a joint or multi-person application, all of the applicants’ salaries can be combined.
If the combined salaries of all applicants falls short of this amount, you may be able to find a lender who caps their lending based on 5-6 times income, or lets you declare supplemental sources of income. The best way to find one of these lenders is through a broker.
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.