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Mortgage Advisor & Director
If you need a £200k mortgage or have been offered one, it's helpful to understand how much it will cost month and overall. Here, you’ll learn how to calculate this, what factors will impact the cost and how we can help reduce them.
How much are the repayments on a £200,000 mortgage?
At the time of writing (December 2024), average mortgage interest rates are around the 4% mark and typical mortgage terms are 25 years. With these variables in mind, the repayments on a £200,000 mortgage will be roughly £1,056 per month and £316,702 overall.
Your exact repayments will, however, vary depending on the interest rate you qualify for, the length of the mortgage agreement and the type of mortgage you choose.
How to calculate your repayments
You can work out the payments on a £200,000 mortgage by using our calculator below. You can input different mortgage amounts, interest rates and terms lengths to see how the repayments compare, as well as convert the results to interest-only.
Now that you’ve run some calculations, it’s time to choose your mortgage. You can do this on Teito for free and access expert broker support too - get started here.
Factors that will determine your mortgage payments
If you are borrowing £200,000 on a mortgage, the exact amount you will repay will depend on a range of factors. We have broken down the main ones below:
Term length
Although the average mortgage term length is 25 years, it is often possible to take a longer or shorter term agreement than this. Longer mortgages typically come with lower monthly repayments but you will pay more in interest overall due to having more instalments to pay.
The table below reveals how the cost of a £200k mortgage can vary across different terms. We have used an interest rate of 4%, average at the time of writing, for these calculations and made the assumption that the mortgage in question is a capital repayment agreement.
|
Mortgage Amount |
Term Length |
Monthly Repayments |
Overall Repayment |
| £200k | 10 years | £2,025 | £242,988 |
|
£200k |
15 years |
£1,479 |
£266,288 |
|
£200k |
20 years |
£1,212 |
£290,871 |
|
£200k |
25 years |
£1,056 |
£316,702 |
|
£200k |
30 years |
£955 |
£343,739 |
|
£200k |
35 years |
£886 |
£371,931 |
|
£200k |
40 years |
£836 |
£401,221 |
Interest rate
The rate you will be offered will obviously play a big part in how much you end up repaying on your £200,000 mortgage. The table below shows how the monthly amount can vary across different interest rates, based on a standard term length of 25 years.
|
Mortgage Amount |
Interest Rate |
Monthly Repayments |
Overall Repayment |
|
£200k |
3.5% |
£1,001 |
£300,374 |
|
£200k |
4% |
£1,056 |
£316,702 |
|
£200k |
4.5% |
£1,112 |
£333,499 |
|
£200k |
5% |
£1,169 |
£350,754 |
|
£200k |
5.5% |
£1,228 |
£368,452 |
|
£200k |
6% |
£1,289 |
£386,581 |
Mortgage type
Your mortgage’s repayment type will also have a bearing on the exact amount you will pay each month. The most common type is a capital repayment mortgage where you repay some of the debt plus interest each month, but an interest-only mortgage is an alternative.
With an interest-only mortgage, you only have to repay the interest each month and the mortgage debt itself has to be settled at the end of the term via a repayment vehicle.
The table below reveals how much a £200,000 interest-only mortgage will cost each month and overall, based on different interest rates and a standard term length of 25 years.
|
Mortgage Amount |
Interest Rate |
Interest-only Payments (Monthly) |
Overall Repayment |
|
£200k |
3.5% |
£583 |
£375,000 |
|
£200k |
4% |
£667 |
£400,000 |
|
£200k |
4.5% |
£1,112 |
£333,499 |
|
£200k |
5% |
£1,169 |
£350,754 |
|
£200k |
5.5% |
£1,228 |
£368,452 |
|
£200k |
6% |
£1,289 |
£386,581 |
In addition to the repayment type, the product type will also affect how much your repayments amount to. A £200k agreement taken on a fixed-rate basis will have an introductory interest rate locked in for a set period, while a variable rate mortgage - such as a tracker agreement - can come with different repayments from one time period to the next.
Read more about fixed-rate and tracker mortgages in our standalone guides.
Comparing different mortgage amounts
If £200,000 is merely a ballpark amount for your mortgage, the table below shows how your repayments might vary if you were to borrow slightly more or less than this figure. These calculations are based on a capital and repayment agreement with the typical interest rate of 4% and a term length of 25 years.
|
Mortgage Amount |
Monthly Repayments |
Overall Repayments |
|
£190k |
£1,003 |
£300,867 |
|
£200k |
£1,056 |
£316,702 |
|
£210k |
£1,108 |
£332,537 |
|
£1,161 |
£348,372 |
|
|
£230k |
£1,214 |
£364,207 |
|
£240k |
£1,267 |
£380,043 |
Calculations all done? Here are your options now
Other costs to factor in
To get a clearer idea of the overall cost involved with taking out a £200,00 mortgage, you will need to factor in all additional fees, including:
- 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 we can help you reduce your mortgage costs
Our mortgage brokers can potentially help you secure lower payments on your £200,000 mortgage by arranging a lower interest rate for you and making sure you get the best deal.
The ideal mortgage for you is one with a product type and repayment type that fits your needs and circumstances, while the right term length will also be key.
Our brokers have whole-of-market access and can match you with the lender who is best placed to offer you a favourable rate on the terms that you need.
What to do next
Hopefully our calculator tool and tables have given you a clearer idea about what the repayments on your £200k mortgage will look like, so it’s time to choose your mortgage deal.
Through Teito’s service you can source your own mortgage and secure an interest rate in no time, and we have whole-of-market brokers on hand to offer support if you need it and make sure you have selected the right mortgage for your needs and requirements.
Here are just some of the benefits of sourcing your mortgage through us:
- It takes just minutes to secure an agreement in principle
- Exclusive rates and deals available
- Expert whole-of-market brokers on hand to help
- We are five-star rated on leading review websites
Ready to source your mortgage and access expert advice today? Get started here and kick things off with a free, no-obligation chat with a mortgage specialist.
FAQs
Given than most mortgage lenders cap the maximum amount you can borrow at 4-4.5 times your annual salary, all of the mortgage applicants will typically need a combined income of between £44,000 and £50,000 to qualify for a mortgage of £200,000. If you earn less that this, don't panic. There are mortgage providers who cap their maximum borrowing at 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.