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Mortgage Advisor & Director
If you’re looking to apply for a £300,000 mortgage, one of the first steps is to do your calculations and work out how much it will cost you each month and overall.
In this guide you’ll learn how to do this, as well as get an idea of the factors that can determine your payments, and how to ensure you land an affordable deal.
What are the average repayments on a £300,000 mortgage?
With interest rates at the time of writing (December 2024) hovering around the 4% mark and standard term lengths being 25 years, a mortgage of £300,000 will come with average monthly repayments of £1,584 and borrowers will have repaid £475,053 by the end of the term.
Your exact repayments may vary from this amount and will depend on the interest rate you qualify for, the term length you choose and your mortgage product type.
How to work out your repayments
Use our calculator below to work out the potential repayments on a £300,000 mortgage. You can use this tool to compare different rates and terms, and toggle the switch to convert the results into interest-only calculations.
Now that you have a clearer idea about your repayments, your next step is to choose your mortgage deal. You can compare rates for free in seconds through Teito, and we have expert mortgage brokers on hand to help you out - get started here.
Factors that affect the cost of a £300k mortgage
Here we have broken down the factors that will determine the exact monthly cost of your £300,000 mortgage and provided example calculations to add context.
Term length
The standard mortgage term is 25 years, but the table below shows how taking out a longer or shorter agreement can affect your repayments. These figures are based on a £300k capital repayment mortgage with an interest rate of 4%, which is average at the time of writing.
|
Mortgage Amount |
Term Length |
Monthly Repayments |
Overall Repayment |
| £300k | 10 years | £3,037 | £364,482 |
|
£300k |
15 years |
£2,219 |
£399,431 |
|
£300k |
20 years |
£1,818 |
£436,306 |
|
£300k |
25 years |
£1,584 |
£475,053 |
|
£300k |
30 years |
£1,432 |
£515,609 |
|
£300k |
35 years |
£1,328 |
£557,896 |
|
£300k |
40 years |
£1,254 |
£601,831 |
Note how longer mortgage terms mean lower monthly repayments but are more costly overall. They can suit borrowers who need to keep their monthly expenses low, but it’s important that you choose the term length that is the best fit for your needs and circumstances.
Interest rate
How much a £300k mortgage actually costs will depend on the rate you qualify for, among other factors. Below you can see how the payments for this mortgage amount can vary based on the rate you get - a standard term length of 25 years was used for example purposes.
|
Mortgage Amount |
Interest Rate |
Monthly Repayments |
Overall Repayment |
|
£300k |
3.5% |
£1,502 |
£450,561 |
|
£300k |
4% |
£1,584 |
£475,053 |
|
£300k |
4.5% |
£1,667 |
£500,249 |
|
£300k |
5% |
£1,754 |
£526,131 |
|
£300k |
5.5% |
£1,842 |
£552,679 |
|
£300k |
6% |
£1,933 |
£579,871 |
There are ways to increase your chances of securing a lower interest rate, such as putting down extra deposit and improving your credit score - speak to a broker for more information.
Mortgage type
The example calculations above are for a capital repayment mortgage of £300k, which would involve repaying the debt plus interest each month. The most common alternative to this repayment type is an interest-only mortgage, where only interest payments are mandatory each month and the debt itself is paid at the end of term via a pre-approved repayment vehicle.
The table below shows what the payments would be on a £300,000 interest-only mortgage, based on various different interest rates and a term length of 25 years.
|
Mortgage Amount |
Interest Rate |
Interest-only Payments (Monthly) |
Overall Repayment |
|
£300k |
3.5% |
£875 |
£562,500 |
|
£300k |
4% |
£1,000 |
£600,000 |
|
£300k |
4.5% |
£1,125 |
£637,500 |
|
£300k |
5% |
£1,250 |
£675,000 |
|
£300k |
5.5% |
£1,375 |
£712,500 |
|
£300k |
6% |
£1,500 |
£750,000 |
In addition to the repayment type you choose, the product type you opt for will also determine the rate you will pay on your £300k mortgage each month.
Fixed-rate mortgages come with an introductory rates period where the interest remains the same for a set period (typically 2-5 years) before the borrower is moved onto the lender’s standard variable rate (SVR), which will be more expensive. Borrowers can remortgage to fix back in, but there are circumstances where the flexibility of an SVR is advantageous.
The most common alternative to fixed-rate mortgages is variable-rate agreements, such as tracker mortgages. Tracker mortgages are tied to an external marker, such as the Bank of England’s base rate, and the rate you pay will move up and down with that marker.
Comparing other mortgage amounts around the £300k mark
If £300,000 is a ballpark figure for the amount you are aiming to borrow on your mortgage, take a look at the table below for examples of how your repayments can vary if you were to borrow slightly more or less - these figures are based on a 5% interest rate and 25-year term.
|
Mortgage Amount |
Monthly Repayments |
Overall Repayments |
|
£290k |
£1,531 |
£459,218 |
|
£300k |
£1,584 |
£475,053 |
|
£310k |
£1,636 |
£490,888 |
|
£320k |
£1,689 |
£506,723 |
|
£330k |
£1,742 |
£522,558 |
|
£340k |
£1,795 |
£538,394 |
The above figures are for a capital repayment mortgage
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Additional costs and fees
In addition to your mortgage payments, there are also fees to factor in to the overall cost of your £300k mortgage. 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.
How to reduce your payments on a £300,000 mortgage
Below are a few tips that could help you keep your repayments to a minimum:
- Save up extra deposit: This means reducing the loan-to-value ratio and the risk, which in turn should help you access lower interest rates. The minimum deposit you will need is 5-10% of the property’s value but rates tend to decrease the more you can put down.
- Consider paying a fee: It’s worth seeking professional advice about whether it is worth choosing a mortgage deal that comes with a product fee. No-fee deals tend to have higher rates, so it’s worth weighing up the pros and cons of both options.
- Improve your credit position: You should download your credit reports by accessing a free trial through Checkmyfile. Reviewing them to report inaccuracies or outdated information can improve your credit score and chances of landing a low rate.
- Speak to a mortgage broker: Their knowledge, expertise and lender contacts are often the key to securing a lower rate and choosing the right mortgage term for your needs and circumstances, which can also mean reducing your repayments substantially.
What to do after running your calculations
Now that you’ve worked out how much a £300k mortgage is likely to cost you, your next step should be to compare rates and choose your mortgage deal. You can do this for free through Teito, and we have expert mortgage brokers on hand to provide independent advice.
Here are just some of the benefits of using Teito to source your mortgage:
- All of our brokers are whole-of-market
- You can access exclusive rates and deals
- We are 5-star rated on leading review websites
- You could secure an agreement in principle in minutes
Ready to source your mortgage and get expert advice? Make an enquiry to view rates and deals, and set up a free, no-obligation chat with a mortgage advisor today.
FAQs
Generally speaking all of the mortgage applicants would need to be earning around £66,000 to £75,000 to afford a mortgage of £300,000. This is because most mortgage lenders cap their maximum loan sizes at 4-4.5 times annual salary.
If your household income is less than this, you might still have options as there are mortgage providers who use higher income multiples, such as 5-5.5 times salary or even 6 times salary.
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.