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Mortgage Advisor & Director
A mortgage of £450k is a big financial commitment, so it’s recommended that you run some calculations before you apply for one. In this guide, you’ll learn how to calculate the monthly repayments on a mortgage of this amount, what factors can affect them, and how we can help you reduce them.
How much are the monthly repayments on a £450,000 mortgage?
The average monthly repayments on a £450,000 mortgage are around £2,375. This is based on typical interest rates at the time of writing (December 2024) being 4% and the most common term length standing at 25 years. Based on this monthly cost, you would have repaid £715,580 by the end of the term, assuming the mortgage in question is a capital repayment agreement.
Your exact monthly repayments on a mortgage of this amount will, however, vary depending on the interest rate you qualify for, the term length you select and the mortgage type.
Calculate your monthly repayments
You can use our calculator below to work out what your mortgage repayments could amount to if you were to borrow £450k. Simply enter an interest rate and term length then hit 'calculate' to get some quick results. The output can then be converted into interest-only if you wish.
Now that you’ve run some calculations, you can choose your own mortgage deal through Teito for free. We also have mortgage brokers on hand to help you make the right decision - start your mortgage journey with us here.
Factors that affect £450k mortgage repayments
The factors below are the main variable that can drive your mortgage repayments up and down. We have compiled tables full of example calculations to add context to each.
Term length
Longer and shorter mortgage terms than the standard 25 years are available. You can potentially reduce your monthly repayments by opting for a longer term, but keep in mind that having more interest payments to make means paying more for your mortgage overall.
The table below shows how term length can impact the cost of a £450k mortgage, with examples based on a capital repayment mortgage with an interest rate of 4%.
|
Mortgage Amount |
Term Length |
Monthly Repayments |
Overall Repayment |
| £450k | 10 years | £4,556 | £546,724 |
|
£450k |
15 years |
£3,329 |
£599,147 |
|
£450k |
20 years |
£2,727 |
£654,459 |
|
£450k |
25 years |
£2,375 |
£712,580 |
|
£450k |
30 years |
£2,148 |
£773,413 |
|
£450k |
35 years |
£1,992 |
£836,844 |
|
£450k |
40 years |
£1,881 |
£902,747 |
Interest rate
The overall strength of your application will determine what kind of interest rate you end up with. The table below shows how the rate can affect the cost of a £450,000 mortgage, based on a standard term length of 25 years, taken on a capital repayment basis.
|
Mortgage Amount |
Interest Rate |
Monthly Repayments |
Overall Repayment |
|
£450k |
3.5% |
£2,253 |
£675,842 |
|
£450k |
4% |
£2,375 |
£712,580 |
|
£450k |
4.5% |
£2,501 |
£750,374 |
|
£450k |
5% |
£2,631 |
£789,197 |
|
£450k |
5.5% |
£2,763 |
£829,018 |
|
£450k |
6% |
£2,899 |
£869,807 |
There are ways that you can improve your chances of securing a low interest rate, such as putting down more deposit and strengthening your credit position.
Mortgage type
This refers to both the product type and the repayment type. Let’s start with repayment types, which refers to the way you pay off your mortgage over the agreed term.
The most common type in the UK is capital repayment, where you settle the debt in monthly instalments that have interest charges rolled into them. The most popular alternative is an interest-only mortgage, which only requires borrowers to make interest payments each month and settle the debt itself at the end of the term, via a pre-approved repayment vehicle.
The table below shows what the repayments would be on a £450,000 interest-only mortgage, based on various different rates and a term length of 25 years.
|
Mortgage Amount |
Interest Rate |
Interest-only Payments (Monthly) |
Overall Repayment |
|
£450k |
3.5% |
£1,313 |
£843,750 |
|
£450k |
4% |
£1,500 |
£900,000 |
|
£450k |
4.5% |
£1,688 |
£956,250 |
|
£450k |
5% |
£1,875 |
£1,012,500 |
|
£450k |
5.5% |
£2,063 |
£1,068,750 |
|
£450k |
6% |
£2,250 |
£1,125,000 |
The mortgage product type can also affect your repayments by determining how interest is charged. The most common product types in the UK are fixed-rate and tracker mortgages - you can read more on them through the links.
Comparing similar mortgage amounts
For some prospective borrowers, £450,000 will be the approximate mortgage size that they need. The table below shows you how your repayments might change if you were to borrow slightly more or less than this on a capital repayment basis with a 4% rate over 25 years.
|
Mortgage Amount |
Monthly Repayments |
Overall Repayments |
|
£410k |
£2,164 |
£649,239 |
|
£420k |
£2,217 |
£665,074 |
|
£430k |
£2,270 |
£680,910 |
|
£440k |
£2,322 |
£696,745 |
|
£2,375 |
£712,580 |
|
|
£460k |
£2,428 |
£728,415 |
Calculations all done? Here are your options now...
Other costs and fees
When taking out a £450k mortgage, you should be aware of the other costs and fees involved. 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 for reducing your mortgage payments
Below you will find some tips that could help you keep the repayments on your £450,000 mortgage to a minimum:
- Factor in mortgage fees: There’s little point in accepting a lower interest rate if the deal comes with high fees that leave you out of pocket overall. Factor in all of the mortgage fees when working out which mortgage deal is the most cost effective in the long run.
- Download your credit reports: Checking them to report inaccuracies or outdated information could improve your credit score and boost your chances of landing a lower interest rate. Sign up for a free trial with Checkmyfile to download your reports today.
- Save extra deposit: If you are in a position to do this, it could mean that you end up with a lower interest rate and therefore lower mortgage repayments. The best rates tend to kick in when borrowers have at least 25% of the property’s value to put down.
- Speak to a mortgage broker: Brokers are ideally placed to help get your mortgage repayments down as low as possible by helping you lock in the best interest rate available and find a deal with the right term length and product type for you.
Why choose Teito for your mortgage needs?
Now that you have worked out the repayments on your £450,000 mortgage, you can use Teito to source your own mortgage deal for free. We have expert mortgage brokers on hand to make sure you’re getting the best deal and oversee the application process for you.
Here are just some of the reasons to source your mortgage through us:
- You can access exclusive rates and deals
- Our brokers are whole-of-market and impartial
- We are 5-star rated on leading review websites
- It takes just minutes to secure a mortgage in principle
Ready to source your mortgage and access expert broker advice? Get started here to kick things off with free, no-obligation chat about your mortgage options.
FAQs
Given that most mortgage lenders will cap your maximum borrowing at 4-4.5 times annual salary, all of the applicants would need a combined salary of £100,000-£112,500 a year to get approved for a mortgage of £450,000.
If you don’t have this much income, the good news is that a smaller number of lenders might be willing to offer you a deal based on 5 times salary, or even up to 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.