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It is possible to take out a mortgage as small as £60k, but doing some research first is advisable. Here you can work out what the repayments will be on a mortgage of this size, compare rates, and access professional advice.
What would the repayments on a £60k mortgage be?
The average monthly repayments on a £60,000 mortgage would be around £317. This example calculation is based on a capital repayment mortgage taken on a 25-year term, with an interest rate of 4%, a typical deal at the time of writing (December 2024).
This mortgage would cost you around £95,011 overall across the entire term, assuming you make no significant changes to it for the duration of the agreement.
While the example we have provided is representative of the current market conditions, your exact repayments on your £60k mortgage may vary depending on the rates you qualify for, the term length you agree, and the type of mortgage product you choose.
How to calculate your repayments
You can use our calculator below to work out what the repayments on your £60,000 mortgage will look like. Fill out the input fields below and the tool will do the rest.
Now that you have a better understanding of how much your mortgage will cost, you can compare the latest rates and deals for free on Teito - get started here.
Factors that will affect your repayments
As we have already touched on, the repayments on a £60k mortgage may differ depending on the interest rate, term length and the mortgage’s product and repayment type. In this section we will explore the impact of these variables with example calculations.
Interest rate
The overall strength of your application and the amount of deposit you have will determine the interest rate you end up with, but different product types such as fixed rates and tracker mortgages have various different rates too. Generally speaking, longer fixes and deals with an upfront product fee tend to have some of the lowest rates at present.
The table below shows how the cost of a £60,000 capital repayment mortgage can vary depending on the interest rate. A term length of 25 years was used for these examples.
|
Mortgage Amount |
Interest Rate |
Monthly Repayments |
Overall Repayment |
|
£60k |
3.5% |
£300 |
£90,112 |
|
£60k |
4% |
£317 |
£95,011 |
|
£60k |
4.5% |
£333 |
£100,050 |
|
£60k |
5% |
£351 |
£105,226 |
|
£60k |
5.5% |
£368 |
£110,536 |
|
£60k |
6% |
£387 |
£115,974 |
Term lengths
One way to reduce the monthly payments on a £60k mortgage is to take one out over a longer term length than the standard 25 years. Just keep in mind that this will mean paying more overall due to having additional interest instalments to take care of.
The table below shows hope the payments on a £60k capital repayment mortgage will differ over different term lengths. An example rate of 4.5% was used for these calculations.
|
Mortgage Amount |
Term Length |
Monthly Repayments |
Overall Repayment |
|
£60k |
10 years |
£607 |
£72,896 |
|
£60k |
15 years |
£444 |
£79,886 |
|
£60k |
20 years |
£364 |
£87,261 |
|
£60k |
25 years |
£317 |
£95,011 |
|
£60k |
30 years |
£286 |
£103,122 |
|
£60k |
35 years |
£266 |
£111,579 |
|
£60k |
40 years |
£251 |
£120,366 |
Repayment type
We have already discussed how the mortgage’s product type can affect its interest rate and therefore repayments, but the repayment type you choose will also impact this.
Most UK residential mortgages are taken out on a capital repayment basis, but interest-only mortgages are available as an alternative to borrowers with a repayment vehicle.
The table below shows what the repayments on a £60,000 interest-only mortgage would look like across different interest rates and a term length of 25 years.
|
Mortgage Amount |
Interest Rate |
Interest-only Payments (Monthly) |
Overall Repayment |
|
£60k |
3.5% |
£175 |
£112,500 |
|
£60k |
4% |
£200 |
£120,000 |
|
£60k |
4.5% |
£225 |
£127,500 |
|
£60k |
5% |
£250 |
£135,000 |
|
£60k |
5.5% |
£275 |
£142,500 |
|
£60k |
6% |
£300 |
£150,000 |
The mortgage amount
If borrowing slightly more or less than £60k is an option for you, the table below shows how the repayments will different for similar amounts in this ballpark. These calculations are for a capital repayment mortgage taken over 25 years with a 4.5% interest rate.
|
Mortgage Amount |
Monthly Repayments |
Overall Repayments |
|
£40k |
£211 |
£63,340 |
|
£45k |
£238 |
£71,258 |
|
£50k |
£264 |
£79,176 |
|
£55k |
£290 |
£87,093 |
|
£60k |
£317 |
£95,011 |
|
£65k |
£343 |
£102,928 |
Calculations all done? Here are your options now...
Other mortgage costs
The repayments on your £60k mortgage are just one of the costs you need to be aware of. You will also need to factor in the following fees to draw up an effective budget:
- 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.
- Booking fee: An admin cost as part of the mortgage application process. It can range between £99-250 and is sometimes rolled into the product fee.
- 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.
- Telegraphic transfer fee: A small fee to cover the cost of transferring your mortgage funds to your solicitor so the deal can be closed, usually between £25 and £50.
- Account fee: Another admin cost, usually between £100 and £300, to cover the set up, maintenance and eventual closure of your mortgage account held by the lender.
- Stamp duty: See our guide to stamp duty to find out how much your bill will be and whether you qualify for exemption.
It's worth noting that not all of the above will apply, and some of these fees could be billed as a percentage of the mortgage amount, which in this case, is relatively low.
Tip to help you reduce your mortgage payments
You can potentially keep the repayments on your £60k mortgage to a minimum by taking the tips below on board:
- Put down a larger deposit: Not only would you need to borrow less, putting down extra deposit can reduce the loan-to-value (LTV) ratio and help you qualify for a lower rate.
- Improve your credit situation: Waiting for any bad credit to disappear from your credit files, paying off debts you’re in a position to clear, and paying any existing bills and credit agreements on time ahead of your application can also help you land a lower rate.
- Consider a longer mortgage term: This will reduce your monthly payments in the short term (on a capital repayment agreement), but you will be paying more in interest overall.
- Consider interest-only: Interest-only mortgages have lower monthly payments but you will need a repayment vehicle to settle the debt at the end of the term. Be sure to seek professional advice from a qualified mortgage broker before choosing this option.
Compare £60,000 mortgage rates today
Now that you have run some calculations, the next step on your mortgage journey is to compare the rates and deals available for £60k mortgages across the market. You can do this for free on Teito and access support from one of our brokers along the way.
Here are just some of the reasons why our customers choose us:
- You can access rates and deals in seconds
- Exclusive products are often available
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to compare £60,000 mortgage rates and deals and take advantage of a free, no-obligation chat with one of our expert advisors? Get started here.
FAQs
You would need to be earning just under £13,334 as most mortgage lenders will cap your maximum borrowing at 4.5 times salary. If your salary falls short, fallback options include applying jointly with other applicants, finding a mortgage provider who lends based on higher income multiples, or finding a lender who will let you declare supplemental income (such as any benefits or investments you might have) alongside your main 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.