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Mortgages of £275,000 are common in the UK, but it pays to do your research before you apply for one. Here you will learn how much a mortgage of this amount costs each month and how to calculate the repayments yourself.
How much are the repayments on a £275,000 mortgage?
Based on the current market conditions in the UK (December 2024), a £275,000 mortgage would cost you around £1,452 per month. This example calculation is based on a capital repayment mortgage with a 4% interest rate taken out over a period of 25 years.
If you were to repay that amount on a mortgage of this size for the duration of the term, you will have repaid a total of £435,465 by the end of the agreement.
Although this example is representative of an average UK mortgage deal, the exact amount you repay on a £275k mortgage will depend on the interest rate you qualify for, the term length you choose and the type of mortgage you are taking out.
Calculate your mortgage payments
You can use our calculator below to work out the monthly and overall payments on a £275k mortgage. This tool is set up to calculate this mortgage amount by default, but you can change the figure as well as the rate and term if you wish to make some comparisons.
Now that you’ve run some calculations, you can take the next steps on your mortgage journey with us. On Teito, you can compare the latest mortgage rates for free and get expert advice from one of our brokers, if you need some help - get started here.
Factors that determine your repayments
The main factors that will determine the exact repayments on a £275k mortgage are:
- The rate you qualify for: This will depend on the amount of deposit you have (the more, the better) and the overall strength of your application.
- Term length: A standard mortgage term would be 25 years, but you will likely have the option of a longer or shorter agreement. Longer mortgage terms mean paying less each month, but more overall due to having more interest instalments to pay.
- Mortgage type: Product types such as fixed-rate and tracker mortgages have their own interest rates. Your mortgage’s repayment type will also affect the monthly cost, as interest-only mortgage payments work differently to capital repayment.
We will now explore the impact of these variables on a £275,000 mortgage.
Interest rate
The table shows how the cost of a £275k mortgage will vary across different interest rates. These calculations are for a capital repayment mortgage taken over 25 years.
|
Mortgage Amount |
Interest Rate |
Monthly Repayments |
Overall Repayment |
|
£275k |
3.5% |
£1,377 |
£413,014 |
|
£275k |
4% |
£1,452 |
£435,465 |
|
£275k |
4.5% |
£1,529 |
£458,562 |
|
£275k |
5% |
£1,608 |
£482,287 |
|
£275k |
5.5% |
£1,689 |
£506,622 |
|
£275k |
6% |
£1,772 |
£531,549 |
Term length
The table below shows how the cost of a £275k mortgage can vary across different term lengths. These calculations are based on a capital repayment mortgage with a 4% rate.
|
Mortgage Amount |
Term Length |
Monthly Repayments |
Overall Repayment |
|
£275k |
10 years |
£2,784 |
£334,109 |
|
£275k |
15 years |
£2,034 |
£366,146 |
|
£275k |
20 years |
£1,666 |
£399,947 |
|
£275k |
25 years |
£1,452 |
£435,465 |
|
£275k |
30 years |
£1,313 |
£472,641 |
|
£275k |
35 years |
£1,218 |
£511,405 |
|
£275k |
40 years |
£1,149 |
£551,679 |
Interest-only repayments
If you were to take out a £275k mortgage on an interest-only basis, your repayments will be different. The table below shows how the repayments for a mortgage of this amount would look on this repayment type across different interest rates, with a term length of 25 years.
|
Mortgage Amount |
Interest Rate |
Interest-only Payments (Monthly) |
Overall Repayment |
|
£275k |
3.5% |
£802 |
£515,625 |
|
£275k |
4% |
£917 |
£550,000 |
|
£275k |
4.5% |
£1,031 |
£584,375 |
|
£275k |
5% |
£1,146 |
£618,750 |
|
£275k |
5.5% |
£1,260 |
£653,125 |
|
£275k |
6% |
£1,375 |
£687,500 |
Repayments for other mortgage amounts
The table below shows what the repayments would look like for similar amounts in the £275 ballpark, for those who are considering borrowing more. These calculations are for a capital repayment mortgage with a 4% interest rate and a 25-year term length.
|
Mortgage Amount |
Monthly Repayments |
Overall Repayments |
|
£275k |
£1,452 |
£435,465 |
|
£276k |
£1,457 |
£437,049 |
|
£277k |
£1,462 |
£438,632 |
|
£278k |
£1,467 |
£440,216 |
|
£279k |
£1,473 |
£441,799 |
|
£280k |
£1,478 |
£443,383 |
Calculations all done? Here are your options now...
Other costs to factor in
To work out the overall cost of a £275,000 mortgage, you will need to factor in the other costs and fees that mortgage applicants must pay. They are as follows:
- 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: You can find out exactly how much your bill will be in our stamp duty guide.
- 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 help you reduce your repayments
You can potentially minimise the repayments on your £275k mortgage by bearing the tips below in mind:
- 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.
How to get a £275,000 mortgage
Now that you have run some calculations, you can take the next steps on your mortgage journey with us. On Teito you can compare the latest mortgage rates for free and access support from our whole-of-market mortgage brokers, if you need a little help.
Here are just some of the reasons why people choose us for their mortgage needs:
- You can access the latest mortgage rates in seconds
- Our brokers can secure exclusive deals you won’t find elsewhere
- We are 5-star rated on leading review websites
- You could secure an agreement in principle in minutes
Ready to compare rates for free and take advantage of a free, no-obligation chat with a broker who specialises in mortgages of £275k or over? Get started here.
FAQs
To get a £275,000 mortgage, you would generally need a household income of £61,115. This is because most mortgage lenders in the UK won’t let you borrow any more than 4.5 times your annual salary (61,115 x 4.5 = £275,018).
If you don’t earn this amount, you could still qualify for a mortgage of this amount as a smaller number of mortgage providers lend up to 5-6 times salary. There are also lenders who will let you declare supplemental income on top of a salary to boost your affordability.
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.