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A mortgage of £800,000 would be officially classed as large, so it’s important to be prepared before you apply for one. Here, you will learn how to calculate the repayments on a mortgage of this size and where to turn for specialist advice.
How much would an £800,000 mortgage cost per month?
Based on the market conditions at the time of writing (December 2024), an £800,000 mortgage would cost around £4,223 per month. This example calculation is for a capital repayment mortgage of this amount with a 4% interest rate and a 25-year term.
The overall repayments on a £800,000 mortgage would be £1,266,808 across the term, but that is assuming no changes are made to the agreement over those 25 years.
While the example calculations we have provided are representative of the UK market, your exact repayments may vary based on several factors, which we will explore in this article.
How to calculate your repayments
You can use our calculator below to work out the repayments on your £800k mortgage and compare how they would look with different interest rates, terms and repayment types.
Enter these details into the calculator below and it will serve you quick results.
Now that you have run calculations, your next step is to compare £800k mortgage rates and apply for an agreement in principle. You can do this for free and take advantage of a no-obligation chat with a broker on Teito - get started here.
Factors that will determine your repayments
The exact repayments you can expect on a £800,000 mortgage will depend largely on the interest rate you qualify for, the term length and the type of mortgage you choose.
The sections which follow will explore how these factors affect an £800k mortgage in depth.
Interest rate
The interest rate on your £800k mortgage will depend on the factors below:
- How much deposit you have: The lower the loan-to-value (LTV) ratio, the better your chances of securing a favourable rate on your mortgage.
- Overall strength of application: Risk factors such as bad credit or being self-employed with limited proof of income can make it harder to land the best rates.
- Product type: Different rates are attached to each product type. Fixed-rate mortgages, for example, generally come with lower rates than trackers and deals with fees attached have lower rates than fee-free mortgage products.
The table below shows how the costs of a £800k mortgage will vary across different interest rates. These examples are for a capital repayment mortgage with a 25-year term.
|
Mortgage Amount |
Interest Rate |
Monthly Repayments |
Overall Repayment |
|
£800k |
3.5% |
£4,005 |
£1,201,497 |
|
£800k |
4% |
£4,223 |
£1,266,808 |
|
£800k |
4.5% |
£4,447 |
£1,333,998 |
|
£800k |
5% |
£4,677 |
£1,403,016 |
|
£800k |
5.5% |
£4,913 |
£1,473,810 |
|
£800k |
6% |
£5,514 |
£1,546,323 |
Term length
Mortgage lenders offer a range of term length options in addition to the standard 25 years. The table below shows how the cost of an £800k mortgage can vary depending on the term length, with example calculations for a capital repayment mortgage with a 4.5% rate.
|
Mortgage Amount |
Term Length |
Monthly Repayments |
Overall Repayment |
|
£800k |
10 years |
£8,100 |
£971,953 |
|
£800k |
15 years |
£5,918 |
£1,065,151 |
|
£800k |
20 years |
£4,848 |
£1,163,482 |
|
£800k |
25 years |
£4,223 |
£1,266,808 |
|
£800k |
30 years |
£3,819 |
£1,374,956 |
|
£800k |
35 years |
£3,542 |
£1,487,723 |
|
£800k |
40 years |
£3,344 |
£1,604,884 |
Notice how the monthly payments decrease and the overall amount rises as the term length goes up? Stretching a mortgage over a lengthier team means paying less each month but more in the long run due to having more interest instalments to deal with.
Repayment vs. interest-only mortgages
Most Uk residential mortgages are taken out on a capital repayment basis where you pay off the debt plus interest each month. The main alternative is interest-only, which means you only need to settle the interest each month and pay off the loan itself at the end of term.
The table below shows what the repayments would look like on an £800,000 interest-only mortgage across different rates, with a term length of 25 years.
|
Mortgage Amount |
Interest Rate |
Interest-only Payments (Monthly) |
Overall Repayment |
|
£800k |
3.5% |
£2,333 |
£1,500,000 |
|
£800k |
4% |
£2,667 |
£1,600,000 |
|
£800k |
4.5% |
£3,000 |
£1,700,000 |
|
£800k |
5% |
£3,333 |
£1,800,000 |
|
£800k |
5.5% |
£3,667 |
£1,900,000 |
|
£800k |
6% |
£4,000 |
£2,000,000 |
The exact mortgage amount
The table below shows how the repayments on an £800,000 mortgage compare with other amounts in the same range, for those who see £800,000 as a ballpark borrowing amount.
|
Mortgage Amount |
Monthly Repayments |
Overall Repayments |
|
£790k |
£4,170 |
£1,250,973 |
|
£800k |
£4,223 |
£1,266,808 |
|
£810k |
£4,275 |
£1,282,644 |
|
£820k |
£4,328 |
£1,298,479 |
|
£830k |
£4,381 |
£1,314,314 |
|
£840k |
£4,434 |
£1,330,149 |
Calculations all done? Here are your options now...
Other costs and fees
The repayments on your £800k mortgage aren't the only costs your need to think about. Mortgages usually include the fees below as well:
- 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 to reduce your mortgage repayments
As the repayments on an £800k mortgage are relatively high, you may wish to read through some of our tips about how to lower your mortgage payments below:
Factor in mortgage fees: The overall cost of your mortgage is what’s important. There’s no point taking a deal without a product fee if that means paying more in the long run because the rate attached is much higher. Deals with a fee attached generally have lower rates, so be sure to work out the overall cost.
Be aware of market conditions: This will help you get the best deal in the long run. It’s important to research which direction UK interest rates are expected to head in. If they are forecast to rise in the long term, locking into a fixed rate for the long term might be a better option to protect yourself from repayment increases.
Improve your credit position: This can help you qualify for a superior interest rate and therefore lower monthly repayments. You can download your credit reports for free by starting a free trial with Checkmyfile. Reviewing them and requesting for outdated/inaccurate information to be removed can strengthen your position.
Speak to a mortgage broker: The right mortgage broker can ensure you get the best £800k mortgage deal available, with their knowledge, experience and lender contacts. This could mean an exclusive rate, and lower repayments as a result.
Get started on your mortgage journey
Now that you have a better idea of how the repayments could look on your £800,000 mortgage, your next step should be to compare rates and deals from across. You can do this for free on Teito and access support from a broker who specialises in large mortgages.
Here are just some of the reasons why you should choose us:
- You can access £800k mortgage rates for free in seconds
- Our brokers often have access to exclusive deals
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to compare rates and deals for £800k mortgages and take advantage of a free, no-obligation chat with a broker who specialises in large mortgages? Get started here.
FAQs
All of the mortgage applicants would need a combined salary of just below £177,800 to get approved for an £800,000 mortgage. This is based on the maximum borrowing at most mortgage lenders being around the 4.5 times annual salary mark.
If you don’t earn this much, your options would typically include:
- Finding a lender who stretches to 5-6 times income
- Declaring supplemental income such as bonuses, benefits or investments
- Add more applicants to the mortgage (some lenders allow up to four)
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.