What are the Repayments on a £400 000 mortgage?

What are the Repayments on a £400 000 mortgage?

What are the monthly repayments on a £400,000 mortgage?

Lots of customers approach us to find out how much they can expect to repay for a mortgage of a particular size.

Jump to our calculator journey to establish the costs and which of the best deals you’ll qualify for.

This article is based specifically on £400k mortgages, what factors lenders consider before authorising a mortgage of this size, and how much approximately the monthly repayments on a £400k mortgage will cost you.

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What can I expect to pay for a mortgage on a £400,000 property?

If you’re wondering how much your monthly mortgage repayments would be on a £400k mortgage, unfortunately there is no “one size fits all” response. The cost of a £400k mortgage can vary drastically case-by-case, and lender-by-lender.

All mortgage providers have their own eligibility criteria as well as different views on how your individual circumstances (discussed later) affect the interest rate you’re offered, and therefore how much your monthly repayments will be.

Interest rate

The two key variables that will impact how much you may monthly on a mortgage for a £400,000 house are interest rate and the length of the term.

The table below* illustrates how mortgage payments on a £400k house varies based on these two variables:

Interest rate 1% 2% 3% 4% 5%
5 year mortgage £6,837 £7,011 £7,187 £7,367 £7,548
10 year mortgage £3,504 £3,681 £3,862 £4,050 £4,243
15 year mortgage £2,394 £2,574 £2,762 £2,959 £3,163
20 year mortgage £1,840 £2,024 £2,218 £2,424 £2,640
25 year mortgage £1,507 £1,695 £1,897 £2,111 £2,338
30 year mortgage £1,287 £1,478 £1,686 £1,910 £2,147
Interest-only mortgage £333.33 £666.66 £999.99 £1333.32 £1666.65

*The above example is for demonstrative purposes only and you should consult your broker or lender for the most up-to-date information and rates.

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Term length

The mortgage term length can have a huge impact on how much a £400k mortgage costs, not only in monthly repayments, but on how much interest you end up paying overall.

See the table below which demonstrates how reducing your mortgage term affects your monthly payment costs and total amount repaid for a £400k mortgage on an standard interest rate of 3%:

Monthly repayment Total repaid Total interest paid
400k mortgage over 30 years £1,686 £607,110 £207,110
400k mortgage over 25 years £1,897 £569,054 £169,054
400k mortgage over 20 years £2,218 £532,414 £132,414
400k mortgage over 15 years £2,762 £497,219 £97,219
400k mortgage over 10 years £3,862 £463,492 £63,492
400k mortgage over 5 years £7,187 £431,249 £31,249

*The above example is for demonstrative purposes only and you should consult your broker or lender for the most up-to-date information and rates.

In this situation, taking a mortgage out over a 20 year period as opposed to a 30 year term could save you nearly £75,000!

What other factors impact the cost of a £400,000 mortgage loan?


So, how much income is needed for a £400k mortgage, and why are your earnings important? Income is a key considerations for lenders because it gives an indication as to whether you can afford a £400,000 mortgage on your salary.

Affordability is assessed by calculating your debt-to-income (DTI) ratio (monthly income minus any outgoings). The lower your DTI the better, as this suggests to lenders that you have more disposable income to put towards mortgage payments.

Many providers cap loans at between 4 to 4.5 times your annual income, although some will do 5x, and a few will even stretch to 6x. If you’re looking to use a secured loan as collateral, some lenders will consider loaning 10x your income.

Loan-to-value (LTV)

Mortgage lending is based on how much money you want to borrow in relation to the property’s value. This is known as the loan-to-value (LTV) ratio.

So, if you put down a deposit of £40,000 on a property valued at £400,000, you have purchased 10% of it and will need to take out a mortgage for the remaining 90%, making your LTV 90%.

Most residential providers offer up to 85% LTV, some are happy at 90%, and a handful may accept 95%. However, the most competitive rates will usually be reserved for those with lower LTV as they pose less risk.

Credit history

If you have a history of adverse, lenders typically see you as higher risk. However, as mentioned every provider has different eligibility requirements and views on what they will and won’t accept. This is also true of bad credit issues.

Some lenders will not accept anyone who has experienced any forms of adverse at all, whereas others accept severe instances, such as repossessions and bankruptcies.

A lot of the time it is dependant on the recently and/or severity of the issue, although some providers may request a larger deposit, or cap the amount they will lend you.

Read our guide on getting a mortgage with bad credit for more information, or make an enquiry and we’ll refer you to one of the bad credit experts we work with.


Older people can find it difficult to get a mortgage as many providers have age limits. Some won’t loan into retirement full-stop, and others won’t authorise a mortgage to anyone over 70 or 75.

Some lenders cap at 80, others at 85, and a handful don’t have any age caps at all, provided they are confident you can afford the repayments into retirement.

Speak to an expert who can find the most competitive rates to suit your needs. Find out more at our later life lending section here.

Employment type

Those with a PAYE salary from a full-time job are most desirable to lenders, and anything else tends to fall into the non-standard income niche, meaning you may be offered less favourable rates.

If you’re self-employed, many lenders require evidence of at least three years’ worth of accounts before they will consider giving you a mortgage. Other will accept two, and a handful will consider one year’s worth of books.

Don’t lose hope if you don’t fall into the “unconventional” employment bracket –  there are plenty of specialist lenders out there who offer competitive deals for the self-employed, and to those who supplement their earnings with bonuses or benefits.

How does the property type affect my repayments?

Buy-to-let (BTL) properties

If your £400,000 mortgage is for a buy-to-let (BTL) investment, there are several things to consider as different rules apply than with residential mortgages.

Many lenders will require a larger deposit, typically 25%+. Some also have minimum income requirements, and affordability is based not only on the borrower’s income, but the BTL’s forecast rental income. Many want evidence that rent generated through letting covers the mortgage payments by 125-130%.

Visit our dedicated BTL page for more information on this.

Second homes

Many lenders consider you higher risk if you already own a home and are looking to take out a mortgage on another. This is because if you fall into financial difficulty, lenders assume that you’ll prioritise repayments for your main place of residence.

You’ll likely need to put down a larger deposit for a second home, there may be high minimum income requirements, and more extensive checks around your affordability.

Non-standard construction types

Some providers will not lend on properties that deviate from the “standard” construction type, such as listed buildings, unique properties or those with thatched roofs, etc. Other lenders will consider but will deem them higher risk and offer less favourable rates.

Nevertheless, some lenders are happy to consider a wider range of property types. Read more at our non-standard property section here.

£400,000 mortgage payment calculator

As discussed above, there are so many variables when it comes to getting a mortgage. As such, online calculators can only provide you with a rough idea as to your eligibility.

Your best bet is to contact us, and we can pass your enquiry to a specialist advisor most suited to your circumstances. In the meantime, you can check out our mortgage repayment calculator here.

Talk to a whole of market mortgage expert today

If you like what you’re reading or require more information surrounding your £400,000 mortgage, call Online Mortgage Advisor on 0808 189 2301 or make an enquiry.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee, and there’s no obligation or marks on your credit rating.

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