Show
Updated: May 13, 2022 Looking for a £250,000 mortgage? Here’s how much you need to earn, where to find the best rates, and examples of monthly repayments for a £250k loan. Get Started Ask A Quick Question Ask A Quick Question We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects. Ask us a question and we'll get the best expert to help. No impact on your credit score Author: Pete Mugleston - Mortgage ExpertUpdated: May 13, 2022 With average UK house prices on the rise, you may be looking for a £250,000 mortgage to buy the home you really want. But, how much you can borrow often comes down to the lender you deal with. This guide covers everything you need to know about getting a £250k property loan. You’ll learn all about how much you need to earn, the deposit you need, and all the different factors that can affect your monthly mortgage repayments. Keep reading for all the essential information or click a link below to jump to a specific section… How much do you need to earn to get a £250,000 mortgage?Based on the typical income multiple used by most lenders – 4.5 times annual income – you’d need to earn £55,000 to be able to borrow this amount. But the exact figure will depend on the lender you deal with. This is because they will all use different methods to work out how much you can borrow. Some will use income multiples, which can often range from 3 to 5 times your annual salary or slightly higher. But, other lenders will have their own unique formula to calculate what you can afford. These calculations can be based on a variety of factors relating to your finances, personal circumstances, and the property you’re looking to buy. However, your annual income will still play an important role in most cases. Try our mortgage affordability calculator below to work out whether you’d qualify for a mortgage of this amount. Mortgage Affordability CalculatorOur affordability calculator can tell you how much you can potentially borrow from a mortgage lender. Simply enter your total household income below and our calculator will do the rest. Your Income
Input full salaries for all applicants £ You could borrow up toGet Started with an expert broker to find out exactly how much you could borrow. Example calculationsAlthough working out how much you can borrow sometimes involves complex affordability calculations, it’s quite straightforward to get a rough ballpark figure. The easiest way to do this is by looking at annual salary figures. Here’s a few examples of how much you’d need to earn to borrow £250,000 for a mortgage, based on various levels of household income (either as a sole applicant or joint):
As you can see, it definitely helps to have a higher salary if you’re looking for a £250,000 mortgage. But don’t worry if your income doesn’t quite reach your desired borrowing amount. By speaking with the right lenders, there can be ways to make a £250k mortgage more realistic for your situation. This could involve access to higher income multiples, which can go as high as 6 times your salary in some cases, or perhaps the inclusion of additional sources of income. There’s also plenty of other options unrelated to salary that your broker can help you explore. Speak to a mortgage expert todayCost of monthly repaymentsYour specific deal and mortgage terms will dictate how much your monthly repayments will be. But, you can try our mortgage repayments calculator below to get a clearer idea of what yours will look like. Mortgage Repayment CalculatorOur mortgage repayment calculator can tell you how much your mortgage will cost you each month and overall. Enter the amount you’re borrowing, the term length and interest rate, and our calculator will do the rest. Loan Amount
Enter the amount you're borrowing £ Mortgage Rate
2.5% is an average figure but the rate you get may vary % Mortgage Term
25 years is average, but most lenders offer longer and shorter terms years This is an interest only mortgage Total amount paid at end of term: Get started with an expert broker to find out how much they could help you save on your mortgage repayments. Example repayment calculationsYour specific deal and mortgage terms will dictate how much your monthly repayments will be. But, here are some rough costs to give you an idea about how much you could pay per month for a £250k mortgage with a 3.5% interest rate:
It’s important to remember that although a longer term can reduce your monthly repayments, you’ll end up paying more over the life of the mortgage. So, it’s worth your time to find the best deal possible and the lowest rates – because what seems like a small difference will make a big impact to the cost of your mortgage in the long-run. Our Broker-Matching Service Guaranteed!We want you to have complete confidence in our service, and get the best chance of securing your mortgage. We guarantee to get your mortgage approved where others can’t – or we’ll give you £100* How a broker can helpWhen you’re looking to borrow £250,000, it’s important to explore every avenue to make sure you are able to get a loan of this size. It’s also vital that the deal you end up with is as affordable as possible. Using the services of an experienced mortgage broker will help you find the lowest repayments available on a £250k mortgage. Not only will their assistance save you money, having an expert in your corner means that they can guide you through the whole application process, from start to finish. So, if you’d like an introduction to a skilled advisor, just make an enquiry. We’ll put you in touch with an expert broker for a free, no obligation, initial chat. Other factors affecting monthly mortgage repaymentsAs mentioned, your salary isn’t the only thing taken into consideration when most lenders calculate how much you can borrow and the cost of your monthly repayments. Here’s some other important areas that can play a direct role:
ReviewsDeposit size and loan-to-value ratiosThere’s no one-size-fits-all deposit size for a £250,000 mortgage. The good news is that there will be options to explore no matter what figure you’re able to put down on your new house. Some lenders will have loan to value (LTV) ratio limits of around 70-80%. But, certain lenders will go as high as 90% or 95%. Here’s a visual guide to show you what level of deposit you need for a £250,000 mortgage on a range of LTVs:
Keep in mind, a higher LTV ratio (meaning a smaller deposit) can sometimes lead to higher rates, and a more expensive mortgage. So, it’s worth dealing with the lender who can arrange a £250,000 loan with the lowest monthly repayments based on the deposit you can afford. Speak with an expert to find the best £250k mortgage for youWith certain lenders, it might be difficult to stretch your income to afford a £250,000 mortgage. And, some lenders will charge higher interest rates, which can make your monthly repayments on a £250k mortgage more than they need to be. We offer a free broker-matching service. This means we’ll quickly assess your income and mortgage needs, then pair you up with an expert broker. Their experience and existing relationships with lenders will ensure they’re able to get you the best deal possible. Just call 0808 189 0463 or make an enquiry. We’ll set up a free, no obligation chat between you and your ideal mortgage broker today. Related ArticlesPete MuglestonMortgage Expert About the authorPete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background. Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course! Continue ReadingMortgage Payments How Much Can You Borrow on a Mortgage? Maximum Mortgage Amounts Mortgage Multipliers For Couples What To Do If You Can’t Afford A Mortgage £300 Per Month Mortgages Getting A Mortgage For £400-£500 a Month £600 Per Month Mortgages £700-800 Per Month Mortgages £900 Per Month Mortgages £1,000-Per-Month Mortgages £1,500 Per Month Mortgages £2,000-Per-Month Mortgages £3,000-Per-Month Mortgages £5,000 Per Month Mortgages £20,000 Mortgages £30,000 Mortgages £40,000 Mortgages £50,000 Mortgages £60,000 Mortgages £70,000 Mortgages £80,000 Mortgages £100,000 Mortgages £120,000 Mortgages Getting a £150,000 Mortgage £180,000 Mortgages £200,000 Mortgages Income Requirements for £200,000 Mortgages £250k Mortgages: How Much You Need To Earn & Monthly Costs £300,000 Mortgages £350,000 Mortgages £400,000 Mortgages £450,000 Mortgages £500,000 Mortgages Single Income Mortgages Mortgages Based on Three Times Income Mortgages Based on 4-4.5 Times Salary Getting a Mortgage 5 – 5.5 Times Your Salary 6 Times Salary Mortgages Getting A Mortgage 7x Your Salary Overdrafts and Mortgages Getting a Mortgage With a Student Loan FCA Disclaimer*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it. Whatever your situation, we've got it covered. Speak to an expert today - For Free! |