Want to know the repayments on a £100,000 mortgage? Find examples as well as information on how mortgage repayments work, what impacts them and more here.
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Whether you’re moving home, a first time buyer, or looking to remortgage, one of the most important things you’ll need to understand is the cost of your mortgage repayments. The cost of your mortgage repayments will primarily depend on your mortgage affordability, the amount you want to borrow and the terms of your mortgage deal.
Knowing what the repayments look like on the kind of mortgage you’re after – such as a £100,000 mortgage – as well as what you can afford to repay on a monthly basis, will give you a better idea of your mortgage options and help you plan for your long term financial future.
In this guide, we’ll look at the factors that can affect your £100,000 mortgage repayments and what you need to consider when working out the cost of your new home or remortgage.
A £100,000 mortgage is a loan taken out by a borrower to purchase or refinance a property. The loan amount is £100,000 and the borrower agrees to repay the loan, plus interest, over or by the end of a specified term such as 25 years.
The interest rate on the mortgage may be fixed or variable, and the monthly mortgage payments will depend on the type of mortgage, the interest rate, the mortgage term and the amount borrowed. The borrower typically provides the property as security for the loan, in addition to a deposit of at least 5% – 10%. The lender can seize the property if the borrower fails to keep up their monthly capital repayments and/or interest payments.
The main cost of a £100,000 mortgage will ultimately be £100,000 plus interest, but the amount you pay in interest will depend on the depend on the specific terms of your deal, such as the interest rate, mortgage term and repayment method.
On average, a £100,000 mortgage at a 3% interest rate over 25 years could cost around £400 – £450 per month. However, this is an estimate, and the actual costs will vary. Using a mortgage repayment calculator to work out the repayments on a £100,000 mortgage or consulting with an independent mortgage broker will give a more accurate estimate.
Several factors can affect the repayments on a £100,000 mortgage in the UK:
The mortgage deposit is the amount of money a borrower pays upfront to purchase a property when taking out a mortgage. It can affect the repayments and interest payments on a £100,000 mortgage in the UK in the following ways:
The interest rate on a £100,000 mortgage in the UK can significantly affect the monthly payments on both an interest-only and repayment mortgage as it will affect the amount of interest paid each month.
The interest rate is the rate at which the lender charges the borrower. It is calculated as a percentage of the total outstanding loan amount.
To calculate the mortgage repayments on a £100,000 mortgage in the UK, you’ll need to know the interest rate, loan term and type of loan.
Here’s a step-by-step guide:
You can use a mortgage repayment calculator to help you calculate the monthly repayments on a £100,000 mortgage. Here is an estimate of the monthly payments on a £100,000 repayment mortgage for a few different mortgage terms and interest rates.
|
Mortgage Term |
2% Interest Rate |
3% Interest Rate |
4% Interest Rate |
5% Interest Rate |
|
10 Years |
£920.13 |
£965.61 |
£1,012.45 |
£1,060.66 |
|
15 Years |
£643.51 |
£690.58 |
£739.69 |
£790.79 |
|
20 Years |
£505.88 |
£554.60 |
£605.98 |
£659.96 |
|
25 Years |
£423.85 |
£474.21 |
£527.84 |
£584.59 |
|
30 Years |
£369.62 |
£421.60 |
£477.42 |
£536.82 |
An interest-only mortgage is a mortgage where the borrower only pays the interest over the mortgage term. They don’t make any capital repayments that go towards paying off the outstanding loan amount. It’s only at the end of the mortgage term that borrower must repay the loan in full, often by selling the property or using income from other investments.
Interest-only mortgages don’t affect capital mortgage repayments as there are none; your monthly payments comprise interest payments only. They do however impact what your monthly payments will be and how your overall mortgage cost.
Here’s how:
It’s important to carefully consider the terms of an interest-only mortgage and the reliability of your repayment vehicle before deciding this is the right option for you.
If you have an interest-only mortgage, you can expect your monthly payments to be lower. Here are examples of potential £100,000 interest-only monthly payments for you to compare with the table above.
|
Interest Rate |
Monthly Payment |
|
2% |
£166.67 |
|
3% |
£250.00 |
|
4% |
£333.33 |
|
5% |
£416.67 |
The income or salary needed to be eligible for a £100,000 mortgage is around at least £23,000 per year – but whether a lender will grant you a mortgage for this amount will depend on other factors such as your credit history, deposit, monthly outgoings, etc.
To work out how much you could borrow up to based on your income, use our calculator: How Much Can I Borrow?
The eligibility criteria for a £100,000 mortgage can vary between lenders, but here are some common factors lenders will consider:
Your mortgage broker will talk you through lender eligibility criteria and find you the right match based on your situation when you help you apply for a mortgage.
There are several ways to reduce the monthly payments on a £100,000 mortgage:
Ready to get started on your mortgage journey? Or simply want to chat to an expert about your options? Contact us on 0808 159 4083. One of our expert advisers will answer all your questions about what repayments on a £100,000 mortgage will look like for you and what deals are available now.
