How Much Are Monthly Repayments On £250K Mortgage?

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Your monthly mortgage repayments are the most important aspect of your mortgage deal because it’s this that will determine if the mortgage is something you can realistically afford each month. For a £250,000 mortgage, you’ll find a variety of deals with different factors that will directly impact how much your monthly payments will be.

One of the most important of these factors are the different rates you can find. By putting down a larger deposit you’ll be seen as less of a lending risk, and will therefore have access to better deals with better interest rates, which directly impact monthly repayments.

You’ll also want to decide between fixed rate and variable rate mortgage types, look at your ability to make the monthly payments on a capital repayment mortgage and interest only mortgage, and determine which mortgage length is best. All of these will combine to determine how much your monthly payments will be.

Below we’ll cover all these factors and work through some different mortgage example calculations for a £250,000 mortgage so you can get a better understanding of how these factors influence monthly repayment costs.

*All figures marked with ~ throughout the article are accurate estimates, although final repayment amounts won’t always be the same if you apply for a similar deal due to changing interest rates and mortgage deals.

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How Can I Increase My Chances Of Being Approved For A 250K Mortgage?

Affordability is determined by two main factors:

  • income and spending habits (annual salary and monthly spend)
  • ability to afford mortgage repayments should household circumstances change


If you can show mortgage lenders that you earn enough and spend wisely, then you’ll increase your likelihood of being approved. Being able to show lenders that you have a contingency plan should things change for you will also help.

Income and Spending

The 3 months prior to your mortgage application are of special interest to any mortgage lender considering your application. They need to see that you consistently earn enough each month to cover the mortgage repayments on a £250,000 mortgage based on combined annual income and ensure your spending habits align with your ability to consistently make these repayments.

Finance Stress Test

Showing lenders your ability to repay should your circumstances change essentially means passing their ‘finance stress test’ – which all lenders will carry out for any mortgage application to determine how much you can realistically afford each month.

Lenders will typically look at your circumstances as they are now and then see how changes could impact your ability to make consistent payments. For example, if you’re a dual income household and you dropped to a single household income, could you still afford to make the payments? If you’re a couple, could you still afford payments if you were to have children?

These factors will be considered to ensure you don’t take out a mortgage that’s too large for you to handle should life look different for you in the years following your application.

Can I Get Approved Even With Bad Credit?

If your credit history is poor, then your chances of a successful mortgage application are reduced slightly. But you can stack the odds in your favour if you work with a specialist mortgage broker.

At When The Bank Says No, we have access to specialist lenders that want to know the story behind your credit history. If you’re able to prove that unique circumstances led to your lower credit score, and that you’ve taken active steps since then to improve your score and make yourself a more reliable borrower, then these lenders will consider your application.

A higher interest rate may be attached to your mortgage because of your lower credit score, so this will affect your monthly repayments directly and it’s something you should be prepared for. But you can increase your chances of securing a mortgage, even with bad credit, when you work with our expert team.

What Will Affect The Monthly Repayments On A £250,000 Mortgage?

Each mortgage deal out there will result in a different monthly repayment amount, and that can be confusing when you’re looking to borrow the same amount from each lender – so why are they so different?

The biggest things influencing how much you’ll pay each month are:

  • interest charges based on the interest rate deal you secure
  • your mortgage term length
  • the type of mortgage
  • how much deposit you can put towards the purchase price

Interest Rate Deals

The interest rate on your mortgage is one of the biggest things impacting your monthly repayments. Higher interest rates means higher monthly repayments, so securing a good deal here is important.

One option is to sign up to a fixed rate mortgage when the interest rate being offered to you is low. This allows you to lock into a fixed interest rate for an initial rate period of between 2 and 10 years. You’ll then guarantee your monthly payments for as long as you’re fixed, but this could mean missing out on even lower rates should they fall during the period you have agreed to fix them.

Another option is to remain on your lender’s standard variable rate or tracker mortgages, which respond to the Bank of England’s base rate and will mean you pay more or less in interest rate charges each month. These are excellent options when rates are low, but should the interest rate in the UK rise, you’ll end up paying more each month.

Both options have their pros and cons, but if you want to guarantee the cost of your mortgage each month, then fixing is usually recommended.

Mortgage Terms

How long you have to pay back your £250,000 mortgage will directly impact how much you pay each month because you’ll either have to pay it back quicker and therefore face higher payments, or you’ll pay it back over a longer period and notice lower payments.

You will, however, notice a smaller overall cost due to reduced interest rate charges when you pay back your loan quicker, and a higher overall cost factoring in the interest rate charges when you take out your mortgage over a longer period of time.

Take a look at the example monthly payments (and overall cost) of a £250,000 mortgage taken out over 15 vs 30 years with a 4.5% interest rate:

  • 15 Years: ~£1912 (with a total repayment amount of £344,160)
  • 30 Years: ~£1266 (with a total repayment amount of £455,811)

Mortgage Type

The two broadest categories of mortgage are:

  • repayment mortgages
  • interest only mortgages

Repayment Mortgages

A repayment mortgage is the most common on the mortgage market, since all this mortgage type means is that you’re repaying both your loan capital and interest rate charges each month.

Your capital is the amount you’ve actually borrowed, so each month you’ll be paying that back until the loan is fully repaid, at which time your mortgage is complete. Since you’ll be covering both the interest costs and capital cost of your mortgage, repayments will be higher on this type of mortgage.

Interest Only Mortgages

With an interest only mortgage you’re only obligated to pay the interest of the loan each month. Although its possible to apply for this type of mortgage right away, it’s far more typical today to switch to an interest only mortgage with your capital repayment mortgage lender during the mortgage term to allow yourself some breathing space should your circumstances change.

Since you’ll only be paying the interest costs here, your monthly repayments will be much smaller and you’ll hopefully be able to sort out your personal circumstances during this time to allow you to return to your regular capital repayment mortgage payments – usually within 6 months.

Keeping the different mortgage types in mind and how they can change how much you pay each month is important so you understand your options for switching if necessary during the course of your mortgage.

Deposit

The deposit you put down will directly influence the cost each month of your mortgage. A £250,000 mortgage means you’ve found a property with a value above this amount, but you’ve put down a deposit covering the rest of the property value, and you need to loan £250,000 to cover the rest.

As such, you may have already put down as large a deposit as you can. However, if it’s at all possible for you to put down a larger deposit, then you’ll certainly benefit from even smaller monthly repayments, making your mortgage that much more manageable.

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How To Calculate Monthly Payments For A 250K Mortgage

There’s really only one way to work out your monthly mortgage repayments based on your mortgage term, interest rate, and mortgage type, and that’s with an online mortgage calculator in the UK.

Online mortgage calculators will provide you with an accurate monthly estimate instantly, and all you’ll need to do is provide it with the following information to get the best results:

  • mortgage amount
  • mortgage term
  • mortgage type
  • interest rate
  • any additional fees

How Much Will I Pay Each Month For My 250K Mortgage?

To help illustrate how much you could end up paying each month, the table below will give you a good idea about how each of the factors discussed today will affect payments:

Likely Monthly Payments On A £250,000 Mortgage By Varying Interest Rates And Mortgage Type (All Figures Given Are Accurate Estimates Only ~)
Interest Rates
Mortgage Type Mortgage Term 2.5% 3.5% 4.5% 5.5%
Repayment 5 Years £4437 £4548 £4660 £4775
10 Years £2357 £2473 £2591 £2713
15 Years £1667 £1788 £1912 £2043
20 Years £1325 £1450 £1581 £1720
25 Years £1122 £1252 £1389 £1535
30 Years £988 £1123 £1266 £1419
Interest Only ALL £521 £730 £937 £1146

250K Mortgage Monthly Repayments Summary

Getting the best deal with a monthly repayment plan you can afford is the key to success when comparing £250,000 mortgages. You can increase the likelihood of finding an even better deal by working with a mortgage broker.

At When The Bank Says No, we specialise in helping borrowers find lenders who will consider their application even where they don’t meet traditional high street lenders’ lending criteria. So even if you might not qualify for other mortgages, we may be able to help find certain lenders who will consider your application.

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Emma Jones
Emma Jones
Emma began her career in Lloyds Banking Group, first in the unsecured & secured loans department at Halifax and later as a mortgage advisor at Lloyds. During 9 years in these roles and a further 2 years at Yorkshire Building Society, Emma was able to observe the impact of the recession, and how the banks let their customers down by denying loans and mortgages. Wanting to be a driving force for change, she stepped into a market advice role where she has been able to help clients when others couldn’t. Identifying a gap in the mortgage space, Emma went on to establish When the Bank Says No. As a keen property investor, she has been the focus of features in publications including The Sunday Times and This is Money. Emma’s greatest joy is overcoming the low expectations of their customers, many of whom have all but given up on getting a mortgage due. One thing Emma has learned through her own personal struggles is every client must be treated like a human and understood better by advisors and lenders in the industry. “We all have to navigate life events which can ultimately impact your financial status. It shouldn’t mean dreams of homeownership or business growth should have the breaks applied”. Emma and her team’s passion for helping people overcome the challenges they may face when applying for a mortgage have fuelled the success of When the Bank Says No.