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£300k mortgage monthly payments work out at about £1,423 at an example 3% rate, £1,584 at 4% and £1,754 at 5%, on a repayment basis over 25 years. On interest only at an example 4%, the payment is £1,000 a month. These are illustrations, not quotes. The rate a lender offers you decides the real figure, and the tables below show how far it moves.
Loans of this size are common for first time buyers and home movers, so this page also covers the income lenders look for, the deposit and house price that go with £300,000, and what first time buyer stamp duty relief does at these prices.
£300k mortgage monthly payments at different example rates
Each row is a £300,000 loan over 25 years. The total repaid column is the monthly payment times 300 months, so it includes the £300,000 you borrowed plus all the interest. At an example 4%, the interest part comes to about £175,053.
| Example rate | Repayment, per month | Total repaid over 25 years | Interest only, per month |
|---|---|---|---|
| 3% | £1,423 | £426,790 | £750 |
| 4% | £1,584 | £475,053 | £1,000 |
| 5% | £1,754 | £526,131 | £1,250 |
| 6% | £1,933 | £579,871 | £1,500 |
Illustration only. These figures are worked out on a £300,000 mortgage at the example interest rates shown, with the rate staying the same for the whole term and payments made monthly. They are not a quote, not an offer of credit and not the rates lenders are offering today. They leave out product fees, valuation and legal costs, and any change in rate when a fixed or tracker period ends, so your actual payments and the total you repay will be different. The rate you are offered depends on the lender, your deposit, your income, your credit history and the product you choose. Figures are rounded to the nearest pound. On interest only the monthly payment covers the interest alone, so the full loan is still owed at the end of the term and you need a way of repaying it that the lender accepts. Your home may be repossessed if you do not keep up repayments on your mortgage.
How the term changes the monthly payment
A longer term spreads the loan over more months, so each payment is smaller, but you pay interest for longer. At an example 4%, moving from 25 years to 35 years takes the payment from £1,584 to £1,328 a month, while the total repaid rises from about £475,053 to £557,896. Lenders also look at your age at the end of the term, so the longest term on offer is not the same for everyone.
| Term | At an example 4% | At an example 5% |
|---|---|---|
| 25 years | £1,584 | £1,754 |
| 30 years | £1,432 | £1,610 |
| 35 years | £1,328 | £1,514 |
Illustration only. These figures are worked out on a £300,000 mortgage at the example interest rates shown, with the rate staying the same for the whole term and payments made monthly. They are not a quote, not an offer of credit and not the rates lenders are offering today. They leave out product fees, valuation and legal costs, and any change in rate when a fixed or tracker period ends, so your actual payments and the total you repay will be different. The rate you are offered depends on the lender, your deposit, your income, your credit history and the product you choose. Figures are rounded to the nearest pound. On interest only the monthly payment covers the interest alone, so the full loan is still owed at the end of the term and you need a way of repaying it that the lender accepts. Your home may be repossessed if you do not keep up repayments on your mortgage.
At an example 4% over 25 years, a £300,000 repayment mortgage costs about £1,584 a month.
Across my lender panel, 4.5 to 5.5 times income is the usual range: about £54,545 to £66,667 for £300,000.
With a 10% deposit, £300,000 of borrowing goes with a house price of about £333,300.
What salary do you need for a £300k mortgage?
Lenders start with an income multiple. Across my panel, 4.5 to 5.5 times income is the usual accepted range, which for £300,000 means income of about £54,545 to £66,667. I have placed a case at 6 times income, which would bring it down to £50,000, but that is not something to plan around.
The income can be one person’s or two people’s combined. Car finance, loans, card balances and childcare costs all reduce what a lender will offer, because affordability is worked out on what is left each month, not on salary alone. So the figure is decided lender by lender.
| Income multiple | Income needed (single or joint) |
|---|---|
| 4.5 times | £66,667 |
| 5 times | £60,000 |
| 5.5 times | £54,545 |
| 6 times | £50,000 |
How much deposit and stamp duty?
The table works backwards from a £300,000 loan. A 10% deposit goes with a house price of about £333,300; a 25% deposit takes it to £400,000. Every price here is at or under £500,000, so first time buyer relief applies at each deposit level for buyers who qualify.
| Deposit | House price | Deposit amount | Stamp duty, home mover | Stamp duty, first time buyer |
|---|---|---|---|---|
| 10% | £333,300 | £33,300 | £6,665 | £1,665 |
| 15% | £352,900 | £52,900 | £7,645 | £2,645 |
| 25% | £400,000 | £100,000 | £10,000 | £5,000 |
Stamp duty figures use the rates for England and Northern Ireland that apply from 1 April 2025, checked in September 2026, for a main home. Buying an additional property adds a 5% surcharge on top. Scotland and Wales have their own taxes and bands. House prices are rounded to the nearest £100. Your solicitor confirms the exact figure.
First time buyers borrowing £300,000
At this loan size the relief is worth having. On a £352,900 purchase with a 15% deposit, the table shows stamp duty of £2,645 for a first time buyer and £7,645 for a home mover. First time buyer relief applies only when everyone buying has never owned a home, here or abroad, and your solicitor confirms whether you qualify.
Some lenders lend up to 95% loan to value, which on £300,000 of borrowing means a house of about £315,800 and a deposit of £15,800. The list of lenders at 95% is shorter than at 90% or 85%, and lenders price by loan to value band, so the deposit affects the rate as well as the loan. My first time buyer hub brings my first time buyer guides together in one place.
Speak to an expert
Want these figures worked out on your own income, deposit and term? Send me the numbers and I will show you what £300,000 looks like lender by lender.
Repayment, interest only or part and part?
On repayment, each monthly payment covers the interest and part of the loan, so the balance is cleared by the end of the term. On interest only, the payment covers the interest alone, which is why it is lower in the first table, and the full £300,000 is still owed at the end. Part and part splits the loan between the two.
The trade-off is a lower monthly payment against a loan balance that does not shrink. For residential interest only, lenders ask for a repayment method, evidence that your earnings continue into retirement, or both. My interest only mortgages page covers what lenders look for.
If you are looking at a different loan size, I have set out the same figures for a £400k mortgage, and my guide to the salary needed for a £200k mortgage covers smaller loans. For larger borrowing, see my page on high value mortgages in Hampshire.
Which figures apply to you?
The tables show how the numbers behave. Which term, which repayment method and how much deposit suit you depends on your income, your plans and how you weigh the trade-offs above, and working that out is what an advice appointment is for. I work with more than 120 lenders and charge a flat £350 fee, payable on mortgage offer. In my recent cases, offers have typically come through in under two weeks, though timescales vary.
Call me on 01425 203055 or book a 15 minute call.
Need Personal Mortgage Advice?
Every buyer’s situation is different. While this guide explains the general rules, the right mortgage for you depends on your income, deposit, credit history and future plans. If you’d like tailored advice, I can help, with 120+ lenders to choose from.
