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On a £500,000 repayment mortgage over 25 years, the monthly payment is £2,371 at an example rate of 3%, £2,639 at 4% and £2,923 at 5%. On interest only at an example 4%, it is £1,667 a month. These figures are illustrations to show how the payments move with the rate. They are not quotes, and the rate you are offered depends on the lender and your circumstances.
£500k mortgage monthly payments and repayments at different example rates
The table shows the monthly repayment over 25 years, the total you would repay over that time and the interest only payment, at four example rates. Going from an example 4% to 5% adds £284 a month and £85,130 over the full term.
| Example rate | Repayment, per month | Total repaid over 25 years | Interest only, per month |
|---|---|---|---|
| 3% | £2,371 | £711,317 | £1,250 |
| 4% | £2,639 | £791,755 | £1,667 |
| 5% | £2,923 | £876,885 | £2,083 |
| 6% | £3,222 | £966,452 | £2,500 |
Illustration only. These figures are worked out on a £500,000 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 lowers the monthly payment and raises the total interest, because you are borrowing for longer. At an example 4%, taking £500,000 over 35 years instead of 25 brings the payment down from £2,639 to £2,214 a month, but the total repaid rises from £791,755 to £929,827. The longest term a lender allows usually depends on your age when the mortgage ends, and each lender sets its own limit.
| Term | At an example 4% | At an example 5% |
|---|---|---|
| 25 years | £2,639 | £2,923 |
| 30 years | £2,387 | £2,684 |
| 35 years | £2,214 | £2,523 |
Illustration only. These figures are worked out on a £500,000 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%, a £500,000 repayment mortgage over 25 years costs £2,639 a month. Illustration only.
Across my panel, 4.5 to 5.5 times income is the usual range: £90,909 to £111,111 of income for £500,000.
With a 10% deposit, a £500,000 mortgage matches a house price of about £555,600.
What salary do you need for a £500k mortgage?
Across the lenders on my panel, 4.5 to 5.5 times income is the usual accepted range. For £500,000 that means an income of about £90,909 at 5.5 times, up to £111,111 at 4.5 times. I have placed a case at 6 times income, which would bring the figure down to £83,333, but that is one case and not a rule.
The income can be one person or two. Lenders take your committed spending off first, such as loans, car finance, childcare and maintenance, so two people on the same salary can get very different answers. Each lender runs its own affordability model, so the amount you can borrow is worked out lender by lender.
At this level of income, many high street lenders have premier ranges for higher earners, with their own income thresholds and criteria. Whether one is open to you depends on the lender and your income.
| Income multiple | Income needed (single or joint) |
|---|---|
| 4.5 times | £111,111 |
| 5 times | £100,000 |
| 5.5 times | £90,909 |
| 6 times | £83,333 |
How much deposit and stamp duty on a £500k mortgage?
The deposit decides the house price a £500,000 mortgage matches and your loan to value. The table shows both at a 10%, 15% and 25% deposit, with stamp duty for a home mover and a first time buyer.
| Deposit | House price | Deposit amount | Stamp duty, home mover | Stamp duty, first time buyer |
|---|---|---|---|---|
| 10% | £555,600 | £55,600 | £17,780 | No relief (price over £500,000) |
| 15% | £588,200 | £88,200 | £19,410 | No relief (price over £500,000) |
| 25% | £666,700 | £166,700 | £23,335 | No relief (price over £500,000) |
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.
Every price in the table is over £500,000, so first time buyer relief does not apply to any of them. A first time buyer at these prices pays the same stamp duty as a home mover.
Loan to value at this loan size
At around £500,000 some lenders set tighter limits at higher loan to values, for example a lower maximum loan once you go above a certain percentage. The result is that the list of lenders at a 10% deposit is shorter than at 25%. Where those limits sit varies lender by lender, and a bigger deposit can also move you into a lower loan to value band with that lender.
Mortgage on a £500k house
If £500,000 is the house price rather than the loan, the numbers are smaller. The table shows the loan at a 10%, 15% and 25% deposit on a £500,000 house, and the repayment per month over 25 years at example rates of 4% and 5%.
| Deposit | Deposit amount | Loan amount | Repayment per month at an example 4% | Repayment per month at an example 5% |
|---|---|---|---|---|
| 10% | £50,000 | £450,000 | £2,375 | £2,631 |
| 15% | £75,000 | £425,000 | £2,243 | £2,485 |
| 25% | £125,000 | £375,000 | £1,979 | £2,192 |
Illustration only. These figures are worked out on the mortgage amounts shown 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.
A price of exactly £500,000 is still inside first time buyer relief. On the rates in the stamp duty note above, a first time buyer would pay £10,000 and a home mover £15,000. Above £500,000 the relief is lost entirely, not tapered.
Speak to an expert
Looking at a mortgage of around £500,000? Send me your income, deposit and the price range you have in mind, and I will show you how the figures look 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: at an example 4% that is £1,667 a month on £500,000 against £2,639 on repayment, but the full £500,000 is still owed at the end. Part and part splits the loan between the two, so the monthly cost and the balance left at the end both sit in between.
For residential interest only, lenders ask for a repayment method, evidence that your earnings continue into retirement, or both. My guide to interest only mortgages covers how lenders look at this.
For other loan sizes, see the monthly payments on a £400k mortgage and a £600k mortgage, or my high value mortgages page for larger loans.
Which figures apply to you?
The tables use example rates, so the numbers that count are the ones for your income, deposit, term and the lenders open to you. Repayment or interest only, 25 years or 35, a smaller loan or a bigger deposit: the right answer depends on your circumstances and plans, and working that out is what an advice appointment is for.
I work with 120+ lenders and also place cases with private banks. My fee is a flat £350, payable on mortgage offer, whatever the loan size. In my recent cases, offers have 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.
