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How much is a £100,000 mortgage a month?

When considering taking out a £100,000 mortgage, one of the key things to think about is how much it is going to cost you each month. Depending on the size of your deposit and the amount you borrow, your monthly repayments could vary quite considerably.

Of course, the size of your deposit and the length of time you borrow for will have a direct impact on your monthly repayments. So if you were to increase your deposit to 20%, your monthly repayments on a £100,000 mortgage would be lower than if you only put down a 5% deposit.

Similarly, the longer you borrow for, the more interest you will pay over the life of the mortgage but the cheaper it will be each month.

To give you an idea of how much a £100,000 mortgage might cost each month, we’ve put together some examples below.

As a guide only, the tables below provide an indication of monthly payments.

INTEREST ONLY 100k
2%3%4%5%
10 years£166£250£333£416
15 years£166£250£333£416
20 years£166£250£333£416
25 years£166£250£333£416
REPAYMENT 100k
2%3%4%5%
10 years£920£965£1012£1060
15 years£643£690£739£790
20 years£505£554£605£659
25 years£423£474£527£584

The monthly cost of a £100,000 mortgage will vary according to three main factors:

Interest rate

The interest rate you pay on your 100K mortgage will have a big impact on how much your monthly repayments are. The higher the interest rate, the more you will have to pay each month.

If you are on a variable rate mortgage, your monthly payments could go up or down depending on changes to the interest rate. If you are on a fixed rate mortgage, your monthly payments will stay the same for a set period of time, even if the general interest rates go up or down during this time.

Term

The term of your mortgage is the length of time you have to repay the money you have borrowed. The longer the term, the lower your monthly repayments will be, but you will pay more interest overall.

The average mortgage term in the UK is 25 years. However, you can choose to borrow for a shorter or longer period of time if you wish, depending on the lender.

Repayment method

There are two main types of mortgage repayment methods – interest only and repayment. With an interest only mortgage, you only pay the interest on the money you have borrowed each month. You don’t reduce the amount you owe until the end of the mortgage term when you will need to find a lump sum to repay the capital.

With a £100,000 repayment mortgage, you pay back both the interest and some of the capital each month. This means that your monthly repayments are higher than with an interest only mortgage, but you will gradually reduce the amount you owe over the term of the mortgage.

Your choice of repayment method will have a major impact on your monthly repayments for a 100K mortgage. Interest only mortgages tend to have lower monthly payments than repayment mortgages, but you will need to find a lump sum at the end of the mortgage term to repay the capital.


You may find our online mortgage calculator useful for helping to calculate the monthly cost of a mortgage over different terms.

HOW CAN WE HELP?

Choosing a mortgage is an important financial decision and it’s easier with someone who’s on your side. We work as a whole of market mortgage broker so that you get the best possible choice of mortgages.

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DRAKE MORTGAGES ARE EXPERT BUY TO LET MORTGAGE BROKERS

We are perfectly placed to help you find a buy to let mortgage solution that matches your property needs for individuals, families, investors, landlords and Limited Companies.

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We are experienced whole of market brokers who can help you get a great holiday let mortgage.

We can also give you access to exclusive schemes and some specialist lenders who don’t deal direct with borrowers. Loans are available to individuals and SPV’s upto 75% and we can help with Scottish properties, mixed use, multi-lets and Airbnb.

Our holiday let mortgage brokers know the lenders and their lending criteria well, enabling us to guide you to the best holiday let mortgage solutions

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Bridging loans are one of the most useful, multi-purpose, types of lending solutions available. You can get a bridging loan approved on almost any property for almost any reason. Great for auction purchases or snapping up a buy to let bargain.

And we can arrange them really fast.

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Development finance is designed to help with the purchase and build costs for a residential development project.

Solutions are available for change of use, ground-up projects, refurbishment or major building work and property extensions.

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