While £100kis not considered to be a large mortgage sum, it pays to do your research and calculations if you're applying for home finance of this amount.
Here you’ll learn how to calculate therepayments for a mortgage in this ballpark and understand the factors behindthem. We have also included information for those interested in similar mortgage amounts, such as £150kand £175k.
What are the monthly repayments on a 100k mortgage?
At the time of writing (April 2024), the average monthly repayments on a £100,000 mortgage are £585. This is based on current interest rates being in the 5% range, typical terms at 25 years, and the majority of borrowers opting for a capital repayment mortgage.
Based on these monthly repayments, you will have repaid £175,377 by the end of the term.
What if you are borrowing more?
If £100,000 is only a rough estimate for the mortgage amount you need, take a look at the table below to see how higher amounts in this ballpark compare, based on the same variables.
Mortgage Amount | Term Length | Interest Rate | Monthly Repayments | Total Repayments |
£100k | 25 years | 5% | £585 | £175,377 |
£125k | 25 years | 5% | £731 | £219,221 |
£150k | 25 years | 5% | £877 | £263,066 |
£175k | 25 years | 5% | £1,023 | £306,910 |
How to calculate your monthly repayments
You can use our calculator below to find out what the repayments would be if you were to borrow £100,000. This tool can be used to compare different interest rates and term lengths, and the results can be converted into interest-only.
Now that you’ve crunched some numbers your next step is to choose a mortgage deal - get started here to compare rates for free and access expert broker advice
Factors that determine the repayments on a £100k mortgage
We’ve already discussed how the interest rate, term length and mortgage type have a role to play in determining your mortgage repayments. In this section we explore the impact these factors can have on a £100k mortgage with example calculations for added context.
Term length
Increasing or reducing your term length will change the amount you have to repay on your mortgage each month. Longer terms come with lower monthly repayments but can be more expensive overall since you would have more interest instalments to pay.
The table below shows how the term length affects the repayments on a £100k mortgage taken on a capital repayment basis with an example interest rate of 5%.
Mortgage Amount | Term Length | Monthly Repayments | Overall Repayment |
£100k | 15 years | £791 | £142,343 |
£100k | 20 years | £660 | £158,389 |
£100k | 25 years | £585 | £175,377 |
£100k | 30 years | £537 | £193,256 |
£100k | 35 years | £505 | £211,969 |
£100k | 40 years | £482 | £231,454 |
Interest rate
The interest rate you qualify for will depend on the current market conditions and how much risk the mortgage lender feels they are taking on by offering you finance. They will assess this based on factors including the amount of deposit you have and your credit situation.
The mortgage rate is one of the biggest variables that will determine your monthly repayments, and the table below shows what kind of impact it can have on a £100k mortgage.
Mortgage Amount | Interest Rate | Monthly Repayments | Overall Repayment |
£100k | 3.5% | £501 | £150,187 |
£100k | 4% | £528 | £158,351 |
£100k | 4.5% | £556 | £166,750 |
£100k | 5% | £585 | £175,377 |
£100k | 5.5% | £614 | £184,226 |
£100k | 6% | £644 | £193,290 |
Thesecalculations are fora capital repayment mortgage with a 25-year term
Product and repayment type
The type of mortgage product you choose and the repayment type you select will also have a bearing on the interest rate and how you make your interest payments.
Repayment type, in particular, has a major bearing on mortgage repayments. The most common type is capital repayment where you would pay off the loan each month plus interest over the agreed term, and own the property outright when the agreement ends.
A common alternative is interest-only, which only requires you to settle the interest each month and clear the debt itself with an approved repayment vehicle at the end of term.
The table below shows how the repayments would look on a £100,000 mortgage if it was taken out on an interest-only basis, with a range of different rates, over a period of 25 years.
Mortgage Amount | Interest Rate | Interest-only Payments (Monthly) | Overall Repayment |
£100k | 3.5% | £292 | £187,500 |
£100k | 4% | £333 | £200,000 |
£100k | 4.5% | £375 | £212,500 |
£100k | 5% | £417 | £225,000 |
£100k | 5.5% | £458 | £237,500 |
£100k | 6% | £500 | £250,000 |
When it comes to applying for your £100k mortgage, you will also have a choice of product types. Fixed-rate is the most popular in the UK, and these agreements have monthly interest payments that are consistently the same during an introductory rates period, typically 2-5 years. They then revert onto the lender’s standard variable rate (SVR), which is typically higher.
A common alternative is a type of variable rate loan called a tracker mortgage. Interest can move up or down during the term as most are tied to the Bank of England’s base rate.
Read more about fixed-rate and tracker mortgages in our standalone guides
Calculations all done? Here are your options now...
Tips to help you reduce your mortgage repayments
Even though a £100k mortgage is considered a relatively small debt by home finance standards, you will want to ensure you repayments are as affordable as possible, and the tips below will help you get them down to a level that fits your needs and circ*mstances:
- Shop around: The key to getting the best mortgage deal is to shop around the entire market. There could be lenders who are willing to offer you a lower rate and more flexibility with term lengths, but you might miss out on that if you go directly to your bank.
- Be aware of product fees: Some mortgage deals with lower rates also come with a product fee, but the overall cost is what is important. If you do choose to take out a deal with no product fee, be aware of how much it will cost you overall across the term.
- Explore credit building: There are quick ways to build and repair credit ahead of a mortgage application, such as joining the electoral register and checking your credit reports to flag up inaccuracies and outdated information. Optimising your credit files can increase your chances of securing a lower rate, and therefore lower repayments.
- Speak to a mortgage broker: This is the best piece of advice we can offer to anyone applying for a mortgage. They can go through all of the above with you and boost your chances of securing the lowest mortgage rate and the right term length and product type for you. This, in turn, means you will stand the best chance of landing an affordable deal.
How to get a £100,000 mortgage
After running those initial calculations, you can choose your own mortgage deal through Teito for free. Not only can you quickly access rates from across the market, we have expert mortgage brokers on hand to offer advice and help you complete your application.
Here are just some of the benefits of choosing Teito for your £100k mortgage:
- You can access exclusive rates and deals
- We are rated 5 stars on leading review websites
- Our brokers are whole-of-market and experts in their field
- It takes just minutes to secure a mortgage in principle
Ready to choose your own mortgage and take advantage of a free, no obligation chat with a Teito mortgage broker? Get started here!
FAQs
It is possible to get approved if all of the mortgage applicants have a combined income within the £18,000 to £25,000 range. This is because mortgage lenders tend to cap maximum borrowing anywhere between 4 and 5.5 times salary, although 4.5 is a typical limit for most
This will not be calculated by the size of the mortgage but the value of the property. Most lenders will ask you for a deposit of at least 5-10% of that for a residential mortgage.
If the house itself has a purchase price of £100,000, you wouldn’t need a mortgage for the full amount. You would need to put down at least £5-10K in deposit and borrow the rest.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
