What is the monthly repayment on a £160,000 mortgage?
The monthly repayments on your £160,000 mortgage will depend on many factors, including the deposit and mortgage term. To help you calculate the affordability of your £160,000 mortgage, see our comparison table below.
£160,000 mortgage repayments
| Interest rate
| 20 years
| 25 years
| 30 years
| 35 years
Your home may be repossessed if you do not keep up repayments on your mortgage.
Figures are based on a repayment mortgage, not an interest only mortgage and calculated with Money Advice Service's mortgage calculator.
How much deposit is needed for a £160,000 mortgage?
Mortgage lenders generally offer to lend to clients who can provide a minimum deposit of 10%. However, some lenders will accept a deposit as low as 5%, equating to £8,000, while others may prefer a 15% deposit, totalling £24,000 - it all depends on their individual lending requirements. Offering a higher deposit decreases your Loan-to-Value ratio, giving you more flexibility with mortgage deals. Nottingham Mortgage Services advisers would be happy to give you options based on your circumstances.
Many other factors will affect your eligibility for a mortgage, including your credit history or employment history, so be sure to take these into account when you speak to your mortgage adviser.
Can I afford a £160,000 mortgage?
The monthly repayments on your £160,000 mortgage will depend on the flexibility of the deal from your mortgage lender. You could secure a better offer by presenting the best case to your lender, for example, demonstrating a strong credit history. Lenders will look at a few different factors, including the initial deposit and your monthly salary. You must be able to prove that you can pay off the monthly repayments each month, so you’ll need at least three months of payslips, and bank statements.
Your salary should also be sufficient to cover your monthly repayments. When you meet with one of our advisers, you’ll be asked to present at least three months’ worth of payslips, or self-employed tax statements. They will not offer you a mortgage deal if they don't think that you will be able to afford the monthly repayments.
If you’d like a better idea of the monthly payments for your circumstance and a £160,000 mortgage, try our mortgage and deposit calculators.
Frequently Asked Questions
Does being self-employed affect getting a £160,000 mortgage?
Many mortgages are awarded to applicants based on their yearly salary. As such, self-employed applicants may struggle to find a lender for a £160,000 mortgage as their wages may not be as regular as a PAYE applicant. £160,000 is a substantial amount for lenders, so they will need extra reassurance from a self-employed borrower.
If you are self-employed, this should not stop you from applying, but you may need to provide additional evidence of your income. Present at least two years’ worth of accounts to your mortgage adviser, and any details of ongoing contracts such as retainer clients. An accountant can help you to present your case, and our advisers will always find you the best deal.
The good news is, it’s not impossible. You’ll need to show your lender between one to three years of accounts to prove you have sufficient profit and income from your business and demonstrate your ability to come up with the deposit. If you've sent your Self-Assessment tax return to HMRC for the past 4 years Tax Overviews or a SA302 should be sufficient. You can also show them work records, for example details of upcoming projects or retained accounts. Ask an accountant to help you with your documents and accounts and you can always consult a Nottingham Mortgage Services adviser if you’re not sure what the lenders will ask for upon application.
What income do I need for a £160,000 mortgage?
Salaries are one of the biggest deciders for mortgage lenders. Typically, lenders are willing to offer three or more times your household’s yearly income, sometimes up to four, but this could be reduced if you have other outstanding debts and dependents. However, it is always advisable to put down a higher deposit, particularly on a mortgage that is on the smaller side, like £160,000. This will increase your Loan-to-Value ratio and may give you more choice and more flexible mortgage deals. Nottingham Mortgage Services advisers can guide you on the right product for your monthly income.
Can you get £160,000 Buy to Let mortgages?
Many Buy to Let mortgages are interest-only, and come with their own specific terms. Namely, you may have to already own another property, and you should be prepared to pay a 25% deposit. Therefore, while you can apply for this type of mortgage at £160,000, there may be more costs in the short-term, plus longer-term higher interest rates.
Can you get £160,000 interest-only mortgages?
An interest-only mortgage requires you to pay off the value of your loan once the term of interest payments has come to an end. Over the term of the mortgage, you only repay the interest of the loan. No capital is repaid unless you make over payments. You will be required to pay off the balance on expiry of the term.
Many Buy to Let mortgages are interest-only, so you may be able to use any saved income from rent payments to cover this final sum.
Apply for a £160,000 mortgage
Specialist mortgage brokers will search through our own mortgages, plus rates of over 60 other approved lenders, to secure the right deal for your £160,000 mortgage. To find out more, get in touch with us or visit your local branch.
Some Buy-to-let mortgages are not regulated by the Financial Conduct Authority
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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