If you’re looking for a £250,000 mortgage, your monthly repayments will vary depending on your mortgage term, interest rates and the size of deposit that you have to put down. To help you get an idea of what your repayments could be, see the comparison table below.
£250,000 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 £250,000 mortgage?
Lenders generally offer mortgages to those who can provide a minimum deposit of 10%. However, some lenders will accept a deposit as low as 5%. This would equate to £12,500 for a £250,000 mortgage but bear in mind that your monthly repayments will be higher with a lower deposit. Other lenders may prefer up to a 15% deposit which would be £37,500 for a £250,000 mortgage but every lender is different and there are lots of factors that contribute to whether your mortgage application will be accepted.
The other factors that will affect your eligibility for a mortgage include your household income and your credit and employment history as well as any debts that you may have, so be sure to take these into account when you speak to your mortgage adviser.
Can I afford a £250,000 mortgage?
Affording a £250,000 mortgage will depend on many factors, including your initial deposit. £250,000 is a substantial sum and lenders will need sufficient evidence that you can afford the monthly repayments before they accept your application. Firstly, you’ll need a household income that can adequately cover the monthly repayments and a larger deposit will also support your case.
You should calculate your monthly salary, take into account any other regular outgoings that you have and compare this to the monthly payments, bearing in mind mortgage terms and interest rates. The availability of a mortgage may also depend on your credit history. If you have other outstanding credit, such as credit cards, store cards, loans, finance, car leases, or a history of late payments you may not be offered as many options for a mortgage as you may like.
To help you assess the affordability of your £250,000 mortgage, try our mortgage and deposit calculators.
Frequently asked questions
Does being self-employed affect getting a £250,000 mortgage?
Salary is one of the biggest determiners of your eligibility for a mortgage which means that certain lenders may be reluctant to offer a mortgage to those who are self-employed. If you are self-employed and cannot demonstrate that you earn enough annually to cover your repayments, you may struggle but it's definitely not impossible to get on the property ladder.
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. Read our self-employed mortgage guide for some more tips on this scenario.
What income do I need for a £250,000 mortgage?
If you’re a PAYE earner, mortgage lenders will generally award up to four times your annual salary. If you do not currently earn this, you could consider applying for the mortgage with somebody else, such as a spouse. The mortgage lender will factor in your household income, but you should make sure you can afford the payments together. Check out our managing money as a couple article if you're interested in being more open with your other half about your finances.
Can you get £250,000 Buy to Let mortgages?
There is no upper limit to Buy to Let mortgages, but you may find that some lenders are hesitant to offer a £250,000 Buy to Let mortgage without a significant deposit. 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 £250,000, there may be more costs in the short-term, plus longer terms and higher interest rates. Many factors can affect your application, including your age and income as well as the credit and employment factors that we have previously mentioned.
Can you get £250,000 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 £250,000 mortgage
Nottingham Mortgage Services advisers will search through over 60 approved lenders, including lots of high street banks and other building societies, to secure the right deal for your £250,000 mortgage. To find out more, get in touch or visit your local branch.
More mortgage repayment guides
Looking for a different mortgage? Find the answers to your questions with our range of mortgage repayment guides.
Repayments on £30,000
Repayments on £50,000
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
Last updated on: