£275,000 Mortgage Monthly Payments
Compare monthly repayments across different rates and terms
Monthly Payments by Rate & Term
| Interest Rate | Term | Monthly Payment | Total Repaid | Total Interest |
|---|---|---|---|---|
| 3.5% | 20 years | £1,595 | £382,774 | £107,774 |
| 3.5% | 25 years | £1,377 | £413,013 | £138,013 |
| 3.5% | 30 years | £1,235 | £444,553 | £169,553 |
| 4.0% | 20 years | £1,666 | £399,948 | £124,948 |
| 4.0% | 25 years | £1,452 | £435,465 | £160,465 |
| 4.0% | 30 years | £1,313 | £472,640 | £197,640 |
| 4.5% | 20 years | £1,740 | £417,550 | £142,550 |
| 4.5% | 25 years | £1,529 | £458,562 | £183,562 |
| 4.5% | 30 years | £1,393 | £501,617 | £226,617 |
| 5.0% | 20 years | £1,815 | £435,571 | £160,571 |
| 5.0% | 25 years | £1,608 | £482,286 | £207,286 |
| 5.0% | 30 years | £1,476 | £531,454 | £256,454 |
| 5.5% | 20 years | £1,892 | £454,006 | £179,006 |
| 5.5% | 25 years | £1,689 | £506,622 | £231,622 |
| 5.5% | 30 years | £1,561 | £562,111 | £287,111 |
| 6.0% | 20 years | £1,970 | £472,846 | £197,846 |
| 6.0% | 25 years | £1,772 | £531,549 | £256,549 |
| 6.0% | 30 years | £1,649 | £593,554 | £318,554 |
£275,000 Mortgage - At a Glance
- Monthly Payment (4.5%, 25yr)
- £1,529
- Total Repaid Over 25 Years
- £458,562
- Total Interest Paid
- £183,562
- Interest as % of Loan
- 66.7%
- Property Value (90% LTV)
- £305,556
- Deposit Needed (10%)
- £30,556
- Salary Needed (4.5x)
- £61,111
Understanding a £275,000 Mortgage
A £275,000 mortgage represents the mainstream UK property market, covering typical family homes across most regions outside central London. At 4.5% over 25 years, you would pay £1,529 per month, totalling £458,562 over the full term.
The interest component on this mortgage is significant: £183,562 over 25 years. This illustrates why securing the best possible rate is crucial. The difference between 3.5% and 6.0% on £275,000 is £395 per month, or £4,741 per year. Over 25 years, that rate difference costs £118,534 in additional interest.
To borrow £275,000, you typically need a household income of at least £61,111. With a 10% deposit (£30,556), this gives you access to properties around £305,556. Saving a 15% deposit instead (£48,529 on a £323,529 property) unlocks significantly better rates from most lenders.
At this mortgage level, consider whether overpayments make financial sense. Most lenders allow 10% overpayment per year without penalty. Overpaying just £153 per month on a £275,000 mortgage at 4.5% could save you over £22,027 in interest and reduce your term by approximately 2-3 years.
Mortgage Tips for £275,000 Borrowers
Remortgage to Save
If you are on your lender's Standard Variable Rate (SVR), you are likely paying 1-2% above the best available rates. On £275,000, switching from a 6% SVR to a 4.5% fixed rate saves £243 per month (£2,919 per year). Factor in arrangement fees (typically £500-£1,500) and exit fees when calculating if switching is worthwhile.
Offset Mortgage Consideration
An offset mortgage links your savings to your mortgage, reducing the balance you pay interest on. If you have £27,500 in savings, offsetting this against your £275,000 mortgage at 4.5% saves £103 per month in interest while keeping your savings accessible. This is particularly effective for higher-rate taxpayers who would otherwise pay 40% tax on savings interest.
Consider Term Length Carefully
Extending from 25 to 30 years on £275,000 reduces monthly payments by £135 but adds £43,057 in total interest. Conversely, shortening to 20 years increases payments by £211 per month but saves £41,013 in interest.
Mortgage Insurance
With monthly payments of £1,529, ensure you have adequate income protection or life insurance. If you or your partner were unable to work, you would need to cover this amount plus other household costs. Critical illness cover and income protection are particularly important at this mortgage level. A policy paying £2,293 per month would typically cost £30-£60 monthly depending on age and health.
What If? Scenarios for £275,000 Mortgage
If Interest Rates Drop by 1%...
A 1% rate reduction (from 4.5% to 3.5%) would reduce your monthly payment from £1,529 to £1,377, saving £152 per month (£1,822 per year). Over 25 years, this saves £45,547 in total interest. With the Bank of England base rate at 4.5%, rate movements depend on inflation and economic conditions.
If You Overpay by 10% Each Month...
Increasing your payment from £1,529 to £1,681 (an extra £153 per month) could reduce your mortgage term by approximately 4 years and save around £33,041 in interest. Most lenders allow 10% annual overpayment without penalty during a fixed-rate period. Check your specific mortgage terms before overpaying.
20-Year vs 30-Year Term...
Choosing a 20-year term costs £1,740 per month (an extra £211 vs 25 years) but saves £41,013 in total interest. A 30-year term reduces payments to £1,393 per month (saving £135) but costs an extra £43,057 in interest over the life of the mortgage. The right choice depends on your monthly budget and long-term financial goals.
Frequently Asked Questions: £275,000 Mortgage
How much are monthly payments on a £275,000 mortgage?
At 4.5% interest over 25 years, monthly payments on a £275,000 mortgage are £1,529. At 3.5%, payments drop to £1,377. At 6.0%, they rise to £1,772. The exact rate you receive depends on your deposit size, credit score, and income.
What salary do I need for a £275,000 mortgage?
Most UK lenders offer mortgages at 4-4.5 times your annual income. For a £275,000 mortgage, you would typically need a household income of approximately £61,111. Joint applicants can combine incomes. Some lenders for professionals (doctors, lawyers) may offer up to 5.5x, requiring £50,000.
How much deposit do I need for a £275,000 mortgage?
The minimum deposit is typically 5% (£14,474 on a £289,474 property). However, a 10% deposit (£30,556 for a £305,556 property) unlocks better rates, and 25% LTV (£91,667) gives access to the lowest rates available. A larger deposit significantly reduces your monthly payments and total interest.
How much interest will I pay on a £275,000 mortgage?
Over 25 years at 4.5%, total interest on £275,000 is £183,562. You would repay £458,562 in total. Reducing the rate by just 0.5% saves approximately £23,096 in interest over the full term.
Should I get a fixed or variable rate mortgage for £275,000?
A fixed rate on £275,000 gives payment certainty - your £1,529 payment will not change during the fixed period (typically 2 or 5 years). A variable or tracker rate starts lower but can increase if the Bank of England raises rates. At the current base rate of 4.5%, if rates rise by 1%, your payment could increase by approximately £160 per month.
Can I get a £275,000 interest-only mortgage?
Interest-only payments on £275,000 at 4.5% would be approximately £1,031 per month (vs £1,529 on repayment). However, the full £275,000 must be repaid at the end of the term. Most lenders require a clear repayment strategy (investments, property sale, pension) and typically restrict interest-only to 75% LTV or less.
Side-by-Side Mortgage Comparison
Affordability Check: £275,000 Mortgage
Before applying for a £275,000 mortgage, it is essential to understand whether the repayments are sustainable for your household. UK lenders use income multiples and stress testing to assess affordability. Below is a comprehensive breakdown of the key affordability metrics for this mortgage amount.
| Affordability Metric | Value |
|---|---|
| Required Salary (4.5x multiple) | £61,111 |
| Required Salary (4x conservative) | £68,750 |
| Monthly Payment at 4.5% over 25 years | £1,529 |
| Stress Test Payment at 7.5% (+3%) | £2,032 |
| Maximum Housing Cost (35% of gross monthly) | £4,367 |
| Salary Needed for 35% Rule | £52,407 |
Most UK lenders do not simply use the advertised rate when assessing affordability. Instead, they apply a stress test, typically at the current rate plus 3 percentage points. For a £275,000 mortgage, this means your lender will check whether you can afford monthly payments of £2,032 (at 7.5%), not just the £1,529 you would actually pay at 4.5%. This stress test ensures borrowers can cope if interest rates rise significantly during the mortgage term.
Lender affordability assessments go beyond simple income multiples. They examine your regular committed expenditure, including credit card payments, car finance, childcare costs, and other loans. Even if your income meets the multiple, high outgoings can reduce the amount you can borrow. Reducing or clearing existing debts before applying can significantly improve your borrowing capacity.
The 35% rule is a widely used affordability guideline suggesting that no more than 35% of your gross monthly income should go towards housing costs. For monthly payments of £1,529, this means you would need a gross annual salary of at least £52,407 to comfortably afford this mortgage without stretching your finances.
How We Calculate Mortgage Payments
Our mortgage calculations use the standard amortisation formula used by UK lenders. Monthly payments are calculated as: P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of payments. We show repayment mortgages (capital and interest). Interest-only payments would be lower but require a separate repayment strategy. Rates shown are illustrative; actual rates depend on your LTV ratio, credit score, and chosen lender.
Last verified: February 2026 | Reviewed by: UK Calculator Editorial Team | Base rate reference: Bank of England 4.5%
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Understanding UK Mortgages: A Complete Guide
A mortgage is a long-term loan secured against a property. In the UK, most mortgages run for 25 to 35 years, during which you make monthly payments covering both the capital (the amount borrowed) and the interest charged by the lender. The amount you can borrow, the interest rate you receive, and your monthly repayments all depend on several key factors including your income, deposit size, credit history, and the type of mortgage product you choose.
Types of UK Mortgages
Understanding the different mortgage types available is essential for making the right choice:
- Fixed-rate mortgages (2, 3, 5 or 10 year) – Your interest rate stays the same for the fixed period, giving you predictable monthly payments regardless of what happens to the Bank of England base rate. Most popular choice for budgeting certainty.
- Tracker mortgages – The rate follows the Bank of England base rate plus a set margin (e.g. base rate + 0.75%). Your payments move up or down as the base rate changes, offering transparency but less predictability.
- Standard Variable Rate (SVR) – The lender's default rate, which you typically move onto after a fixed or discount deal ends. SVRs are usually the highest rates available and can change at any time at the lender's discretion.
- Discount mortgages – A reduction off the lender's SVR for a set period (e.g. SVR minus 1.5% for 2 years). Payments can still vary because the underlying SVR can change.
- Offset mortgages – Your savings are linked to your mortgage balance, reducing the amount on which interest is calculated. For example, with £30,000 in savings offset against a £200,000 mortgage, you only pay interest on £170,000. Your savings remain accessible but earn no interest.
Loan-to-Value (LTV) and Interest Rates
Your loan-to-value ratio – the percentage of the property price you borrow – is one of the biggest factors affecting the interest rate you are offered. A lower LTV means a larger deposit and typically better rates:
| LTV Band | Deposit Example (£250k property) | Typical Rate Impact |
|---|---|---|
| 95% LTV | £12,500 deposit | +0.5–1.0% above best rates |
| 90% LTV | £25,000 deposit | Competitive rates available |
| 85% LTV | £37,500 deposit | Good rate improvement |
| 75% LTV | £62,500 deposit | Best rates generally available |
| 60% LTV | £100,000 deposit | Lowest rates on the market |
How Lenders Assess Affordability
UK lenders do not simply multiply your salary to determine how much you can borrow. They conduct a thorough affordability assessment that includes:
- Income multiples – Most lenders offer 4 to 4.5 times your gross annual income as a starting point. Some specialist lenders may stretch to 5 or 5.5 times for certain professions.
- Stress testing – Lenders must check you can afford payments if rates rise by approximately 3 percentage points above the revert rate. This is a regulatory requirement from the Financial Conduct Authority.
- Existing debts and commitments – Credit card balances, car finance, student loans, childcare costs, and other regular outgoings are all factored in. Reducing debts before applying can increase your borrowing power.
Overpayment Benefits
Most UK mortgage lenders allow you to overpay up to 10% of your outstanding balance each year without incurring early repayment charges. Overpaying has two powerful benefits: it reduces the total interest you pay over the life of the mortgage, and it shortens the term, meaning you become mortgage-free sooner. Even modest regular overpayments can save thousands of pounds and shave years off your mortgage. Always check your specific mortgage terms before making overpayments, as exceeding the allowance during a fixed-rate period may trigger penalty charges.
Common Mortgage Questions
What is the current Bank of England base rate?
The current Bank of England base rate is 4.5% (as of February 2026). Tracker mortgages follow this rate plus a margin set by the lender. Fixed-rate mortgages are priced independently by lenders based on swap rates and market conditions, so they do not move directly with the base rate.
Should I get a fixed or variable rate mortgage?
A fixed-rate mortgage gives you certainty – your monthly payments will not change during the fixed period, making it ideal if you want predictable budgeting. A variable or tracker rate can be cheaper initially but carries the risk of rate increases if the Bank of England raises the base rate. Consider your risk tolerance, how long you plan to stay in the property, and whether you could afford higher payments if rates rise. Many borrowers choose a 2 or 5 year fixed deal and then reassess when the fixed period ends.
Can I switch my mortgage to get a better rate?
Yes, this is called remortgaging. You can switch to a new deal either with your existing lender (a product transfer) or with a different lender when your fixed or discount period ends to avoid early repayment charges. When comparing deals, factor in arrangement fees (typically £500–£1,500), valuation fees, and any legal costs to ensure that switching genuinely saves you money overall. A mortgage broker can help you compare the full market.