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If you're concerned or confused about what to do next, Get In Touch and we'll match you with a Specialist who'll give you the right advice for you and your circumstance. Get Started Be it a retirement flat in Manchester or a 3 bedroom semi in Birmingham, thousands of properties across the UK are valued at around £200,000. Whether you can afford a mortgage at that price, and the repayments, depends on your personal financial situation, the home you’re looking to buy and the deal you can find. The guide below will give you a better idea as to whether a £200,000 mortgage is a feasible amount for you to aim for and how to go about getting one. What are you looking for? 
How much do you need to earn to get a £200,000 mortgage?Most lenders are willing to loan around 4 or 4.5 times your annual income. So, for a £200,000 mortgage, that means yearly earnings of approximately £44,000 would be required. Given the average UK salary sat at £31,772 in 2021 that may seem a bit high but if you’re buying jointly with someone, the £44,000 can be your collective earnings. Some lenders may also be willing to offer 5 times or even 6 times annual salary. In these circumstances it’s best to consult with a broker who would be able to indicate which lenders can offer this and whether you’d likely qualify. The table shows how that might impact what you can borrow. Annual income4x times4.5x times5x times6x times£35,000£140,000£157,500£175,000£210,000£40,000£160,000£180,000£200,000£240,000£45,000£180,000£202,500£225,000£270,000£50,000£200,000£225,000£250,000£300,000£55,000£220,000£247,500£275,000£330,000 If you’d like to test this for yourself, based on your own annual income, take a look at our mortgage affordability calculator below: Mortgage Affordability CalculatorOur affordability calculator can tell you how much you can potentially borrow from a mortgage lender. Simply enter your total household income below and our calculator will do the rest. Your Income Input full salaries for all applicants £ Calculate You could borrow up toMost lenders would consider letting you borrow This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders. Some lenders would consider letting you borrow This is based on 5 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender. A minority of lenders would consider letting you borrow This is based on 6 times your household income, a salary multiple you will struggle to get without a broker. Six-times salary mortgages are usually only available under very specific circumstances. Get Started with an expert broker to find out exactly how much you could borrow. Get Started Speak to an expert about mortgage affordabilityMaximise your chance of approval with a a dedicated specialist broker Get StartedAsk Us A Question Ask Us A Question We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects.
Ask us anything! * How quickly are you looking to proceed? * 1 of 3 Next Which of the below best applies to your situation? What is the approximate value of the property? * £ And how much are you looking to borrow in total? * £ What is the total, approximate annual income of all applicants before tax? * £ Back 2 of 3 Next First name * Last name * Email * Phone number * Back 3 of 3 Send! What will repayments look like?They could be anything from just over £500 to £1500. It all depends on the interest rate you secure and the length of the mortgage term. The standard is 25 years although certain providers are open to terms of varying lengths. Interest rates are usually anywhere between 1.5% and 5% and what one lender might offer for a £200,000 mortgage will differ to another as each has their own criteria for assessing how reliable a borrower you’ll be. The below table gives some hypothetical repayment amounts based on varying term lengths and interest rates. Interest rates – Term length1.5%2.5%3.5%4.5%5.5%20 years£965.09£1,059.81£1,159.92£1,265.30£1,375.7725 years£799.87£897.23£1,001.25£1,111.66£1,228.1730 years£690.24£790.24£1,001.25£1,013.37£1,135.5835 years£612.37£714.99£826.58£946.51£1,074.0340 years£554.34£659.56£774.78£899.13£1,031.54 Ahead of submitting a mortgage application, it’s a good idea to discuss with your broker what term length is best for you and the realistic interest rate you’d be looking at. Mortgage typesAnother factor at play is the type of mortgage you opt for. A fixed rate mortgage sees the interest rate stay the same throughout a pre-specified fixed term, albeit at a slightly higher rate, while a tracker rate will fluctuate depending on a base rate set by the Bank of England. Then there’s an interest-only mortgage where only the interest is repaid each month. The total £200,000 loan would then need to be paid in full at the end of the term. An expert could advise on which repayment method is going to be most favourable for your situation. To play around with some different figures and factor in your own finances, you can use our mortgage repayment calculator which allows you to alter interest rates and extend the term to see how that would affect the monthly repayments on your £200,000 mortgage: Mortgage Repayment CalculatorOur mortgage repayment calculator can tell you how much your mortgage will cost you each month and overall. Enter the amount you’re borrowing, the term length and interest rate, and our calculator will do the rest. Loan Amount Enter the amount you're borrowing £ Mortgage Rate 2.5% is an average figure but the rate you get may vary % Mortgage Term 25 years is average, but most lenders offer longer and shorter terms years This is an interest only mortgage Monthly Repayments: Total amount paid at end of term: Get started with an expert broker to find out how much they could help you save on your mortgage repayments. Get Started We're so confident in our service, we guarantee We know it's important for you to have complete confidence in our service, and trust that you're getting the best chance of mortgage approval at the best available rate. We guarantee to get your mortgage approved where others can't - or we'll give you £100* Get Started Find Out More
How a broker can help you secure a £200,000 mortgageThe mortgage process is complex enough without adding in miscalculations and lofty estimates of what you may or may not be able to borrow. This is where a broker specialising in mortgages in this range can help. They can:
If you get in touch we can arrange for a broker we work with to contact you regarding your requirements for a free, no obligation chat. What other factors can affect your application?Income is just one part of the equation. When assessing whether you’re eligible for a £200,000 mortgage, lenders will also ask for information on:
Rated excellent by our customersAbsolute Fab: I got a mortgage as an ex-bankrupt !!! As an ex-bankrupt with a qualified Annulment I had to take several bridging loans to cover my debt. I found Online Mortgage Advisor who offered fantastic but specific insight to my issues. Within 6 weeks we exchanged contracts and I am now debt-free, and my house is safe. S Bakht They pulled out all the stops Great staff and good communication. Helped us understand the process and gone over and above to help in a difficult situation. Other companies couldn't even be bothered but Thank you so much! Anneke Woolley, 12 days ago Our advisor was amazing from the start! Aaron went above and beyond. He worked late and kept in contact with me and worked tirelessly to find me the best mortgage he could James, 10 days ago Get matched with a mortgage expertWhich mortgage to go for? What salary do you need? Which lender will say yes when faced with a less than perfect applicant? Applying for a £200,000 mortgage means many questions but working with a specialist broker who understands this particular price range removes a substantial amount of the research required. The brokers we work with can offer real-time advice whilst saving you time and money. They already know who offers the best rates for a mortgage in this range, what support might be available to you and can ensure a smooth path to purchasing your new home. Reach out by calling 0808 189 2301 or filling out an enquiry form to get matched with a specialist broker and enjoy a free, no obligation initial consultation. Ask a quick question We can help!
Ask us anything! * How quickly are you looking to proceed? * 1 of 3 Next Which of the below best applies to your situation? What is the approximate value of the property? * £ And how much are you looking to borrow in total? * £ What is the total, approximate annual income of all applicants before tax? * £ Back 2 of 3 Next First name * Last name * Email * Phone number * Back 3 of 3 Send! Article RevisionsCurrent Version September 29, 2022 Peer Reviewed By Jon Nixon, Director of Distribution Edited By Mike Whitehead, Content Editor Related ArticlesMortgage Affordability & the Rule of thumb for Mortgage AmountsRead more What Mortgage Can You Get on Your Salary?Read more Getting a Mortgage for 5x Your SalaryRead more About the author Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background. Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course! Read more about PetePete Mugleston Mortgage Advisor, MD Continue Reading
FCA disclaimer*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it. |
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