£250,000 Mortgage Monthly Cost 2026 — Repayment Tables by Rate & Term
Monthly cost of a £250,000 mortgage in 2026: from £1,316 (4% over 25yr) to £1,610 (6% over 25yr). Full repayment tables by interest rate, term, and LTV band.
Monthly repayment tables
Repayment mortgage — monthly cost by rate and term
| Interest rate | 20 years | 25 years | 30 years | 35 years |
|---|---|---|---|---|
| 3.5% | £1,449 | £1,251 | £1,123 | £1,040 |
| 4.0% | £1,515 | £1,319 | £1,194 | £1,113 |
| 4.5% | £1,582 | £1,389 | £1,267 | £1,189 |
| 5.0% | £1,650 | £1,461 | £1,342 | £1,268 |
| 5.5% | £1,719 | £1,534 | £1,419 | £1,348 |
| 6.0% | £1,790 | £1,610 | £1,499 | £1,432 |
| 6.5% | £1,861 | £1,687 | £1,580 | £1,517 |
Mortgage Calculator
Calculate monthly mortgage payments, total interest, and full repayment cost.
Open Mortgage calculatorInterest-only mortgage — monthly cost by rate
| Interest rate | Monthly payment | Annual interest |
|---|---|---|
| 3.5% | £729 | £8,750 |
| 4.0% | £833 | £10,000 |
| 4.5% | £938 | £11,250 |
| 5.0% | £1,042 | £12,500 |
| 5.5% | £1,146 | £13,750 |
| 6.0% | £1,250 | £15,000 |
Interest-only mortgages require a credible repayment vehicle (ISA, investments, property sale) and are now largely restricted to buy-to-let or high-net-worth borrowers.
Typical UK mortgage rates in 2026
Current market pricing as of 2026 for a £250,000 mortgage with a 25% deposit (75% LTV):
| Product type | Typical rate | Fixed period | Notes |
|---|---|---|---|
| 2-year fixed | 4.6–5.0% | 2 years | Higher monthly security premium |
| 5-year fixed | 4.4–4.8% | 5 years | Most popular product in 2026 |
| 10-year fixed | 4.5–5.0% | 10 years | Long certainty, limited flexibility |
| Tracker (base + x%) | 4.5–5.0% | Lifetime | Follows Bank of England base rate |
| Standard variable | 7.0–8.5% | n/a | Never stay on SVR if avoidable |
Rates increase at higher LTV (lower deposit). At 90% LTV (10% deposit) expect rates approximately 0.5–1.0 percentage points higher.
What salary do you need?
Lenders assess affordability using an income multiple. For a £250,000 mortgage:
| Income multiple | Single income needed | Joint income needed (equal split) |
|---|---|---|
| 3.5× | £71,429 | £35,714 each |
| 4.0× | £62,500 | £31,250 each |
| 4.25× | £58,824 | £29,412 each |
| 4.5× | £55,556 | £27,778 each |
| 5.0× (select lenders) | £50,000 | £25,000 each |
Most high-street lenders sit at 4–4.5×. Professional mortgages (for doctors, lawyers, accountants with predictable career trajectories) can reach 5–5.5× with specialist lenders.
LTV bands and deposit requirements
The purchase price at each LTV for a £250,000 mortgage:
| LTV | Deposit required | Property value | Rate tier |
|---|---|---|---|
| 95% | £13,158 (5%) | £263,158 | Highest rates available |
| 90% | £27,778 (10%) | £277,778 | Standard market rates |
| 85% | £44,118 (15%) | £294,118 | Moderate improvement |
| 80% | £62,500 (20%) | £312,500 | Better rates |
| 75% | £83,333 (25%) | £333,333 | Best high-street rates |
| 60% | £166,667 (40%) | £416,667 | Lowest rates available |
The jump from 90% to 85% LTV (finding an extra ~£16,000 deposit) typically reduces your rate by 0.2–0.4%, saving £40–£80/month over the mortgage term.
Total cost over the full term
At 5% over 25 years, the total cost of a £250,000 mortgage:
| Component | Amount |
|---|---|
| Capital repaid | £250,000 |
| Total interest paid | £188,346 |
| Total repaid | £438,346 |
Comparison by term at 5%:
| Term | Monthly | Total interest | Total cost |
|---|---|---|---|
| 20 years | £1,650 | £146,011 | £396,011 |
| 25 years | £1,461 | £188,346 | £438,346 |
| 30 years | £1,342 | £233,113 | £483,113 |
| 35 years | £1,268 | £283,548 | £533,548 |
A 35-year term reduces the monthly payment by £193 vs 25 years, but costs an additional £95,202 in total interest.
The cost of overpaying
Overpaying on a £250,000 mortgage at 5% over 25 years:
| Monthly overpayment | Years saved | Interest saved | New term |
|---|---|---|---|
| £100/month | 2.2 years | £16,900 | ~22.8 years |
| £200/month | 4.1 years | £29,800 | ~20.9 years |
| £500/month | 8.0 years | £57,500 | ~17 years |
| £1,000/month | 12.3 years | £82,700 | ~12.7 years |
Most mortgage contracts allow overpayments of up to 10% of the outstanding balance per year without an early repayment charge. Check your mortgage terms before overpaying.
Stamp Duty on a £250,000–£333,000 purchase
For a £250,000 mortgage, the property value depends on your deposit:
| Property value | First-time buyer (2026) | Home mover (2026) |
|---|---|---|
| £263,158 (5%) | £0 | £1,657 |
| £277,778 (10%) | £0 | £3,889 |
| £312,500 (20%) | £0 | £6,250 |
| £333,333 (25%) | £1,667 | £8,167 |
First-time buyers pay zero Stamp Duty on properties up to £425,000 in 2026/27.
Stamp Duty Calculator
Calculate Stamp Duty Land Tax (SDLT) for your property purchase in England.
Open Stamp Duty calculatorSummary: £250,000 mortgage key figures
| Scenario (repayment) | Monthly cost | Total interest | Total cost |
|---|---|---|---|
| 4% / 25 years | £1,319 | £145,791 | £395,791 |
| 4.5% / 25 years | £1,389 | £166,694 | £416,694 |
| 5% / 25 years | £1,461 | £188,346 | £438,346 |
| 5.5% / 25 years | £1,534 | £210,258 | £460,258 |
| 6% / 25 years | £1,610 | £232,923 | £482,923 |
| 5% / 30 years | £1,342 | £233,113 | £483,113 |
Use the mortgage calculator to model your exact scenario with your deposit, property value, and current rate.
Frequently asked questions
What is the monthly cost of a £250,000 mortgage?
At 4.5% over 25 years, a £250,000 repayment mortgage costs £1,376/month. At 5% over 25 years it is £1,461/month. At 5.5% it is £1,534/month and at 6% it is £1,610/month. Over 30 years the monthly cost falls: £1,267 at 4.5%, £1,342 at 5%.
What salary do I need for a £250,000 mortgage?
Most lenders use a 4–4.5× income multiple. At 4× you need £62,500 income; at 4.5× you need £55,556. For a joint mortgage, the combined income counts. A few lenders offer 5× to professionals, requiring £50,000 income.
How much deposit do I need for a £250,000 mortgage?
The minimum is typically 5% (£12,500). A 10% deposit (£25,000) gives access to better rates. A 25% deposit (£62,500) unlocks the lowest available rates. The purchase price at each LTV: 5% deposit = £263,158 property value; 10% = £277,778; 25% = £333,333.
How much interest do you pay on a £250,000 mortgage over 25 years?
At 5% interest, you pay approximately £187,830 in total interest over a 25-year term — £437,830 total repaid on a £250,000 loan. At 4.5% the total interest is approximately £162,800. Overpaying reduces this significantly.
What is the monthly repayment on a £250,000 interest-only mortgage?
Interest-only monthly payments: £833/month at 4%, £1,042/month at 5%, £1,250/month at 6%. You are not repaying capital, so the full £250,000 remains outstanding at the end of the term.
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