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Securing a £350,000 Mortgage: Essential Guide to Approval and Monthly Repayments

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    While the UK’s average mortgage hovers around £200,000, achieving a £350,000 mortgage is feasible with the right income and deposit. Read on to learn more about how much the repayments for a £350,000 mortgage will be, and then contact our team of mortgage brokers to explore your mortgage options.

    How Much Do I Need to Earn to Get a Mortgage of £350,000 UK?

    To qualify for a £350,000 mortgage, lenders typically require an annual income 4 to 5 times your yearly earnings, alongside a review of your credit history and deposit size. This means to secure a £50,000 mortgage you’d need an income between £70,000 and £87,500. These figures are based on common lending criteria that assess your ability to afford mortgage repayments while managing other financial responsibilities. Keep in mind, lenders will also consider your credit history, debt-to-income ratio, and other personal financial factors during the application process.

    Exploring Joint Income Mortgages? Understand how combined earnings boost your £350,000 mortgage eligibility. Joint applicants can combine incomes to reach this target, broadening eligibility for the mortgage and potentially making monthly repayments more affordable.

    In 2023, the UK’s average employee salary was £29,669 (ONS), critical for assessing £350,000 mortgage affordability.

    Joint mortgage applicants with the average full-time salary (£34,963 each) reach a combined income of £69,926, nearing the threshold for £350,000 mortgage qualification. Using this average income data with the common mortgage income multiple of 4.5x, the approximate mortgage they could afford is around £314,667.

    Considering this, to secure a mortgage of £350,000, applicants would need a joint income modestly above the average for full-time workers.

    Discover How Much Can You Borrow for a Mortgage here >

    What Are the Monthly Repayments for a £350,000 Mortgage?

    Understanding monthly repayments for a £350,000 mortgage is crucial, with factors like your credit score, deposit size, and interest rate type impacting your monthly outgo. Based on a mortgage rate of 4.5% over a 25-year term, your monthly repayments could be approximately £1,957. Keep in mind, the exact amount can vary based on a range of personal financial factors, including:

    • Your credit score: A higher credit score may help you secure a lower interest rate.
    • Deposit: A larger deposit reduces the principal loan amount, potentially lowering your monthly repayments.
    • Loan term: Extending or shortening your loan term affects your monthly payments and total interest paid.
    • Interest rate type: Fixed-rate mortgages offer stable payments, while variable-rate mortgages can change over time.

    Remember, the best way to get an accurate estimate is to consult with a mortgage advisor who can consider your unique financial situation and preferences.

    Looking to understand the monthly repayments on a certain loan amount? Our team is here and ready to answer any questions you have about the overall cost of your mortgage. Get started today by utilising our fast mortgage calculator for an estimate of what £350k would be per month in terms of payments. For further assistance, don’t hesitate to reach out—we are always happy to provide professional advice!

    Mortgage Repayment Calculator UK

    To get an estimated figure, use the mortgage repayment calculator below.

    How do mortgage interest rates affect the £350,000 mortgage repayments?

    Residential mortgage rates vary widely, typically between 2% and 6%, influenced by your deposit size, credit history, and chosen mortgage type. The rate you are offered will depend on how much deposit you have, your credit history, and the mortgage type. The higher the monthly interest rate, the higher your monthly repayment will be. Therefore, it’s crucial to take the necessary steps to secure a lower interest rate on your mortgage to reduce the monthly repayment interest total.

    Lower your £350,000 mortgage monthly interest payments through:

    • Increasing the size of your deposit
    • Improving your credit score
    • Choosing your loan term carefully
    • Shopping around for a more affordable mortgage

    The table and graph below show how the interest rate and loan term can affect the monthly repayments each month on a £350k mortgage. These are example calculations only, as your actual repayments may vary.

    Loan Term (in years) 2% 3% 4% 5% 6%
    20 £1,771 £1,941 £2,121 £2,310 £2,508
    25 £1,483 £1,660 £1,847 £2,046 £2,255
    30 £1,294 £1,476 £1,671 £1,879 £2,098
    35 £1,159 £1,347 £1,550 £1,766 £1,996
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    How does the mortgage term affect repayments on a £350,000 mortgage?

    Mortgages are usually 25 years in length, but you can take out a mortgage over a shorter or a longer term if you prefer.

    It’s sometimes advisable to opt for a longer term as this is one way to reduce your monthly repayments. This will help you make savings each month, although it’s worth noting that the total capital repayment of your mortgage will be larger due to the extra and total interest paid over the lifetime of the loan.

    Short-term mortgages come with lower interest rates, but the monthly repayment will be higher because the mortgage will be spread over a smaller period.

    When deciding on the loan term, it is advisable to consider how much you can feasibly afford to pay each month. The table and graph below illustrates how much you will be expected to pay on a £350k mortgage at 4.5%% interest between 5 and 30 years.

    Term (years) Monthly Repayment Interest Paid Total Repaid
    30 years £1,773 £288,423 £638,423
    25 years £1,945 £233,624 £583,624
    20 years £2,214 £181,425 £531,425
    15 years £2,677 £131,946 £481,946
    10 years £3,627 £85,281 £435,281
    5 years £6,525 £41,503 £391,503

    How does the mortgage type affect repayments on a £350,000 mortgage?

    The interest on your mortgage will be calculated differently depending on the type of mortgage you choose.

    Which mortgage types affect mortgage monthly repayments?

    Below we cover the 3 most common mortgage types and how they could affect how much you pay towards your mortgage every month.

    Fixed-rate mortgage deals

    Your interest rate will be fixed over a set period of time. At the end of the timescale, you can negotiate a new mortgage fixed term rate, or you can let your mortgage revert to your lender’s standard variable rate.

    Tracker mortgage deals

    Tracker mortgage interest rates will change in line with the Bank of England base rate during the duration of your mortgage. If the base rate is low, this can make your mortgage more affordable than some fixed-rate mortgages, but if the base rate increases, you may have to pay more interest than someone on a fixed mortgage deal.

    Interest-only mortgage deals

    Your monthly repayments will be lower as you only pay the interest on your mortgage. However, an interest-only mortgage usually can come with a higher rate of interest, so this might not be the cheapest overall option for you. You also have to make the capital repayment in full at the end of your mortgage. A standard repayment mortgage may be a better alternative for you, despite the higher repayments, if you are worried about paying the capital at the end of your term.

    Which type of mortgage is best for you?

    Trying to make a choice between the array of mortgages out there can be daunting. But our experienced online advisors are here to help! With access to exclusive mortgage deals and tailored advice based on your individual financial situation, we will work with you every step of the way so that you get the best mortgage for your needs. Contact us today and let’s find what works for you!

    Maximizing Your Deposit’s Impact on £350,000 Mortgage Terms

    A larger deposit not only solidifies your mortgage application but also marks you as a safer bet to lenders. This advantage often translates into more favorable loan conditions, including lower interest rates, which directly lead to reduced monthly payments for your £350,000 mortgage.

    With a smaller deposit, securing your desired mortgage remains possible, but prepare for increased monthly costs. Such situations reflect the higher risk perceived by lenders, affecting the terms offered.

    The deposit size is crucial, significantly affecting the interest rates available to you and your ongoing mortgage repayments. Investing more upfront can lead to substantial savings over the life of your mortgage, emphasizing the deposit’s role in financial planning for homeownership.

    How does credit history affect £350,000 mortgage payments?

    With very few mortgage providers lending to applicants with a history of bad credit, it’s advisable to do what you can to improve your credit rating if it is currently low.

    With a good credit score, you increase the chances of having your application for a mortgage approved, and more deals will open up to you with lower rates of interest and lower monthly repayments on your mortgage.

    It’s still possible to get a mortgage loan monthly payment with a poor credit score, but your choice of mortgage lenders may be limited. Your monthly repayments may also be higher to offset the financial risk to the lender.

    If your credit score is poor because you have a lot of other debts to pay, it might be worth delaying your mortgage until you are in a better financial position. This is because you take out a mortgage at your own risk. You will have extra costs to budget for if you purchase another loan, and your home may be repossessed if you default on your mortgage payments. The equity released from your home may also be secured against it.

    Learn what credit score is needed to buy a house or for more information on this, contact us about your mortgage online, and a specialist broker will advise you further.

    Other mortgage costs

    When applying for a £350k mortgage, there are other costs that you need to factor in beyond the loan amount of your mortgage monthly payments.

    As such, you should factor in these costs when you’re budgeting your finances.

    Other costs include mortgage fees, such as the arrangement fee when you set up your mortgage with the lender, and the valuation fee, which you may be expected to pay when the lender values the property you intend to buy. If you decide to overpay your mortgage or exit your loan term early, you might also have to pay your lender early repayment charges.

    Other mortgage fees include the booking fee and mortgage account fee. If you choose to use the services of a mortgage broker, you may have to pay them a fee too. However, if you choose to use the services of YesCanDo Money, you won’t have to pay us anything as we are a FEE-FREE mortgage broker.

    You should also factor in property purchase costs, such as solicitors’ fees, estate agent fees, homebuyers survey fees, stamp duty, and there may be other fees to consider too.

    For advice on how to reduce the cost of a mortgage, get in touch with our team for the tailored advice we can offer you.

    Let’s get you a £350k mortgage deal

    We are YesCanDo Money, a specialist finance and mortgage expert who can help you find the right mortgage deal for a property worth £350,000. We will search the mortgage market for the best deals available to you, give sound advice, assist with your application, and provide guidance throughout your mortgage journey.

    If you have the capacity to afford larger mortgage repayments, exploring a £400000 mortgage option could better serve your property goals. Contact YesCanDo Money’s expert fee-free mortgage advisors for bespoke advice tailored to your situation.

    Explore Your Mortgage Options
    Reach out for 100% FREE expert mortgage advice. Our team is here to guide you to the mortgage that's just right for your financial needs. Contact us today!

    Frequently Asked Questions

    The monthly payment varies by interest rate and term, but at 4.5% over 25 years, it's approximately £1,957.

    Yes, £350k exceeds the UK average mortgage size of around £200,000, requiring a higher income and robust credit score for approval.

    You'd typically need a salary between £70,000 and £87,500, based on lenders requiring 4 to 4.5 times your annual income.

    Approval depends on your income, credit score, deposit size, and existing debts. Lenders assess these to gauge affordability and risk.

    Yes, it's possible with deposits as low as 5%, but such options typically come with higher interest rates and monthly payments. For more favorable terms, a minimum deposit of 10-15% is often recommended.

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    Grant Humphries (CeMAP)
    Grant Humphries (CeMAP)

    Grant Humphries (CeMAP) is a proficient Mortgage & Protection Adviser at YesCanDo Money. With a career spanning since 2001, Grant has honed his expertise in understanding lenders' criteria, complex financial situations, and the nuances of the mortgage market. His deep knowledge enables him to provide tailored solutions, especially for professionals and those with unique financial profiles. At YesCanDo, Grant's commitment to excellence is evident. He takes pride in guiding clients through their mortgage journey, ensuring they feel confident and informed at every step. From first-time buyers to seasoned investors, Grant's analytical approach and dedication make him a trusted adviser in the financial landscape

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