£500,000 Mortgage: Monthly Payments
A £500,000 mortgage over 25 years at 5% costs about £2,923 a month. Here is how the payment changes with the rate and the length of the mortgage.
Monthly repayment on £500,000
| Interest rate | 15 years | 20 years | 25 years | 30 years | 35 years |
|---|---|---|---|---|---|
| 3% | £3,453 | £2,773 | £2,371 | £2,108 | £1,924 |
| 4% | £3,698 | £3,030 | £2,639 | £2,387 | £2,214 |
| 5% | £3,954 | £3,300 | £2,923 | £2,684 | £2,523 |
| 6% | £4,219 | £3,582 | £3,222 | £2,998 | £2,851 |
| 7% | £4,494 | £3,876 | £3,534 | £3,327 | £3,194 |
Repayment or interest-only?
| Interest rate | Interest-only a month | Repayment a month (25 years) |
|---|---|---|
| 3% | £1,250 | £2,371 |
| 4% | £1,667 | £2,639 |
| 5% | £2,083 | £2,923 |
| 6% | £2,500 | £3,222 |
| 7% | £2,917 | £3,534 |
Interest-only is cheaper each month but you still owe all £500,000 at the end, so you need a plan to repay it.
Total cost
At 5% over 25 years you pay £876,885 in total: the £500,000 borrowed plus about £376,885 of interest. Overpaying a little each month can shorten the term and cut the interest; try the mortgage overpayment calculator.
Nearby amounts
Figures assume a fixed rate for the whole term. Most people fix for two to five years and then move to a new deal, so payments can change. Fees and stamp duty are extra. Speak to a regulated mortgage adviser before you borrow.
Frequently asked questions
How much is a £500,000 mortgage per month?
Over 25 years at 5% a £500,000 repayment mortgage costs about £2,923 a month. At 4% it is £2,639 and at 6% £3,222.
How much interest will I pay on a £500,000 mortgage?
At 5% over 25 years you would pay about £376,885 in interest on top of the £500,000 you borrow, so £876,885 in total.
What income do I need for a £500,000 mortgage?
Lenders typically offer 4 to 4.5 times income, so you would need an income of roughly £111,111 to £125,000, depending on your outgoings.
What is the difference between repayment and interest-only?
With a repayment mortgage you pay off the loan as well as the interest, so you own the home outright at the end. With interest-only you pay just the interest each month and still owe the full amount at the end.
Figures are for the 2026/27 tax year from official sources and are estimates for guidance only, not financial or legal advice. Printed from ukanswers.co.uk.