A mortgage of £50k would be well below the market average, but it’s still a good idea to be prepared before you apply for one. Here you will learn how to work out the repayments on a mortgage of this amount and get the best deal possible.
How much would the repayments on a £50k mortgage be?
The typical monthly repayments on a £50,000 mortgage would be around £264. This example calculation is based on a capital repayment mortgage with a term length of 25 years and an interest rate of 4%, which is representative of the UK market average.
If you were to pay this amount on a £50k mortgage over 25 years, you will have repaid £79,176 by the end of the term. The rates we have used to work out these example figures were representative of the UK market in September 2024, but rates are subject to change.
The exact repayments you end up with will vary depending on the kind of mortgage deal you qualify for and the type of product and repayment type you choose.
Calculate your mortgage repayments
You can use our mortgage calculator below to work out the repayments on a £50k mortgage and how they vary based on different interest rates, term lengths and repayment types. It takes seconds to enter these variables and receive some quick results.
Now that you have a better idea of mortgage costs, you can compare deals from across the market for free on Teito. When you source a mortgage with us, you also have the option to speak to a broker for bespoke advice - get started here.
Variables that affect mortgage repayments
The exact repayments to expect on a mortgage of £50k will depend on these factors:
- The interest rate you qualify for
- The term length
- Product and repayment type
Read on to find out how mortgage repayments vary based on these factors.
Interest rate
The interest rate you are offered will depend on the loan-to-value ratio (how much deposit you can put down) and your creditworthiness. The table below shows how the repayments on a capital repayment mortgage taken over 25 years can vary based on different rates.
Mortgage Amount | Interest Rate | Monthly Repayments | Overall Repayment |
£50k | 3.5% | £250 | £75,094 |
£50k | 4% | £264 | £79,176 |
£50k | 4.5% | £278 | £83,375 |
£50k | 5% | £292 | £87,689 |
£50k | 5.5% | £307 | £92,113 |
£50k | 6% | £322 | £96,645 |
Term length
Standard mortgage terms are 25 years but most lenders offer longer and shorter agreements than this to cater for borrowers with different preferences. Stretching a mortgage over a longer term means lower monthly payments but paying more in interest overall.
The table below shows how the monthly cost of a £50k mortgage can vary across different term lengths. An example rate of 4.5% for a capital repayment mortgage was used here.
Mortgage Amount | Term Length | Monthly Repayments | Overall Repayment |
£50k | 10 years | £506 | £60,747 |
£50k | 15 years | £370 | £66,572 |
£50k | 20 years | £303 | £72,718 |
£50k | 25 years | £264 | £79,176 |
£50k | 30 years | £239 | £85,935 |
£50k | 35 years | £221 | £92,983 |
£50k | 40 years | £209 | £100,305 |
Mortgage type
Different product types, such as fixed-rates and trackers come with their own rates, and therefore different monthly costs. The repayment type will also determine your repayments, specifically whether you choose a capital repayment mortgage (as is most common) or an interest-only deal, where only the interest must be paid each month.
The table below shows what the repayments will look like on a £50,000 interest-only mortgage taken over 25 years, with examples based on different interest rates.
Mortgage Amount | Interest Rate | Interest-only Payments (Monthly) | Overall Repayment |
£50k | 3.5% | £146 | £93,750 |
£50k | 4% | £167 | £100,000 |
£50k | 4.5% | £278 | £83,375 |
£50k | 5% | £263 | £78,920 |
£50k | 5.5% | £276 | £82,902 |
£50k | 6% | £250 | £125,000 |
The exact mortgage amount
Some mortgage borrowers may be in a position to put down extra deposit or may ultimately have to borrow slightly more than £50k. With this in mind, we have created the table below showing repayment calculations for similar mortgage amounts in the same ballpark.
Mortgage Amount | Monthly Repayments | Overall Repayments |
£40k | £211 | £63,340 |
£45k | £238 | £71,258 |
£50k | £264 | £79,176 |
£55k | £290 | £87,093 |
£60k | £317 | £95,011 |
£65k | £343 | £102,928 |
The calculations above used a capital repayment mortgage with a term length of 25 years and an interest rate of 4% for example purposes
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Other costs involved
The monthly repayments on a £50k mortgage aren’t the only cost you need to factor into your budget. There are other fees involved, but the good news is that they are often a percentage of the loan amount, which in this case, is relatively low. Other costs include:
- Product fees: Can range between nothing and £2,000. Fee-free deals often come with higher rates, but the fee itself can sometimes be added to the mortgage.
- Booking fee: An admin cost as part of the mortgage application process. It can range between £99-250 and is sometimes rolled into the product fee.
- Valuation fee: Some lenders will expect you to foot the cost of having the property you’re buying valued, and this can set you back between £250-1,500.
- Telegraphic transfer fee: A small fee to cover the cost of transferring your mortgage funds to your solicitor so the deal can be closed, usually between £25 and £50.
- Account fee: Another admin cost, usually between £100 and £300, to cover the set up, maintenance and eventual closure of your mortgage account held by the lender.
How to reduce your mortgage repayments
Even though £50k is a relatively small amount for a mortgage, we still recommend bearing the following tips in mind to help you keep your repayments to a minimum:
- Put down a larger deposit:Not only would you need to borrow less, putting down extra deposit can reduce the loan-to-value (LTV) ratio and help you qualify for a lower rate.
- Improve your credit situation:Waiting for any bad credit to disappear from your credit files, paying off debts you’re in a position to clear, and paying any existing bills and credit agreements on time ahead of your application can also help you land a lower rate.
- Consider a longer mortgage term:This will reduce your monthly payments in the short term (on a capital repayment agreement), but you will be paying more in interest overall.
- Consider interest-only:Interest-only mortgages have lower monthly payments but you will need a repayment vehicle to settle the debt at the end of the term. Be sure to seek professional advice from a qualified mortgage broker before choosing this option.
Compare £50,000 mortgage rates and deals
Now that you have run some calculations, you can take the first step towards applying for a £50k mortgage by comparing rates and deals for free on Teito. When you source a mortgage through us, you will also have the option to receive professional advice from a broker.
Here are just some of the reasons why people choose Teito for their mortgage needs:
- You can access rates and deals in seconds
- Exclusive products are often available
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to compare £50,000 mortgage rates and deals and take advantage of a free, no-obligation chat with one of our expert advisors? Get started here.
FAQs
You will need annual income of around £11,111 to get a mortgage of £50,000 as most lenders cap their maximum borrowing at 4.5 times salary. If you earn under this amount, options include finding a lender who offers mortgages based on 5-6 times salary, applying jointly with another person(s), or declaring supplemental income, such as bonuses.
The mortgage amount of £50k is irrelevant when it comes to deposit requirements as the amount you will need to put down will depend primarily on the property’s purchase price/value. You will usually need 5-10% of this to put down and the £50k will cover the rest.
Under normal circ*mstances, it will not be possible to borrow the full £50k. If the property’s purchase price is £50k, you will need at least 5% of this amount in deposit funds, so this amounts to a £2,500 deposit, but you can access a wider range of deals with 10% (£5k).
They will be calculated in exactly the same way as for a £50k buy-to-let mortgage but buy-to-let mortgage rates tend to be higher and most of these mortgages are taken out on an interest-only basis. Therefore the average monthly repayment would be around £208, an example based on an interest-only mortgage with a 5% rate and 25-year term.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
