£1,000,000 Mortgage — Monthly Repayments
Monthly repayments on a £1,000,000 mortgage at 5.5% over 25 years are £6,140.87. The total amount repaid is £1,842,262.48 including £842,262.48 in interest.
A £1,000,000 mortgage puts you well above the average UK borrowing level. Monthly repayments at 5.5% over 25 years are £6,140.87. The total interest cost of £842,262.48 is 84% of the loan.
Your deposit and total property cost
A £1,000,000 mortgage with a 10% deposit means you're buying a property worth £1,100,000. Your deposit of £100,000 gives you a loan-to-value (LTV) ratio of 90%. A larger deposit — say 15% (£165,000) or 20% (£220,000) — would reduce your monthly payments and may qualify you for a lower interest rate. Lenders typically offer their best rates at 60% LTV or below.
Monthly payments at different interest rates
| Rate | Monthly payment | Total interest |
|---|---|---|
| 4% | £5,278.37 | £583,510.52 |
| 4.5% | £5,558.32 | £667,497.43 |
| 5% | £5,845.9 | £753,770.12 |
| 5.5% | £6,140.87 | £842,262.48 |
| 6% | £6,443.01 | £932,904.2 |
| 6.5% | £6,752.07 | £1,025,621.48 |
| 7% | £7,067.79 | £1,120,337.59 |
How the mortgage term affects your payments
| Term | Monthly payment | Total interest |
|---|---|---|
| 15 years | £8,170.83 | £470,750.22 |
| 20 years | £6,878.87 | £650,929.54 |
| 25 years | £6,140.87 | £842,262.48 |
| 30 years | £5,677.89 | £1,044,040.4 |
| 35 years | £5,370.16 | £1,255,468.37 |
What salary do you need for a £1,000,000 mortgage?
Most UK lenders use a 4.5x income multiple. To borrow £1,000,000, you'd typically need an annual salary of at least £222,222.
Stamp duty on this property
With a 10% deposit, a £1,000,000 mortgage means buying a property around £1,100,000. The stamp duty would be £53,750 (effective rate: 4.89%). Including your deposit and stamp duty, you'd need £153,750 upfront.
Frequently asked questions
How much is a £1,000,000 mortgage per month?
At 5.5% interest over 25 years, your monthly repayment on a £1,000,000 mortgage is £6,140.87. This includes both the capital repayment and interest. Over the full 25-year term, you'll pay £842,262.48 in interest on top of the original £1,000,000 loan.
What salary do I need for a £1,000,000 mortgage?
Using the standard 4.5x income multiple, you need a salary of at least £222,222 to borrow £1,000,000. Some lenders may offer up to 5.5x for applicants with strong credit and low outgoings, which would require a salary of £181,818.
Should I get a repayment or interest-only mortgage?
With a repayment mortgage on £1,000,000, you pay £6,140.87 per month and the loan is fully paid off after 25 years. An interest-only mortgage would cost just £4,583 per month, but you'd still owe the full £1,000,000 at the end of the term. Most residential mortgages in the UK are repayment.
Can I overpay my £1,000,000 mortgage?
Most lenders allow you to overpay up to 10% of the outstanding balance each year without early repayment charges. On a £1,000,000 mortgage, that's up to £100,000 in the first year. Regular overpayments can significantly reduce your total interest and shorten the mortgage term.