What are the Repayments on a 120k Mortgage?
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At Ascot Mortgages, our passion revolves around guiding home-buyers seamlessly through their property purchase journey. From those first-time buyer nerves to the excitement of receiving your mortgage approval, we’re here with you at every turn. Navigating the vast and sometimes confusing world of UK mortgages can be daunting. Fear not; our experienced mortgage experts will ensure your home-buying process is a breeze. So, whether you’re just starting out or ready to take that substantial step, remember, we’re just a message away.
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Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
26.10.2023
Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
26.10.2023
Mortgage repayment on 120k
For a mortgage of £120,000, the monthly repayments depend on:
- The interest rate
- The mortgage term
- Whether it’s interest-only or repayment
- Your deposit amount
- Your credit history
For example, if you’re looking at a £120000 mortgage over 25 years at a 5% interest rate, your estimated monthly repayments might be around £701.5. However, this is a general figure and can vary based on the factors mentioned above.
UK Mortgage Calculator 120k
To give you a general idea, here’s a hypothetical representation of monthly repayments:
Mortgage Term | Interest Rate | Monthly Repayment |
Over 10 years | 5% | £1273 |
Over 15 years | 5% | £949 |
Over 20 years | 5% | £792 |
Over 25 years | 5% | £701.5 |
(Note: These are hypothetical numbers. Use our free online calculator for a tailored estimate.)
For a clear view of potential monthly repayments:
- Launch our calculator.
- Input the amount you’re keen on borrowing: mortgage on 120k.
- Adjust the term: over 10 years, 15 years, 20 years, or even 25 years.
- Witness an estimated monthly payment emerge before your eyes.
Mortgage Repayment Calculator
How can I get a mortgage for £120k?
Taking the leap for a 120k mortgage? Here’s a step-by-step guide:
- Evaluate your credit history.
- Ascertain the amount you can borrow based on your financial health.
- Employ a broker for tailored options.
- Seek the best mortgage deal aligning with your needs.
- Officially apply and await approval.
Find out the eligibility requirements and the process of applying for a mortgage loan of 120k
To be eligible:
- Have a deposit ready, typically 5-20% of the property cost.
- Good credit history.
- Proof of income and employment.
- Pass the lender’s affordability checks.
How much do I need to earn a year to get a £120,000 mortgage on my own?
Typically, lenders offer mortgages around 4-4.5 times your annual income. So, for a £120k mortgage, an annual salary between £26,666 and £30,000 might be sufficient. However, other financial aspects play a role.
Alison Gibson
Ascot Mortgage Expert
Remortgage
Remortgaging is applied when you keep
living in your present property while applying for another mortgage deal with a new lender. Before finding out how to remortgage and get the best offers from experts like Ascot Mortgages, you have to check meeting what parameters of the deal that can help you succeed the most. The range of background factors varies a lot — from the recently changed loan-to-value ratio or your existing agreement coming to an end.
Whether you are trying to get a more beneficial deal or searching for funding to improve your home conditions, remortgaging is one of the most advantageous scenarios to consider.
How does interest rate affect repayments on a £120k mortgage?
Interest rates can be the make or break factor. A lower rate means you pay less over the mortgage term. For instance, a difference of just 1% on a £120k mortgage can mean thousands saved over the course of the loan.
How does the mortgage term affect £120k mortgage repayments?
A shorter term, say over 10 years, means higher monthly payments but less interest paid overall. Conversely, a longer term like over 25 years results in lower monthly payments but more interest over time.
How does the mortgage type affect £120k mortgage monthly repayments?
There are various mortgage types:
- Fixed-rate: Steady interest rate for a set period.
- Variable-rate: Fluctuating interest rates.
- Tracker: Follows an external rate, like the Bank of England’s base rate.
Each type affects your monthly repayment differently.
£120000 mortgage repayments vs interest only
With a standard £120000 mortgage, you repay part of the loan amount (capital) plus interest each month. With interest-only, you’re only covering the interest, meaning lower monthly costs but the capital still remains at the end of the term.
Can a broker help me get approved for a £120k mortgage?
Absolutely! Brokers have a wealth of experience and connections to various lenders, potentially fetching you better deals and easing the application process.
Contact Ascot Mortgages about a £120k mortgage
Ascot Mortgages is here to assist. Our expert team can guide you through the maze of products and offers, ensuring you secure the best deal possible for your £120k mortgage. Don’t navigate this journey alone; let us be your compass. Reach out today!
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FAQ
01/ How much is a 120k mortgage per month UK?
The monthly repayment for a £120k mortgage in the UK varies based on the term and the interest rate. As a rough guide, for a £120,000 mortgage at 5% interest over 25 years, you’d be looking at repayments of approximately £701 per month. However, it’s essential to use a mortgage calculator for precise figures and to consult with a broker or lender.
02/ How much is 120k mortgage payment 15 years?
For a £120k mortgage over 15 years, the monthly repayments will be higher than a longer-term mortgage because you’re repaying the capital over a shorter period. At a hypothetical 5% interest rate, your monthly repayments would be about £949. But again, exact amounts depend on your specific interest rate and other terms.
03/ How much is a £120k mortgage payment for 30 years?
For a £120,000 mortgage over 30 years, your monthly repayments will generally be lower than shorter terms because the repayments are spread over a more extended period. If we consider an interest rate of 5%, you’d be looking at approximate monthly repayments of £644. Still, it’s crucial to get a precise quote tailored to your circumstances.
04/ What house can I afford on 120k a year UK?
In the UK, lenders typically offer mortgages that are around 4-4.5 times your annual salary. So if you earn £120,000 a year, you might be eligible for a mortgage between £480,000 and £540,000. However, this does depend on other financial commitments, credit history, and the deposit you have saved.
05/ What salary do you need for a 120k house UK?
To purchase a house worth £120,000 in the UK, you typically need a salary that can comfortably cover the mortgage repayments. Lenders often offer around 4-4.5 times your annual income. Therefore, an annual salary of approximately £27,000 to £30,000 might be sufficient to secure a mortgage for a £120,000 property, assuming other financial criteria are met.
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Ascot Mortgages authorised and regulated by the Financial Conduct Authority and can be found on the FCA register (www.fca.org.uk) under reference 776062. The FCA do not regulate some forms of mortgages. The guidance and advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate it will be £399 per mortgage account. Ascot Mortgages Ltd give you the option to pay a non-refundable fee of £879 payable with the application. If this option is taken, Ascot Mortgages Ltd will refund any procuration fee received by the lender.
Ascot Mortgages Limited is registered in England and Wales and have their registered office at 8 Webster Court, Westbrook, Warrington, WA5 8WD. The company’s registration number is 06764971.
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