£875,000 Mortgage Repayments
If you take out a £875,000 mortgage over 25 years at a typical interest rate of 4.5%, your monthly repayment would be £4,863.53. Over the full term you would repay a total of £1,459,059, meaning you would pay £584,059 in interest on top of the original £875,000 borrowed.
Monthly Repayments at Different Interest Rates
The table below shows what your monthly payments would be on a £875,000 repayment mortgage over 25 years at a range of interest rates. Use this to compare how different rates affect your total cost.
| Interest Rate | Monthly Payment | Total Repaid | Total Interest |
|---|---|---|---|
| 3% | £4,149.35 | £1,244,805 | £369,805 |
| 4% | £4,618.57 | £1,385,571 | £510,571 |
| 4.5%(typical) | £4,863.53 | £1,459,059 | £584,059 |
| 5% | £5,115.16 | £1,534,548 | £659,548 |
| 6% | £5,637.64 | £1,691,292 | £816,292 |
All figures assume a 25-year repayment mortgage with no overpayments or rate changes.
How Interest Rate Affects the Cost of a £875,000 Mortgage
On a £875,000 mortgage, the difference between the lowest and highest rates shown above is significant. At 3%, your monthly payment would be £4,149.35, while at 6% it rises to £5,637.64 — a difference of £1,488.29 per month, or £17,859 per year.
Over the full 25-year term, the total interest paid at 3% would be £369,805, compared to £816,292 at 6%. That means a higher rate could cost you an extra £446,487 in interest alone. Even a small reduction in your rate can save tens of thousands of pounds over the life of the mortgage.
What Deposit Do You Need for a £875,000 Mortgage?
The figures above show the mortgage amount itself, not the full property price. If you are borrowing £875,000, the property value and deposit required depend on the loan-to-value (LTV) ratio your lender offers. Here is what that looks like:
| Deposit % | Property Value | Deposit Needed | LTV |
|---|---|---|---|
| 5% | £921,053 | £46,053 | 95% |
| 10% | £972,222 | £97,222 | 90% |
| 15% | £1,029,412 | £154,412 | 85% |
| 20% | £1,093,750 | £218,750 | 80% |
| 25% | £1,166,667 | £291,667 | 75% |
A larger deposit typically means access to lower interest rates and smaller monthly payments. Most lenders require a minimum 5% deposit (95% LTV).
Key Facts About a £875,000 Mortgage
- At 4.5% interest over 25 years, your monthly payment is £4,863.53 — that is £58,362 per year.
- You would need a minimum annual salary of roughly £194,444 to £218,750 to borrow £875,000 (based on typical 4-4.5x income multiples).
- The total cost of this mortgage at 4.5% is £1,459,059, of which £584,059 is interest.
- Interest makes up 40% of the total amount you repay over 25 years.
- Overpaying by just £100 per month could save you thousands in interest and reduce your term by several years. Use our mortgage overpayment calculator to see how much.
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