How much does a £350,000 mortgage cost?

If you’re planning to buy a home and you’re considering borrowing £350,000, the next question is usually simple: what will it cost each month, and what will you pay back overall?

The answer depends mainly on:

• the interest rate you’re offered
• the term (e.g., 25 or 30 years)
• whether it’s repayment or interest-only
• your deposit (which affects loan-to-value and rate options)
• your mortgage type (e.g., fixed or tracker)

Below is a practical guide to help you estimate the likely cost of a £350,000 mortgage and understand what moves the numbers.

At a glance: what affects the cost of a £350,000 mortgage?

Your monthly repayment is driven by three big levers:

1. Interest rate – higher rates increase your monthly cost.
2. Mortgage term – longer terms reduce monthly payments, but increase total interest paid.
3. Repayment method – repayment mortgages pay back both interest and capital; interest-only mortgages pay only interest (with the capital due later).

Example monthly repayments for a £350,000 mortgage

To show how repayments can vary, here are illustrative monthly repayment amounts for a £350,000 capital repayment mortgage across different interest rates and terms.

These figures are for comparison purposes only. Your actual repayment will depend on the specific mortgage product, your rate, and your circumstances.

What this table tells you

• Moving from 25 years to 30 years usually lowers the monthly figure.
• A change of even 1% in the interest rate can make a noticeable difference to what you pay each month.

How much will you pay back overall?

Your total cost is the sum of:

• the £350,000 you borrow
• plus the interest charged over the life of the mortgage

In general:

• shorter terms tend to cost less overall (less interest)
• longer terms tend to cost more overall (more interest), even though monthly payments are lower

If you’re comparing options, focus on both:

• monthly affordability
• overall cost over time

Repayment vs interest-only: what’s the difference?

Repayment (capital repayment) mortgage (most common)

With a repayment mortgage, your monthly payment covers:

• the interest on the balance
• and a portion of the capital

Over time, the loan balance reduces, and the mortgage is repaid in full at the end of the term.

Interest-only mortgage

With interest-only, your monthly payment typically covers only the interest. The £350,000 capital still needs to be repaid at the end of the term.

This can mean lower monthly payments, but you must have a credible plan for how the capital will be repaid.

How much deposit do you need for a £350,000 mortgage?

Important: lenders don’t usually set deposit requirements based on the mortgage amount alone—they base it on the property value.

That said, the deposit you put down affects your loan-to-value (LTV), and LTV can influence the interest rates available to you.

As a guide, many residential mortgages require deposits in the region of 5% to 10% (depending on the lender and the deal).

Example: if the property price is £350,000

If you were buying a £350,000 property and borrowing £350,000, that would imply no deposit—which is uncommon.

More typical scenarios might look like:

• a 5% deposit means borrowing about £332,500
• a 10% deposit means borrowing about £315,000

If your goal is specifically to borrow £350,000, your deposit and/or property price will need to align with what lenders will offer.

What income do you need for a £350,000 mortgage?

Lenders assess affordability using your income and outgoings, and they may apply income multiples as part of their underwriting.

As a rough rule of thumb, many lenders look at borrowing around 4 to 4.5 times annual income (though this varies by lender and circumstances).

So, for a £350,000 mortgage, that could mean an annual income somewhere in the region of:

• ~£77,777 to £87,500 (based on 4 to 4.5x)

If your income doesn’t stretch to the figure you need, you may consider options such as:

• applying with a partner (joint application)
• adjusting the deposit
• choosing a different term
• exploring mortgage types that better match your situation

Factors that can change the cost of your £350,000 mortgage

1) Interest rate

This is usually the biggest driver. A higher rate increases both monthly payments and total interest.

2) Term length

Longer terms reduce monthly payments but typically increase total interest paid.

3) Mortgage type (fixed vs tracker)

• Fixed-rate deals keep the rate steady for a set period.
• Tracker rates can move with a reference rate, which may change your payments.

4) Your deposit and LTV

A higher deposit can improve your LTV and may give you access to a wider range of rates.

5) Your credit profile

Your credit history can affect what rates and mortgage options are available to you.

How a mortgage broker can help with a £350,000 mortgage

When you’re targeting a specific borrowing amount, it’s easy to focus only on the monthly figure. A broker can help you look at the bigger picture—rate, term, product type, and how your deposit and circumstances affect what’s realistically available.

Working with a broker can help you:

• compare suitable mortgage options across lenders
• understand how changes to term, deposit and repayment type affect affordability
• avoid wasting time applying for products that may not fit your situation

Next step: estimate your repayments more accurately

If you’d like, gather the details you know (mortgage term, deposit, whether you want repayment or interest-only) and use them to narrow down the most likely repayment range.

If you’re unsure which mortgage structure best fits your plans, speak to a broker—especially if you’re aiming for a specific borrowing target like £350,000.