A £90k mortgage is below the average UK amount, but it pays to be prepared before you apply for significant finance of any kind. In this guide, you will learn how to calculate the repayments on a £90k mortgage and how to get one.
How much would a £90k mortgage cost?
Based on the UK market conditions at the time of writing (September 2024), the average monthly repayments on a £90,000 mortgage would be £475. This example calculation is for a capital repayment mortgage with a 4% interest rate, taken over a 25-year term.
The above is representative of a typical mortgage deal right now, and if you were to take out this mortgage, you would have repaid a total of £142,516 by the end of the term.
Although these figures are relevant examples, your exact mortgage costs will vary based on factors including the interest rate, term length and the type of mortgage you’re applying for.
Work out your mortgage repayments
You can use our calculator below to work out the costs on your £90,000 mortgage. This tool allows you to compare the costs across different interest rates, term lengths and repayment types. Simply enter these details into the input fields below to get some quick results.
Now that you have run your calculations, you can compare rates for £90k mortgages from lenders across the market for free on Teito - get started here.
Factors that will determine your repayments
In this section we will explore how the term length, interest rate and mortgage type can affect the cost of a £90k mortgage, complete with example calculations for context.
How interest rates affect your payments
The table below shows how the cost of a £90k mortgage can vary across different interest rates. These figures are based on a capital repayment mortgage taken over 25 years.
Mortgage Amount | Interest Rate | Monthly Repayments | Overall Repayment |
£90k | 3.5% | £451 | £135,168 |
£90k | 4% | £422 | £126,681 |
£90k | 4.5% | £475 | £142,516 |
£90k | 5% | £526 | £157,839 |
£90k | 5.5% | £553 | £165,804 |
£90k | 6% | £580 | £173,961 |
Your mortgage lender will decide what interest rate you qualify for based, primarily, on how much deposit you have and the overall strength of your application.
Term lengths
This table shows how the repayments on a £90k mortgage will change depending on the term length. These calculations are for a capital repayment mortgage with a 4% interest rate.
Mortgage Amount | Term Length | Monthly Repayments | Overall Repayment |
| £90k | 10 years | £911 | £109,345 |
£90k | 15 years | £666 | £119,829 |
£90k | 20 years | £545 | £130,892 |
£90k | 25 years | £475 | £142,516 |
£90k | 30 years | £430 | £154,683 |
£90k | 35 years | £398 | £167,369 |
£90k | 40 years | £376 | £180,549 |
The longer the term, the lower your mortgage repayments will be, but maxing out the term means paying more for your overall, due to the number of interest instalments increasing.
Mortgage type
The mortgage type will also have a bearing on your repayments as specific product types have different rates attached. Fixed and variable-rate mortgages come with different rates, depending on factors including how long you lock in for and whether you pay a fee.
In addition to the product type, most lenders will give you a choice of repayment type, with interest-only being the main alternative to capital repayment mortgages.
The table below shows how much a £90,000 mortgage will cost each month and overall when taken out on an interest-only basis with a term length of 25 years.
Mortgage Amount | Interest Rate | Interest-only Payments (Monthly) | Overall Repayment |
£90k | 3.5% | £263 | £168,750 |
£90k | 4% | £300 | £180,000 |
£90k | 4.5% | £338 | £191,250 |
£90k | 5% | £375 | £202,500 |
£90k | 5.5% | £413 | £213,750 |
£90k | 6% | £450 | £225,000 |
Similar mortgage amounts
For some people, £90k is a ballpark amount they need to borrow. The table below shows how your mortgage repayments will change if you were to borrow slightly more or less than this on a capital repayment agreement with a 4% rate over a 25-year term.
Mortgage Amount | Monthly Repayments | Overall Repayments |
£75k | £396 | £118,763 |
£80k | £422 | £126,681 |
£90k | £475 | £142,516 |
£95k | £501 | £150,433 |
£100k | £528 | £158,351 |
£105k | £554 | £166,269 |
Calculations all done? Here are your options now...
Other costs and fees
The repayments on your £90,000 mortgage are just one of the costs involved. Other costs and fees involved in taking out a mortgage include the following:
- 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.
Tips to help you lower your mortgage costs
You can potentially keep the repayments on a £90k mortgage to a minimum by bearing the following tips in mind:
- 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.
How to get a £90,000 mortgage
Once you have run some calculations, you can get the ball rolling on your mortgage application by comparing deals for free on Teito. Our service lets you browse rates from lenders across the entire market and secure an agreement in principle in minutes.
Once you have selected a mortgage that fits your needs, one of our mortgage brokers will be in touch to offer a free, no-obligation chat, during which they will check you are getting the best deal and make sure your application goes smoothly - get started here.
FAQs
All of the mortgage applicants would need to be earning around £20,000 per year combined. This is because the majority of lenders will cap you maximum borrowing at 4.5 times annual salary - 4.5 x 20,000 = 90,000. If you don’t earn this amount, keep in mind that there are lenders who will let you borrow 5-6 times salary, under the right circ*mstances.
The amount of deposit you will need is not determined by the mortgage amount, in this case £90k, but the property’s purchase price. You will need at least 5-10% of the purchase price to get approved for a mortgage. For example, you could buy a £100,000 property with a £90,000 mortgage and a £10,000 deposit, as £10,000 would be 10% of the purchase price.
They would be calculated in exactly the same way as they would be for a residential mortgage, but interest rates can be higher in this corner of the market, and most buy-to-let mortgages are taken out on an interest-only basis so landlords can keep their costs down.
With these factors in mind, a typical monthly repayment on a buy-to-let mortgage at the time of writing would be around £413. This is based on an interest-only mortgage with a 5.5% interest rate, a 25-year term length and a borrowing amount of £90,000.
Given that you will need at least 5% of the property's value to put down as a deposit - which in this case would be £4,500 - you would need to take out a mortgage for £85,000. In very cases, it may be possible to borrow the full £90k on a 100% LTV mortgage deal.
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.
