Thinking About a £200,000 Mortgage? Here’s What You Need to Know About Repayments and Income
If you’re looking at a £200,000 mortgage, you’re probably wondering:
- How much do I need to earn to get a £200,000 mortgage?
- What would my monthly repayments look like?
- How much deposit would I need?
- Is it even possible if I’ve got bad credit or a complex income?
At Mortgage Bridge, we help people figure this out every day, so we’ve pulled together a clear, honest guide to help you see what a £200,000 mortgage might look like for your situation.
How Much Do I Need to Earn for a £200,000 Mortgage?
Most lenders work on income multiples when they look at what you can borrow. A common guide is around 4 to 4.5 times your income.
So, if you’re looking at a £200,000 mortgage:
- At 4.5x income, you’d need to earn roughly £44,444 a year as a household.
- If you’ve got a decent deposit or low outgoings, you might not need to earn quite as much.
What lenders look at:
- Your income (and your partner’s, if it’s a joint application)
- Any debts or credit commitments you’re paying each month
- How many kids or dependants you have
- How long you want the mortgage to run
How Much Deposit Do I Need for a £200,000 Mortgage?
The deposit you’ll need depends on your circumstances, but here’s a rough guide:
- 5% deposit: £10,000
- 10% deposit: £20,000
- 15% deposit: £30,000
- 20% deposit: £40,000
A bigger deposit can help you get a better rate and lower your monthly payments, especially if you’ve had bad credit or complex income.
What Would My Monthly Repayments Be on a £200,000 Mortgage?
Your monthly repayments depend on:
- The interest rate
- The length of the mortgage term
- Whether you’re on a repayment or interest-only deal
Here’s a quick example:
On a 25-year repayment mortgage at 5%:
- Around £1,169 per month
On a 30-year repayment mortgage at 5%:
- Around £1,073 per month
If you’re looking at interest-only, your payments would be lower (around £833 per month on £200,000 at 5%), but you’d still need to pay off the balance at the end of the mortgage.
Can I Get a £200,000 Mortgage If I Have Bad Credit?
We get asked this a lot, and the short answer is: yes, it’s possible.
If you’ve had:
- Defaults
- CCJs
- Missed payments
- Debt management plans
You might still be able to get a mortgage, but you may need:
- A bigger deposit (often 15%–25%)
- Proof that you’ve managed your money well since the issues
Every lender has different rules, and we’re used to helping people find options even if their credit isn’t perfect.
Can I Get a £200,000 Mortgage If I’m Self-Employed or Have Complex Income?
If you’re self-employed or have income from multiple sources, there are lenders who understand that your income might not be as simple as a standard payslip.
Lenders can consider:
- Salary and dividends if you’re a limited company director
- Retained profits in your business
- Contractor day rates
- Multiple income streams
Having at least 1–2 years of accounts or SA302s can help, along with proof of ongoing work if you’re a contractor.
What Interest Rates Can I Expect on a £200,000 Mortgage?
Rates can vary depending on:
- Your deposit size
- Your credit history
- Whether you go for a fixed or variable rate
Right now, rates are typically sitting between 4.5% and 6%, depending on your circumstances and the lender’s criteria.
How Long Can I Take to Repay a £200,000 Mortgage?
Mortgage terms can run from 15 years up to 40 years.
Shorter term:
- Higher monthly payments
- Less interest paid over time
Longer term:
- Lower monthly payments
- More interest paid overall
Most of our clients choose 25–30 years to keep monthly payments comfortable while balancing the total interest paid.
Can I Get a £200,000 Mortgage With Just a 5% Deposit?
Yes, some lenders offer 95% mortgages, so you’d need a £10,000 deposit for a £200,000 mortgage.
Bear in mind:
- You’ll need a good credit history
- Monthly payments will be higher as you’re borrowing more
- You’ll need to pass affordability checks to make sure it’s manageable
What If I Want an Interest-Only £200,000 Mortgage?
Interest-only can lower your monthly payments, but you need a clear plan to repay the balance at the end of the mortgage, such as selling the property or using investments.
For example:
- On £200,000 at 5% interest-only: ~£833 per month (but you still owe £200,000 at the end).
How Do I Know If I Can Afford a £200,000 Mortgage?
Here’s what to check:
✅ Your monthly income (including partner’s if joint)
✅ Your monthly outgoings and debts
✅ Your deposit amount
✅ Your credit report status
✅ Use a mortgage repayment calculator to see likely payments
If your income and commitments fit the lender’s affordability checks, a £200,000 mortgage could be within reach.
FAQs About a £200,000 Mortgage
Is it hard to get a £200,000 mortgage?
Not if your income, deposit, and credit history are in a good place. We help people secure these every day.
How much do I need to earn for a £200,000 mortgage?
Roughly £40,000–£50,000 household income, depending on your deposit and other financial commitments.
Can I get a £200,000 mortgage with bad credit?
Yes, with the right deposit and lender, even if you’ve had issues in the past.
How much deposit do I need for a £200,000 mortgage?
Between £10,000 and £40,000 depending on the percentage you can put down.
Ready to See If a £200,000 Mortgage Is Right for You?
At Mortgage Bridge, we specialise in helping people with complex income, bad credit, or first-time buyers find the right mortgage for their situation.
If you’re exploring a £200,000 mortgage, we can help you check:
- If your income and credit are ready
- What repayment options might work best
- What deposit will give you the best rates
You don’t have to figure this out alone. We’re here to help you understand your options clearly so you can move forward with confidence.
Next Steps
✅ Check your credit report (we recommend CheckMyFile for a multi-agency view)
✅ Use a repayment calculator to see what your payments could look like
✅ Review your deposit and income
✅ Get in touch if you’d like us to help you explore your options