£320000 Mortgage: Monthly Repayments & Income Needed
If you’re considering a £320,000 mortgage, you’re moving beyond standard mid-range borrowing and into a level where affordability assessments become noticeably stricter. Whether you’re buying a larger home, purchasing in a higher-priced area, or remortgaging to restructure borrowing, the same questions usually apply: what will the monthly repayments look like, and how much income do lenders expect at this level?
This guide explains monthly repayments on a £320,000 mortgage, the income typically required, and the wider factors lenders assess before approving an application.
Monthly Repayments on a £320,000 Mortgage
Monthly repayments depend mainly on your interest rate and the length of your mortgage term. At £320,000, even small changes to either can have a significant impact on monthly affordability.
As a general guide:
- Over 25 years: around £1,660–£1,920 per month
- Over 30 years: around £1,390–£1,660 per month
- Over 20 years: higher monthly repayments, but substantially less interest paid overall
Lenders do not assess affordability based solely on today’s repayment. They apply stress tests to check whether repayments would remain manageable if interest rates were to rise in the future.
How Much Income Do You Need for a £320,000 Mortgage?
Most lenders start with income multiples of around 4 to 4.5 times annual income, although borrowing at £320,000 often triggers tighter affordability limits.
Based on these multiples:
- £320,000 ÷ 4.5 = around £71,000
- £320,000 ÷ 4 = around £80,000
In reality, many borrowers need an income closer to £75,000–£85,000, depending on the lender’s criteria, minimum income rules, and existing financial commitments.
Income multiples alone are only a guide. Full affordability checks always apply.
Why £320,000 Mortgages Feel More Challenging
Once borrowing exceeds £300,000, lenders become increasingly cautious. Monthly repayments consume a larger share of income, leaving less room for unexpected costs or interest rate increases.
Income requirements can feel higher due to:
- More aggressive affordability stress testing
- Lender minimum income thresholds
- Existing commitments such as loans, car finance, or childcare
- Household and lifestyle spending visible on bank statements
Even when repayments look affordable today, lenders must be confident the mortgage remains sustainable long term.
What Lenders Look At Beyond Your Salary
When assessing a £320,000 mortgage, lenders look far beyond headline income and typically review:
- Employment stability and contract type
- Regular outgoings such as loans, credit cards, childcare, and maintenance
- How income is actually managed month to month
- Discretionary and lifestyle spending patterns
- How much disposable income remains after commitments
This explains why two applicants earning the same salary can receive very different outcomes.
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Typical Uses for a £320,000 Mortgage
A £320,000 mortgage is commonly used for:
- Buying a larger family home
- Purchasing in higher-value locations
- Shared ownership staircasing
- Remortgaging to secure a new deal or restructure borrowing
- Buying out an ex-partner or co-owner
Each scenario can subtly influence how lenders assess affordability and risk.
Single Applicants vs Joint Applicants
Single applicants
A single applicant may qualify for a £320,000 mortgage on a strong income with low outgoings. However, affordability margins are tight at this level, making lender choice especially important.
Joint applicants
Joint applications often make approval easier by combining incomes. Even if one income is lower, the combined affordability picture may fit lender criteria more comfortably.
How Mortgage Term Choice Affects Affordability
Your mortgage term plays a major role in determining monthly repayments.
- Longer terms reduce monthly costs but increase total interest
- Shorter terms increase repayments but reduce interest overall
Lenders will also consider retirement age and long-term income stability, particularly where applicants are planning later-life borrowing.
How Your Deposit Affects a £320,000 Mortgage
A larger deposit can significantly improve both approval chances and interest rates.
Although the mortgage amount remains £320,000, a higher deposit can:
- Reduce lender risk
- Unlock more competitive interest rates
- Improve affordability calculations
- Provide flexibility where income is close to minimum thresholds
This can meaningfully reduce monthly repayments and widen lender choice.
Can You Get a £320,000 Mortgage With Bad Credit?
Yes — depending on the circumstances.
Lenders will usually consider:
- How recent the credit issues were
- Whether debts are settled or outstanding
- How finances have been managed since
- Evidence shown in recent bank statements
Because £320,000 sits at the upper end of mainstream borrowing, historic issues are viewed far more favourably than recent ones.
What If You’re Self-Employed?
Self-employed applicants can qualify for a £320,000 mortgage, but income assessment is more detailed and often stricter.
Most lenders will review:
- Two years of accounts or tax calculations
- Averaged income over that period
- Evidence of stable or increasing earnings
Some lenders may take a more flexible view where income is consistent and business finances are well managed.
Why Bank Statements Matter More at This Level
Bank statements play a critical role in mortgage decisions at £320,000.
Lenders will look closely for:
- Overdraft usage
- Gambling or high-risk transactions
- Missed bill payments
- Regular saving behaviour
- Whether income comfortably supports lifestyle spending
Strong account conduct can materially improve approval chances, even where income is close to lender limits.
What Can Reduce Your Chances of Approval?
Even for a £320,000 mortgage, applications may be declined due to:
- High unsecured debt
- Regular overdraft reliance
- Recent missed payments
- Irregular income patterns
- Unstable employment history
This is why some borrowers are surprised to be declined despite meeting income multiples.
How to Improve Your Chances of Approval
Helpful steps include:
- Reducing unsecured debts
- Avoiding overdraft use
- Keeping spending consistent for several months
- Avoiding new credit before applying
- Saving a larger deposit where possible
These actions can materially improve affordability outcomes.
Is a £320,000 Mortgage Harder Than Smaller Loans?
In most cases, yes. £320,000 often sits beyond the point where lender affordability models become less flexible.
Choosing the right lender criteria can be just as important as the mortgage amount itself.
Key Takeaways
- Monthly repayments are typically £1,390–£1,920, depending on term
- Income needed is often £75,000–£85,000, depending on lender rules
- Full affordability checks apply at £320,000
- Deposits and spending habits strongly influence approval
- Lender choice can make a significant difference
This guide provides general information only. Personalised mortgage advice should always come from a regulated mortgage adviser.
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Important information: Mortgage Bridge provides information only and acts as a mortgage introducer. We do not provide mortgage advice or make lender recommendations. We can introduce you to an FCA-regulated mortgage adviser who can provide personalised mortgage advice.