£300,000 Mortgage

Buying a home with a £300,000 mortgage is a significant financial milestone, and understanding the details is key to a stress-free journey. In this guide, we'll give you a clear, no-nonsense breakdown of the numbers so you can budget with confidence and get ready to make your move.

How Much Is a £300k Mortgage per Month?

To give you an idea, using an average interest rate of 4% (as of September 2025), with a typical 25-year term on a standard capital repayment mortgage, monthly payments on a £300,000 mortgage would be £1,584.

However, mortgage repayments vary depending on a few key factors: the interest rate you get, the length of the mortgage term, and the type of repayment method you choose. This is why it’s always worthwhile to compare different scenarios before making a decision. 

Using our mortgage repayment calculator, you can adjust the term length and interest rate to see how these changes affect your monthly payments. 

The table below provides a further breakdown of what a £300k mortgage payment might look like each month, depending on the interest rate and term. 

*This row represents the most realistic repayments, based on current interest rates (as of September 2025). The figures in the table above are for illustrative purposes only. 

As you can see, a longer term means lower monthly payments, but you'll pay more in total interest over the life of the loan. That’s why it’s important to work out your budget and choose a term that fits what you can afford, rather than stretching your finances or overpaying.

How Much Do You Need to Earn for a £300,000 Mortgage?

Lenders usually work out how much you can borrow by applying a multiple to your annual income. The typical range is between four and five times your salary. Based on this, to get a £300,000 mortgage, you’d need an income of roughly £60,000 to £75,000 per year.

Keep in mind that if you're buying with a partner or a friend, lenders will assess your combined earnings for a joint mortgage, which can significantly increase your borrowing power.

To see how this might work out for you, based on your annual income, take a look at our quick and easy-to-use affordability calculator. 

While 4.5 times your income is a common yardstick for many lenders, some are willing to offer a higher multiple, such as 5.5 times or even 6 times your annual salary in certain cases. This means even if you don’t meet the £60,000-£75,000 income range, there could still be a way for you to secure a £300,000 mortgage.

The table below shows examples of the wider salary ranges that could potentially secure a £300,000 mortgage.

Remember, this is just a guideline at this stage. Lenders will assess your overall financial situation, including your debts, expenses, and credit history, before reaching a final decision on how much you can borrow for your mortgage.

How Much Deposit Will You Need for a £300,000 Mortgage?

Your deposit is tied to the property’s purchase price rather than the loan amount itself. Lenders normally ask for a minimum of 5% of the property value, with the rest made up by your mortgage.

If the property you’re looking to buy is valued at £400,000 and you want a £300,000 mortgage, the deposit you’ll need will be £100,000 (25%). The ratio of the loan amount to the property's value is known as the loan-to-value (LTV) ratio. So, in this case, your LTV would be 75%.

Here are some additional deposit examples based on different property values, assuming a £300,000 mortgage loan.

A lower LTV generally unlocks better mortgage rates and will attract a wider choice of lenders. This is because a smaller mortgage, in comparison to the property's value, is perceived as a lower risk.

How Much Is a Mortgage on a £300k House?

To get a mortgage on a house worth £300,000, you’d need at least a 5% deposit, which in this case would be £15,000, leaving a mortgage amount of £285,000. Using the same parameters as the section above - 25-year term at a realistic 4% interest rate - your monthly mortgage repayments would be £1,504. 

Again, your repayments can vary depending on several factors: 

• Interest rate

• Mortgage loan term

• Type of mortgage

• Deposit size

The table below shows the different mortgage amounts for a range of deposits, based on a £300k property value. You can use our mortgage repayment calculator (above) to input various term lengths and interest rates to see how this changes the monthly payments. 

What Else Affects Your Monthly Repayments and Loan Eligibility?

Beyond the interest rate, term, and your financial situation, other factors can affect your mortgage repayments and how lenders view your application.

• Your mortgage repayment method: You can choose a capital repayment mortgage, where your monthly payments clear the debt over time, or an interest-only mortgage, where you only pay the interest and repay the capital at the end of the term. For a £300,000 mortgage on a residential property, a capital repayment mortgage is the most common choice.

• Fixed rate vs. variable rate: The type of mortgage rate deal you choose will also affect your repayments. A fixed-rate mortgage locks in your interest rate for a set period, so your payments stay the same no matter what. A variable-rate mortgage, on the other hand, can change over time.

• Your credit history: Lenders review your credit report for any past issues like late payments, defaults, or CCJs. The cleaner your history, the more attractive you are. If you’ve had any adverse credit issues - don’t panic! There are specialist lenders who can still help (and we know who they are and where to find them!).

• Your employment history: Lenders prefer to see stable income and a consistent work history. If you're self-employed or have a more complex earnings history, it can make you a less attractive applicant in the eyes of certain lenders. Again, if this is you, don’t panic! There are still plenty of lenders who will consider you for a mortgage (and we know who they are and where to find them!).

What Other Costs Should You Budget For?

When you buy a home, there are other costs to consider besides your £300k mortgage repayments. It’s essential to budget for these up front so you don’t encounter any unpleasant surprises down the line.

• Stamp Duty: A tax you pay on property purchases over a certain value (currently £125,000). If you’re a first-time buyer, you qualify for additional Stamp Duty relief on homes up to a value of £500,000. 

• Legal Fees: Paid to your solicitor or conveyancer to handle all the legal paperwork and local authority searches (Can range anywhere between £500 to £1,500 depending on the type of property).

• Survey Fees: To check the property’s condition and highlight any structural issues that need to be fixed (Can range anywhere between £300 to £1,500, depending on the type of survey and property value).

• Mortgage Fees: Some mortgages have an arrangement or product fee, which can often be paid upfront or added to your loan (ranging from £0 to £2,000).

How Much Would a £300k Buy-to-Let Mortgage Cost?

Buy-to-let mortgages are usually arranged on an interest-only basis, meaning you only pay the interest part each month. That keeps costs low, but means you’ll still owe the original £300,000 at the end of the term.

Using our buy-to-let mortgage calculator, and as above, based on a realistic current interest rate of 4.5% (as of September 2025) with a loan term of 25 years, a £300,000 interest-only mortgage would cost £1,125 per month.

For buy-to-let arrangements, most lenders want rental income to cover 125–145% of the monthly mortgage payment. So, for a mortgage repayment of £1,125, the property will need to generate a monthly rental income of between £1,407 and £1,632.

Can You Get a £300,000 Mortgage with Bad Credit?

Yes, it’s possible. Having a low credit score or a history of bad credit doesn’t automatically mean you can’t get a mortgage. While some high-street lenders might say no, several specialist mortgage lenders (all of which have strong working relationships with our sister brand, Haysto) are usually much more willing to help. 

These lenders consider the entire picture, not just your credit score. They will consider the type of credit issue, when it happened, and the amount involved. It might mean you have to pay a slightly higher interest rate or put down a larger deposit, but it’s definitely not impossible.

Why Pick Picnic for Your £300,000 Mortgage?

Trying to find a mortgage deal on your own can be a challenging and time-consuming process. Having an experienced mortgage broker on your side - like us! - makes things much smoother and stress-free. 

Here’s how we can help:

• Finding you the best mortgage deals: Our mortgage team will already know which lenders are currently offering the most competitive rates, having access to the wider mortgage market rather than just a handful of high-street lenders. They can compare mortgage deals from over 100 lenders to find the one that’s right for your circumstances, including exclusive offers not generally available elsewhere. 

• Your mortgage, made simple from start to finish. Our online portal allows you to track your mortgage application step-by-step, sign and upload documents in seconds, and contact your mortgage team at any time. No back-and-forth emails. No printing. No guesswork. Everything you need, all in one place, so you can stay organised and in control of your mortgage journey. 

• Making mortgages possible, whatever the circumstances: Our team of advisors have a clear understanding of the eligibility criteria used by each lender and will identify the one that's best placed to help. Our sister brand, Haysto, has become the No.1 destination for customers who've been turned away elsewhere. For anyone with a complex income or adverse credit record - we’ve got your back!