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£400,000 Mortgages

At Deedle Finance, our mission is to help you find the best rates for £400,000 mortgages. We will take the time to get to know your requirements and search for the best deals available.

Our mortgage advisers compare thousands of mortgage products across the market to get you the most competitive rates. If you want a £400,000 mortgage, fill in our quick form to chat to one of our advisors for free!


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How To Get A £400,000 Mortgage

Step 1
Complete Deedle's Form
Quickly fill out our quick, secure form with key details such as your full name and your requirements. This allows us to assess your needs.
Step 2
Receive A Callback
After submitting the form, a member of our team of mortgage advisors will call you back to assist you with the whole mortgage process.
Step 3
Check If You Qualify
Our advisors will ask for important facts such as your yearly income, which helps to determine your borrowing potential and find the best interest rates for you.
Step 4
Receive Your Mortgage
Once we have found a loan to suit your borrowing requirements, our advisers can submit your mortgage application and sort your loan!
What Are £400,000 Mortgages?

What Are £400,000 Mortgages?

A £400,000 mortgage is a loan taken out to pay for the purchase of a property worth around £400,000.

Each month, the borrower must pay back the total value of them mortgage plus interest in installments. The interest may be either fixed or it may follow the standard base rate set by the Bank of England.

How Much Income Is Required for a £400,000 Mortgage?

At least £65,000 is needed, but a more comfortable estimate would be £75,000 and £85,000. Lenders typically use 4 or 4.5 times a person’s annual salary as a benchmark for what they’ll lend. This can be split between you and any co-buyers.

The income requirement for a £400,000 mortgage will depend on various factors, such as the lender’s criteria, the borrower’s financial situation, and the loan-to-income ratio allowed by the lender.

How Much Income Is Required for a £400,000 Mortgage?

Is a £400,000 Mortgage Considered Big?

Sometimes. In certain areas of the UK, particularly in expensive cities like London, £400,000 may be considered a moderate or average mortgage amount. In other, cheaper, regions or for individuals with lower incomes, a £400,000 mortgage may be considered significant.

Can I Afford a £400,000 Mortgage on a Single Income?

Perhaps! Affordability for a £400,000 mortgage on a single income will depend on various factors, including the lender’s criteria, the borrower’s income level, financial commitments, and other expenses, the borrower’s income-to-debt ratio, and more.

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Can I Switch My £400K Mortgage to a Different Lender?

Yes. This is called remortgaging, which involves replacing your current mortgage with a new one, typically to:

  • Secure a better interest rate
  • Change the mortgage term
  • Access additional borrowing

A mortgage broker like Deedle can help you to remortgage your property.

How Much Deposit Do I Need for a £400,000 Mortgage?

The deposit required for a £400,000 mortgage depends on the loan-to-value (LTV) ratio and the lender’s criteria. For example:

20% deposit

If you have a 20% deposit, you would need to provide £80,000, and the mortgage would cover the remaining £320,000 (80% LTV).

50% Deposit

With a 50% deposit, you would need to provide £200,000 upfront, and the mortgage would cover the remaining £200,000 (50% LTV).

70% Deposit

With a 70% deposit, you would need to provide £280,000 upfront, and the mortgage would cover the remaining £120,000 (30% LTV).

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What Are the Additional Costs Associated With a £400,000 Mortgage?

In addition to the monthly mortgage repayments, you should consider:

  1. Mortgage arrangement fees: Some lenders charge a fee for arranging the mortgage.
  2. Valuation fees: A valuation fee is charged by the lender to assess the value of the property.
  3. Legal fees: You may need a solicitor or conveyancer to handle the legal aspects of the property purchase.
  4. Stamp Duty Land Tax (SDLT): SDLT is a tax levied on property purchases over a certain threshold.
  5. Moving costs: You may need to budget for removal and relocation costs.

Can I Get a £400,000 Interest-Only Mortgage?

Yes but lenders have become more cautious in offering this type of mortgage and typically have stricter criteria. An interest-only mortgage allows you to pay only the interest on the loan each month, rather than making payments towards the principal amount borrowed.

Lenders may require a larger deposit, typically 25-50% of the property’s value, to qualify for an interest-only mortgage. They may also conduct thorough affordability assessments to ensure you have a credible repayment strategy in place.

Interest-only mortgages are not as prevalent as they used to be, and some lenders have withdrawn from offering them altogether. You may need to seek specialist lenders who still provide interest-only options or consult with a mortgage broker to explore available choices.

Frequently Asked Questions About £400,000 Mortgages

Can I Use Government Schemes to Help With the Deposit for a £400,000 Mortgage?

Yes, there are government schemes available in the UK that can assist with the deposit for a £400,000 mortgage such as Help to Buy.

Can I Get a £400,000 Mortgage if I Am Self-Employed?

Yes, but the process may be slightly different compared to individuals with regular employment. As a self-employed individual, you will need to provide evidence of your income. This typically includes submitting accounts, tax returns, and bank statements for the past two to three years.

How Long Can I Take a £400,000 Mortgage For?

Typical mortgage terms in the UK range from 25 to 35 years, although shorter and longer terms may also be available.

Can I Make Overpayments On My £400,000 Mortgage?

Yes, many mortgages allow you to make overpayments on a £400,000 mortgage. This allows you to save some money on interest in the long run.

Can I Transfer My £400,000 Mortgage to a New Property if I Move House?

Yes, it is possible to transfer your £400,000 mortgage to a new property when you move house. This is known as “porting” your mortgage.