London Mortgage Calculator 2026
Calculate monthly mortgage payments for London properties. Average house price: £550,000.
Calculate Your London Mortgage
Enter your desired property price, deposit, and interest rate to see exact monthly payments and total cost over the mortgage term.
Open London Mortgage CalculatorBuying a Home in London — What You Need to Know
The average house price in London is currently £550,000. London remains the most expensive property market in the UK, with prices significantly above the national average.
To purchase an average-priced property in London with a 10% deposit, you would need £55,000 upfront, plus additional costs for stamp duty (£15,000), legal fees, surveys, and moving costs. For a 20% deposit (often securing better interest rates), you'd need £110,000.
At current interest rates of around 5%, your estimated monthly mortgage payment on the averageLondon property would be approximately £2,894 per monthover a 25-year term. This represents roughly 67% of the average London salary.
London Mortgage Affordability
Most UK lenders will offer mortgages of 4-4.5 times your annual salary. With the average London salary of £52,000, this means a typical borrowing capacity of £234,000. To afford the average London property, you may need:
- A larger deposit to reduce the mortgage amount needed
- A joint mortgage with combined incomes
- First-Time Buyer schemes like Help to Buy or Shared Ownership
- Consider properties below the average price point
London Mortgage Payments by Deposit (2026)
Estimated monthly repayments on an average London home (£550,000) over a 25-year term at a 5% interest rate, for different deposit sizes.
| Deposit | Deposit amount | Loan | Monthly | Total interest |
|---|---|---|---|---|
| 10% | £55,000 | £495,000 | £2,894 | £373,116 |
| 15% | £82,500 | £467,500 | £2,733 | £352,388 |
| 25% | £137,500 | £412,500 | £2,411 | £310,930 |
Estimates for illustration only — use the calculator above for figures based on your exact price, deposit, rate and term.
London Mortgage FAQs
How expensive is property in London?
At £550,000, London ranks 1st of 12 UK regions for average house price — about 10.6× the local average salary of £52,000.
What deposit do I need to buy in London?
A 10% deposit on the average London home is £55,000, while a 20% deposit (which usually unlocks better rates) is £110,000. A larger deposit lowers both your monthly payment and the total interest you pay.
What would the monthly payment be on an average London home?
With a 10% deposit at 5% over 25 years, monthly repayments on an average London property are around £2,894. A lower rate or longer term reduces the monthly figure but changes the total interest.
Stamp Duty in London
For the average London property at £550,000, you would pay approximately £15,000 in Stamp Duty Land Tax (SDLT). First-time buyers may qualify for relief on properties up to £625,000.
Calculate Your Exact Stamp DutyWhat's Your Take-Home Pay in London?
Know your actual take-home pay to better understand mortgage affordability.
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