£120,000 mortgage: monthly payments

By The PocketSums team. Updated 30 September 2026. How we calculate

Borrowing £120,000? At 4.5% over 25 years you would pay £667.00 a month. Every rate and term is compared below.

At 4.5% over 25 years
£667 a month
Total interest
£80,100
Income needed (4.5x)
£26,667
Overpay £60 a month
save £12,686
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Monthly payment£667.00a month

Borrowing £120,000 (89% loan to value). Total repaid £200,100, of which £80,100 is interest.

A £120,000 repayment mortgage at 4.5% over 25 years costs £667.00 a month. You would repay £200,100 in total, of which £80,100 is interest.

Monthly payments on £120,000 by rate and term

Rate 20 years 25 years 30 years 35 years
3.5% £696 £601 £539 £496
4% £727 £633 £573 £531
4.5% £759 £667 £608 £568
5% £792 £702 £644 £606
5.5% £825 £737 £681 £644
6% £860 £773 £719 £684

How £120,000 is paid off over 25 years

£0k£50k£100k£150k0y5y10y15y20y25y
  • Balance still owed
  • Interest paid so far
At 4.5%. Interest is heaviest in the early years, when the balance is highest.

Total interest on £120,000 by term

  1. 20 years£62,203 (£759 a month)
  2. 25 years£80,100 (£667 a month)
  3. 30 years£98,887 (£608 a month)
  4. 35 years£118,522 (£568 a month)

A longer term lowers the monthly payment but adds interest. Stretching from 25 to 35 years saves £99 a month and costs £38,422 more overall.

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Questions people ask

What are the monthly payments on a £120,000 mortgage?

£667.00 a month on a 25 year repayment mortgage at 4.5%. At 4% it is £633.40 and at 5% it is £701.51. Interest only at 4.5% would be £450.00.

What salary do I need for a £120,000 mortgage?

At the usual 4.5 times income, about £26,667 for a single buyer or a joint household income. Some lenders go to 5 or 5.5 times, which would need around £21,818.

How much does overpaying a £120,000 mortgage save?

Paying £60 extra a month at 4.5% clears it about 3 years 6 months early and saves roughly £12,686 in interest. Check your lender's overpayment limit, often 10% a year on fixed deals.