Monthly cost of a £350,000 mortgage in the UK (2026)

A £350,000 home loan sits exactly inside the first-time buyer relief taper, where every extra pound of borrowing carries a 5p stamp-duty cost on top of the loan itself. At the Bank of England's most recent 75% loan-to-value 5-year fixed quoted rate of 4.32% (April 2026), a £350,000 mortgage over 25 years costs £1,910 a month. Over the life of that loan, the interest alone totals £222,948 — almost two-thirds of the principal borrowed.

This guide walks through the payment matrix at five interest-rate scenarios and three term lengths, the income required at each loan-to-income (LTI) multiple, the deposit needed to land on a property at five LTV bands, and the stamp-duty bill in England, Scotland and Wales. It uses Croydon's CR0 postcode area as a worked example — the single largest UK postcode area for sales in the £388,000–£466,000 band (359 completions in 2025, the property-price zone that maps to a £350,000 loan).

What a £350,000 loan looks like at today's rate

Mortgage payment depends on three numbers: loan amount, interest rate, and term length. Hold the loan at £350,000 and vary the other two:

The longer the term, the lower the monthly payment — but the total interest paid balloons. At 4.32%:

Stretching from 25 to 35 years cuts the monthly bill by £292 but adds £106,444 of interest over the life of the loan. At 6.00%, the same 25-to-35-year stretch costs an extra £161,663 in interest.

How much you need to earn to borrow £350,000

UK lenders cap most residential lending at 4.5× a single income, with some pushing to 5.5× for higher earners on professional-tracked schemes. The Financial Conduct Authority's MCOB rules also require an affordability stress test at a higher rate than the borrower will actually pay on a fixed deal — the lender models whether the borrower could still afford the payment if rates jumped.

Joint applicants change the picture: most high-street lenders pool both incomes and apply the same 4.5× multiple to the combined figure, though the size of the uplift varies by lender, dependants, and any unsecured debt the applicants are servicing.

Deposit and property price at five LTV bands

If the loan is fixed at £350,000, the deposit required and the property price reachable depend entirely on the loan-to-value ratio the lender accepts:

A 95% LTV deal in the current market generally carries a higher headline rate than the BoE-quoted 75% LTV figure (sometimes 60–100 basis points more); the higher you can push the deposit, the closer your rate will sit to the 4.32% benchmark above. Speak to a qualified mortgage adviser before committing — your actual rate depends on lender, credit profile, employment type, and the product on the day of application.

Stamp duty: the £350,000 loan zone hits the FTB taper

The £388,000–£466,667 property-price range that a £350,000 loan typically lands in straddles the most consequential single zone in the post-April-2025 stamp duty regime: the first-time buyer relief taper between £300,000 and £500,000.

For first-time buyers, the rule is binary: nothing on the first £300,000, then 5% on every pound between £300,001 and £500,000, with the entire relief lost if the property tips over £500,000. Standard buyers (anyone who has previously owned residential property) get the 0% slab only up to £125,000, then 2% to £250,000, then 5% from £250,001 to £925,000.

At the three working LTV-implied prices for a £350,000 loan:

*Additional-property includes the 5% surcharge on the full price (HMRC SDLT regime, effective 31 October 2024).

The standard-vs-FTB swing is meaningful: at £437,000 a first-time buyer pays £5,000 less SDLT than a standard buyer, which on a 25-year £350,000 loan at 4.32% is the equivalent of roughly two and a half monthly payments wiped off the upfront cost.

Cross-border: same £437,000 home in three regimes

The four UK SDLT regimes diverge sharply at the £350,000-loan zone. Using £437,000 (the 80% LTV anchor) as the constant price:

Scotland and Wales do not mirror England's £125,000 / £250,000 slab boundaries. Scotland's LBTT regime has a sharper jump at £325,000 (rate becomes 10% above that threshold), pulling the tax bill on a £437,000 home up to £17,050 — £5,200 more than the equivalent purchase in England. Wales has no first-time buyer relief at all, so a Welsh FTB and a Welsh standard buyer both pay the same £13,275 on a £437,000 home. See the stamp duty first-time buyer relief guide for the full slab tables.

Rate-shock stress test: how a +1/+2/+3pp move feels on £350,000

Five-year fixes lock the rate in for the first part of the term — but at remortgage, the borrower goes back to whatever the market is pricing. The FCA's MCOB rules require lenders to test affordability at a higher rate than the headline product rate. Same loan, same 25-year term, BoE 4.32% base:

A +2pp shock — well within the BoE-quoted-rate range seen during the 2022-23 cycle — adds £4,968 to annual outgoings on a £350,000 loan. For context, the BoE 75% LTV 5-year fixed quoted rate hit 5.93% in summer 2023 against a 2.34% low in October 2021 — a roughly 360-basis-point swing inside two years.

What the rate has actually done in the last 12 months

Bank of England monthly file, 75% LTV 5-year fixed quoted rate:

Net move over twelve months: -30 basis points (4.62% → 4.32%). On a 25-year £350,000 loan, that 30bp drop is the difference between £1,973/mo (at 4.62%) and £1,910/mo (at 4.32%) — about £756 a year. Quoted rates can move further at remortgage, in either direction; the table is descriptive, not predictive.

Worked example: Croydon CR0

CR0 sits at the top of the table for 2025 sales in the £388,000–£466,000 zone — 359 completions between January and December last year, averaging £425,632 (HM Land Registry, accessed May 2026). The £350,000-loan zone is the dominant family-home price band across CR0's catchment, which covers South Croydon, Addiscombe, Shirley, New Addington and large parts of the borough's residential interior.

Council tax for Croydon stands at £2,599.91 a year at Band D for 2026-27 (gov.uk billing authority data). A buyer paying £437,000 with a £350,000 loan on a 25-year, 4.32%, 80% LTV fixed deal would face a year-one cash-out roughly as follows:

Energy running cost depends heavily on EPC rating. The 33,521 EPC certificates issued for CR0 break down at A:16, B:656, C:8,561, D:16,458, E:6,422, F:1,102, G:306 — roughly 27.5% rated C or better, the remaining 72.5% D or worse, broadly in line with the English domestic stock distribution. A D-rated 90 m² home will typically run around £400-£700 a year above an equivalent C-rated home at current Ofgem-cap tariffs, depending on heating type and tenure. Try a specific Croydon postcode via the Homecost postcode tool to see the modelled annual energy cost for individual properties in the CR0 area.

The £350,000 round-number cliff in the data

One pattern only visible in the bulk transaction data: vendor pricing clusters hard at exactly £350,000. In 2025 the HM Land Registry recorded 8,229 sales at exactly £350,000 against just 1,842 completions in the £350,001 to £354,999 deadzone immediately above — a 4.5× cliff in sale frequency at the round number. The 2024 control year shows 8,546 sales at exactly £350,000 vs 2,228 in the same deadzone (3.8× cliff) — the bunching is structural, not a 2025 artefact.

What makes the £350,000 cliff interesting is that it is not a tax-slab boundary. The 5% stamp-duty rate applies identically at £349,999 and £350,001 for a standard buyer; for a first-time buyer the marginal cost of a pound above £350,000 is just five pence in extra SDLT. The cliff is therefore almost entirely round-number anchoring — vendors pricing to the psychologically clean threshold and buyers bunching their offers at the same level. The pattern slots into a broader cluster Homecost has documented across the £125,000 (1.1×), £200,000 (3.0×), £250,000 (3.3×), £300,000 (4.7×), £400,000 (5.8×), £500,000 (10.4×), £750,000 (12.6×), £1m (29.6×) and £1.5m (43.1×) thresholds, with magnitude scaling with absolute price. See the £500,000 stamp duty cliff edge analysis for the closest sibling piece on the sharpest single tax-driven bunching point in the dataset.

The £350,000 loan in the wider mortgage-payment ladder

This piece sits between two existing Homecost mortgage-cost guides on the payment ladder:

• A £300,000 loan at the same 4.32%/25-year scenario costs £1,637 a month — see the monthly cost of a £300,000 mortgage guide for the Bristol BS15 worked example.
• A £500,000 loan at the same scenario costs £2,728 a month — see the monthly cost of a £500,000 mortgage guide for the E17 Walthamstow worked example.

The closest matching whole-home cost-stack piece is the true cost of buying a £400,000 home guide, which covers the same FTB taper but at the full property-price level rather than the loan amount, anchored on a Birmingham worked example.

Sources and methodology

This piece draws on 30.98m HM Land Registry Price Paid transactions back to 1995, 29.21m EPC Domestic certificates, 1.76m UK postcodes from the OS Code-Point Open file, the gov.uk council tax billing-authority data for 2026-27, and the Bank of England's monthly quoted-rate file. The £350,000-loan property-price band (£388,000–£466,667 across the 75–90% LTV range) was queried directly against the underlying transaction table, dated to the May 2026 file release. Browse other Cost Intelligence guides for the broader mortgage-cost cluster.

This is general information, not financial advice. Your monthly payment depends on the rate, term and product your lender agrees, and the stamp-duty figures here apply to single buyers on a standard residential purchase — joint-buyer, additional-property and non-UK-resident rules can change the bill materially. Speak to a qualified mortgage adviser and a conveyancer before acting.