An example of what you could pay on a 20000 mortgage could be: £20000 over 25 Years at a rate of 5.5 % will incur a monthly repayment of £122.82 and a total repayable of £36846.00

How much deposit do I need for a 20000 mortgage?

A 20000 mortgage will mean you have at least between 5% – 20% for a mortgage deposit.

This means if you want a 20000 mortgage you already have between £1,000 and £4,000 for your mortgage deposit.

This will be the first basis of your affordability of a 20000 mortgage.

You can improve your mortgage affordability by using one of the governments first-time buyer schemes.

This will mean you can put down a smaller mortgage deposit or be eligible for a reduction in the property price.

In reality, due to the fact that the mortgage is for £20,000 you will not need a mortgage deposit.

Some of the mortgages you could get with a 20000 mortgage include:

Fixed-rate 20000 mortgages:

With these mortgages, the rates are fixed for a period of 2, 3 or 5 years and provides you certainty over your mortgage term.

Variable rate 20000 mortgages:

You can access a host of variable mortgages through a mortgage lender and this mortgages will have a variable rate which can be increased or decreased at any time by the mortgage lender.

Tracker 20000 mortgages:

You can access a host of tracker mortgages from most mortgage lenders. These mortgages will usually track the bank of England’s rate and will move in line with it although it may not be the exact rate but rather a rate which will increase by the same point or increase by the same point as the bank of England rate.

20000 Remortgages:

You can access a host of remortgage options for a 20000 remortgage.

20000 buy to let:

Some buy to let mortgage lenders have a minimum amount they will lend but you may be able to get a 20000 buy to let mortgage with some specialist buy to let mortgage lenders. A buy to let mortgage broker will be able to assist you in this regard.

First-time buyer government schemes which you could get with a 20000 mortgage include:

You may be eligible for some first time home buyer government schemes which may reduce the total cost of the property or increase your mortgage deposit.

  • Lifetime ISA– gives you a government bonus of £1,000 if you save the maximum £4,000 a year.
  • Help to buy ISA– gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
  • Help to buy equity loan- gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
  • Shared ownership- You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
  • Armed forces help to buy- similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
  • Rent to buy- This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
  • Right to buy- allows you to buy your home at a discount price.
  • Preserved right to buy- same as above.
  • Right to acquire- same as above.

Depending on where you live, you may also be able to take advantage of home buying schemes provided by your local council. Example: In Norwich the local councils provide the Norwich home options scheme.

The second basis of affordability for a 20000 mortgage will be your salary.

Most mortgage lenders use your annual salary x a multiple to see how much they could lend to you.

If you want a 20000 mortgage you will need your salary when multiplied by a multiple of 3 to be at least 20000.

Most lenders will use multiples of between 3 and 5.

What do the repayments on a 20000 mortgage look like?

Mortgage repayments on a 20000 mortgage will differ based on lenders and it wouldn’t be wise to simply provide details that can change at any moment here.

To see if you are eligible for a 20000 mortgage, speak to a mortgage broker.

How much would a 20000 mortgage cost per month?

£20000 over 25 Years at a rate of 5.5 % will cost £122.82 per month.

What’s the monthly payment on a 20000 mortgage?

The monthly payment on a 20000 mortgage will vary based on the APR which you pay on the mortgage. e.g over a term of 25 years at an APR of 5.5% you will pay £122.82 as your monthly payment but with an APR of 1.5% over the exact mortgage term of 25 years, you will pay £79.99 as your monthly payment.

Can I get a mortgage for 20000?

Yes, you can get a mortgage for 20000. Speak to a mortgage broker to further assess your mortgage affordability but there are mortgage lenders who are willing to lend you 20000.

Can you get a 0% LTV 20000 mortgage?

Yes, there are mortgage lenders who will offer a 20000 mortgage.

They are a certain type of mortgage known as a family springboard mortgage, they include mortgages from lenders such as the Barclays family springboard mortgage, the lloyds lend a hand mortgage or the post office family link mortgage.

Can you get a 20000 mortgage with bad credit?

Yes, you may be able to get a 20000 mortgage with bad credit but this will heavly depend on your circumstances. You should always look to build credit when you have bad credit as this could improve your mortgage affordability.

A bad credit mortgage broker may also be in a better position to carefully analyse your situation and provide you with suitable bad credit mortgage lenders willing to lending to you.

If you are bankrupt then you may need to wait for 12 months after you have been discharged from being bankrupt to get a 20000 mortgage

Bad credit may include:

  • A CCJ
  • An IVA
  • A debt management plan
  • A default
  • A bankruptcy
  • A home repossession

How to get a 20000 mortgage?

Getting a mortgage can be a very difficult process if not handled with care.

If you are considering getting a mortgage for 20000 then using a mortgage broker may be a good choice as mortgage brokers usually have access to many more products than any specific mortgage lender.

Mortgage brokers will also usually have access to specific deals from mortgage lenders as well as experience on which mortgage lenders will be more likely to accept your case. This will help you avoid getting rejected on a mortgage application and having to build credit due to the damage a rejection might do to your credit score.

If you have bad credit or are self-employed then specialist mortgage brokers such as bad credit mortgage brokers or self-employed mortgage brokers may be useful.

What deposit do I need for a £20,000 mortgage?

As the mortgage required is below £25,000 you will find that most mortgage lenders will simply consider this as a personal loan. This means you may not need any mortgage deposit for a £20,000 mortgage. 


How much will a £20,000 personal loan cost?

The cost of a £20,000 personal loan will depend heavily on your credit score and the APR you are able to get. It will also depend heavily on the term of the personal loan. You can use a loan calculator to work out what the cost may be.


How much will a £20,000 secured loan cost?

The cost of your £20,00 secured loan will depend heavily on how much equity you have in your house as well as what your credit score is.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.