Mortgage Repayment Calculator
Estimate your monthly mortgage payments, total interest cost, and see how changes affect your repayments.
🏠 Calculate Your Mortgage
Estimate your mortgage costs.
Enter your property details to see an estimate of your monthly payments and the total cost over the loan term.
This calculator helps you understand:
- How much you might pay each month.
- The total interest you could pay.
- Your Loan-to-Value (LTV) ratio.
- How changes in term or rate affect costs.
Results are for standard UK repayment mortgages. Does not include fees or insurance.
📊 Mortgage Comparison Analysis
See how different rates and terms impact your costs.
Compare Mortgage Scenarios
Tools to compare different interest rates, loan terms, and the impact of overpayments are coming soon.
Visualize how choices affect monthly payments and total interest paid.
🎓 Understanding Your Mortgage
Repayment vs. Interest-Only
This calculator estimates a Repayment Mortgage. Each monthly payment covers both the interest charged for that month and repays a small part of the original loan (the principal). Over the term, the principal reduces until the loan is fully paid off.
An Interest-Only mortgage means your payments only cover the interest. The principal amount borrowed remains the same and must be repaid in full at the end of the term, usually through savings, investments, or selling the property.
What is Loan-to-Value (LTV)?
LTV compares the mortgage amount to the property's value, expressed as a percentage. If you buy a £300,000 home with a £60,000 deposit, your mortgage is £240,000. Your LTV is (£240,000 / £300,000) * 100 = 80%. Generally, a lower LTV (larger deposit) results in lower interest rates from lenders as it represents less risk.
What This Calculator Assumes
This is an estimate for illustrative purposes only and does not constitute financial advice. It assumes:
- The interest rate remains constant for the entire loan term (like a fixed-rate mortgage for the whole period, which is uncommon in the UK market reality but useful for basic comparison).
- You are taking out a standard Capital & Interest Repayment mortgage.
- It does not include additional costs such as lender arrangement fees, valuation fees, legal fees, or buildings insurance.
Always speak to a qualified, independent mortgage advisor before making any decisions. They can assess your individual circumstances and recommend suitable products.
📱 How to Use This Mortgage Calculator
Estimate your potential monthly mortgage payments with these simple steps:
Step 1: Enter Property Price
Input the purchase price of the property you're considering.
Step 2: Enter Deposit Amount
Enter the total amount of your deposit savings.
Step 3: Set Loan Term
Choose the mortgage duration in years (e.g., 25, 30, 35). Longer terms mean lower monthly payments but higher total interest.
Step 4: Input Interest Rate
Enter the annual interest rate (APR) for the mortgage deal you're considering.
✅ Get Your Estimate
Click "Calculate Mortgage Payments" to see the estimated monthly cost, total interest, and LTV.
🔑 Common Mortgage Terms Explained
Navigating mortgage jargon can be tricky. Here are some key terms:
Principal
The original amount of money you borrow from the lender (Property Price minus Deposit).
Interest Rate (APR)
The percentage charged by the lender for borrowing the money. APR includes fees.
Loan Term
The length of time over which you agree to repay the mortgage (e.g., 25 years).
Loan-to-Value (LTV)
The mortgage amount as a percentage of the property's value. Lower LTV usually means better rates.
Fixed Rate vs Variable Rate
Fixed: Interest rate stays the same for a set period (e.g., 2, 5 years). Variable: Rate can go up or down, often tracking the Bank of England base rate.
Repayment Mortgage
Your monthly payments cover both interest and capital, so the loan is fully repaid at the end of the term.
⚠️ Don't Forget Fees!
Mortgages often come with arrangement fees, valuation fees, and legal costs. Factor these into your total borrowing cost.
💡 Real-World Mortgage Examples
See how different inputs affect monthly payments and total interest paid:
Example 1: First Time Buyer (£250k Property, 10% Deposit, 30yr Term, 5% Rate)
Inputs:
- • Property Price: £250,000
- • Deposit: £25,000 (10%)
- • Loan Amount: £225,000
- • Term: 30 Years
- • Rate: 5.0%
Results:
- • Monthly Payment: £1,207.86
- • Total Interest: £209,830
- • Total Repaid: £434,830
- • LTV: 90%
Example 2: Home Mover (£400k Property, 25% Deposit, 25yr Term, 4.5% Rate)
Inputs:
- • Property Price: £400,000
- • Deposit: £100,000 (25%)
- • Loan Amount: £300,000
- • Term: 25 Years
- • Rate: 4.5%
Results:
- • Monthly Payment: £1,669.75
- • Total Interest: £200,925
- • Total Repaid: £500,925
- • LTV: 75%
Example 3: Remortgage (£150k Loan, 15yr Term, 4.0% Rate)
Inputs:
- • Property Price: N/A (Remortgage)
- • Deposit: N/A
- • Loan Amount: £150,000
- • Term: 15 Years
- • Rate: 4.0%
Results:
- • Monthly Payment: £1,109.53
- • Total Interest: £49,715
- • Total Repaid: £199,715
- • LTV: Depends on property value
💡 Key Takeaways
- • A larger deposit significantly reduces monthly payments and total interest.
- • A shorter loan term increases monthly payments but drastically cuts the total interest paid.
- • Even small differences in the interest rate have a huge impact on the total cost over the life of the mortgage.
- • Aim for the lowest LTV possible to access better interest rates.
❓ Mortgage Frequently Asked Questions
How much can I actually borrow?
Lenders typically offer 4 to 5 times your annual income (or joint income). However, affordability checks also consider your deposit size, credit history, existing debts, and monthly outgoings. Use lender-specific affordability calculators for a better estimate.
What's the difference between a fixed and variable rate?
A fixed rate locks your interest rate for a set period (e.g., 2, 5, 10 years), providing payment certainty. A variable rate (tracker or standard variable rate - SVR) can fluctuate, usually following the Bank of England base rate, meaning payments can rise or fall.
Is it better to choose a shorter or longer mortgage term?
Shorter term (e.g., 15-20 years): Higher monthly payments, but you pay significantly less total interest and own your home faster. Longer term (e.g., 30-35 years): Lower monthly payments (more affordable), but you pay much more interest over the life of the loan.
Can I make overpayments on my mortgage?
Most lenders allow overpayments, typically up to 10% of the outstanding balance per year without penalty (Early Repayment Charges - ERCs). Overpaying reduces the principal faster, saving interest and potentially shortening the term. Check your lender's specific terms.
What other costs are involved in buying a home?
Besides the deposit, factor in: Stamp Duty (use our Stamp Duty Calculator), mortgage arrangement fees, valuation fees, solicitor/conveyancing fees, survey costs, removal costs, and initial furnishing/decorating costs.
What is APRC (Annual Percentage Rate of Charge)?
APRC represents the total cost of the mortgage, including the interest rate and mandatory fees, expressed as an annual percentage. It helps compare the overall cost of different mortgage deals, especially after any initial fixed-rate period ends.
When should I remortgage?
Consider remortgaging when your current fixed-rate deal is about to end (to avoid moving onto the lender's higher SVR), if you want to borrow more money, or if significantly better rates become available. Start looking 3-6 months before your deal ends. Be mindful of any ERCs.
📞 Need Mortgage Advice?
This calculator is for estimates only. For personalised advice, speak to an independent, regulated mortgage advisor. They can search the market and recommend products suitable for your circumstances. Check unbiased resources like MoneyHelper or find advisors via Unbiased.co.uk.
💡 Smart Tips for Getting a Mortgage
Improve your chances and potentially save money with these tips:
1. Boost Your Credit Score
Check your credit report (Experian, Equifax, TransUnion). Ensure you're on the electoral roll, pay bills on time, reduce existing debts, and close unused accounts. A better score means access to lower interest rates.
2. Save the Biggest Deposit Possible
Aim for at least 10-15% deposit. Higher deposits mean lower LTV, significantly reducing interest rates. Explore Lifetime ISAs (LISA) for a 25% government bonus on savings for first homes.
3. Shop Around & Compare Deals
Don't just go to your bank. Use comparison sites and speak to an independent mortgage broker who can access deals across the market, including lender-exclusives.
4. Factor in ALL Costs
Budget not just for the deposit, but also for fees (arrangement, valuation, legal), Stamp Duty, surveys, moving costs, and initial repairs/furnishing. Get quotes early.
5. Consider Overpayments Carefully
Even small overpayments can save thousands in interest and shorten your term. Check your lender's annual overpayment limit (usually 10%) to avoid ERCs.
6. Get a Mortgage in Principle (AIP)
An AIP (Agreement in Principle) shows how much a lender might offer. It strengthens your position when making offers on properties. It usually involves a soft credit check.
⚠️ Important Disclaimer
These tips are for general guidance only. Your ability to get a mortgage depends on individual circumstances and lender criteria. Always seek professional financial advice tailored to your situation.
📈 Understanding Mortgage Rates
The interest rate you're offered depends on several factors:
Bank of England Base Rate
Variable and tracker mortgages often follow this rate. Changes impact monthly payments directly.
Loan-to-Value (LTV)
Lower LTV (bigger deposit) generally means lower rates as the lender perceives less risk.
Credit History
A good credit score demonstrates reliability and helps secure better rates. Defaults or missed payments increase perceived risk.
Fixed vs Variable
Fixed rates offer certainty but might be slightly higher initially. Variable rates can be lower but carry the risk of increases.
Product Fees
Some deals have lower rates but higher arrangement fees. Consider the total cost (APRC) when comparing.
Loan Size & Term
Very large or very small loans, or unusual terms, might attract different rates.
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