mortgage calculator

Mortgage Calculator UK

Need to calculate mortgage repayments quickly and accurately? Our free Mortgage Calculator helps you estimate monthly mortgage payments, total repayment costs and total interest based on property price, deposit amount, mortgage interest rate and mortgage term.

Whether you are:

• buying your first home
• moving house
• remortgaging to a better deal
• comparing fixed and variable mortgage rates
• checking affordability before speaking to a lender

This simple online Mortgage Calculator helps you understand the true cost of borrowing and gives instant repayment estimates for UK mortgages.

How to Calculate Mortgage Repayments

Mortgage repayments are based on:

• the mortgage loan amount
• the interest rate
• the mortgage term
• the repayment type

Basic Mortgage Formula:

Mortgage Amount = Property Price - Deposit

Monthly Repayment = Based on mortgage amount, interest rate and mortgage term

Most UK mortgages are repayment mortgages, meaning each monthly payment includes:

• part of the original loan amount
• interest charged by the lender

At the start of a mortgage, more of the monthly payment goes towards interest. As the balance reduces, more goes towards repaying the mortgage itself.

Mortgage Repayment Formula

Mortgage lenders use a repayment formula to calculate monthly payments over the mortgage term.

Mortgage Repayment Formula:

M = P × [ r(1+r)ⁿ ] ÷ [ (1+r)ⁿ - 1 ]

Where:

• M = monthly repayment
• P = mortgage amount
• r = monthly interest rate
• n = total number of monthly payments

This formula ensures the mortgage is fully repaid by the end of the agreed term.

Mortgage Calculation Example

If a property costs £250,000 and you have a £25,000 deposit:

• £250,000 - £25,000 = £225,000 mortgage amount
• At 5% interest over 25 years, the monthly repayment is approximately £1,315.18
• Total repayment is approximately £394,553.21
• Total interest paid is approximately £169,553.21

This example shows how mortgage interest can significantly increase the total amount repaid over the lifetime of the loan.

What Is a Mortgage?

A mortgage is a secured loan used to buy property or land. The lender provides the money to purchase the property, and the borrower repays the loan over an agreed number of years.

Mortgages are commonly taken over:

• 20 years
• 25 years
• 30 years
• 35 years

If mortgage repayments are not maintained, the lender may repossess the property.

What Is a Deposit?

A deposit is the upfront payment you contribute towards buying a property. The remaining amount is borrowed through a mortgage.

For example:

• 10% deposit on a £300,000 property = £30,000 deposit
• Mortgage required = £270,000

A larger deposit can:

• reduce monthly repayments
• reduce total interest paid
• improve mortgage rates available
• increase approval chances with lenders

What Is Loan to Value (LTV)?

Loan to Value (LTV) is the percentage of the property value that is borrowed through the mortgage.

LTV Formula:

LTV = (Mortgage Amount ÷ Property Value) × 100

Examples:

• £180,000 mortgage on a £200,000 property = 90% LTV
• £150,000 mortgage on a £200,000 property = 75% LTV

Lower LTV mortgages usually offer lower interest rates.

Types of Mortgages

Repayment Mortgage

A repayment mortgage is the most common type in the UK. Monthly payments include both interest and part of the mortgage balance.

At the end of the mortgage term, the mortgage is fully repaid.

Interest Only Mortgage

With an interest-only mortgage, monthly payments only cover the interest charged by the lender.

The original mortgage amount still needs to be repaid at the end of the term.

Fixed Rate Mortgage

A fixed rate mortgage keeps the interest rate the same for a set period, often:

• 2 years
• 3 years
• 5 years
• 10 years

This provides predictable monthly repayments.

Variable Rate Mortgage

A variable mortgage rate can increase or decrease depending on the lender or Bank of England base rate.

Monthly payments can change over time.

Tracker Mortgage

A tracker mortgage follows the Bank of England base rate plus a set percentage.

If interest rates rise, monthly repayments usually increase.

Mortgage Interest Explained

Mortgage interest is the cost charged by the lender for borrowing money.

Even small interest rate changes can significantly impact:

• monthly repayments
• total interest paid
• overall mortgage cost

Example:

• £250,000 mortgage at 3% over 25 years = approximately £1,186 per month
• £250,000 mortgage at 6% over 25 years = approximately £1,611 per month

Higher interest rates can increase repayments by hundreds of pounds each month.

Mortgage Term Explained

The mortgage term is the length of time used to repay the mortgage.

Common mortgage terms include:

• 20 years
• 25 years
• 30 years
• 35 years

A longer mortgage term:

• reduces monthly repayments
• increases total interest paid

A shorter mortgage term:

• increases monthly repayments
• reduces total interest paid

How Much Mortgage Can I Afford?

Mortgage lenders assess affordability using:

• income
• outgoings
• existing debts
• credit history
• deposit size
• employment status

Many UK lenders offer between:

• 4x income
• 4.5x income

Example:

• £40,000 salary × 4.5 = approximately £180,000 mortgage

Actual mortgage offers vary depending on personal circumstances and lender criteria.

Mortgage Overpayments

Making mortgage overpayments can:

• reduce total interest paid
• shorten the mortgage term
• help repay the mortgage earlier

Example:

• Overpaying by £100 per month on a £250,000 mortgage could save thousands in interest over time

Some lenders may charge early repayment fees if overpayment limits are exceeded.

First Time Buyer Mortgage Advice

First time buyers should consider:

• deposit requirements
• stamp duty costs
• solicitor fees
• survey costs
• mortgage arrangement fees
• credit score

Saving a larger deposit can improve mortgage deals and reduce monthly repayments.

Remortgaging Explained

Remortgaging means switching to a new mortgage deal, either:

• with the same lender
• with a different lender

People remortgage to:

• reduce monthly payments
• secure a better interest rate
• release equity
• move from a variable rate to a fixed rate

Common Mortgage Examples

• £150,000 property with 10% deposit = £135,000 mortgage
• £200,000 property with 10% deposit = £180,000 mortgage
• £250,000 property with 10% deposit = £225,000 mortgage
• £350,000 property with 15% deposit = £297,500 mortgage
• £500,000 property with 20% deposit = £400,000 mortgage

Why Use Our Mortgage Calculator?

• Estimate monthly mortgage repayments instantly
• Calculate mortgage amount after deposit
• See total repayment and total interest
• Compare mortgage scenarios quickly
• Useful for house buying and affordability planning
• Works on desktop and mobile devices
• Fast and simple to use
• No registration required

Mortgage Calculator FAQs

How accurate is this Mortgage Calculator?

This calculator provides estimated mortgage repayments based on the figures entered. Actual mortgage offers and repayments may vary depending on lender fees, credit profile and mortgage type.

What mortgage term should I choose?

A longer mortgage term reduces monthly repayments but increases total interest paid. A shorter mortgage term increases monthly payments but reduces the total borrowing cost.

What is a good mortgage deposit?

Many UK lenders require at least a 5% deposit, although larger deposits often provide access to better mortgage rates.

Can I overpay my mortgage?

Most lenders allow mortgage overpayments, although some may apply limits or early repayment charges.

Do mortgage rates change?

Yes. Variable and tracker mortgage rates can rise or fall depending on market conditions and Bank of England base rates.

What happens if interest rates increase?

Higher mortgage interest rates usually increase monthly repayments unless you are on a fixed rate mortgage.

What is APR?

APR stands for Annual Percentage Rate and includes both the interest rate and certain mortgage fees to show the total borrowing cost.

Can self-employed people get a mortgage?

Yes. Many lenders offer mortgages to self-employed applicants, although additional proof of income is often required.

Important Information

This Mortgage Calculator is provided for educational and informational purposes only and does not constitute financial advice. Mortgage rates, fees and lending criteria vary between lenders. Always seek professional mortgage or financial advice before making borrowing decisions.