Mortgage Calculator
Plan your home purchase with confidence
The most important financial decision we will ever make is buying a home. It is one of the most significant financial commitments you'll ever make. With our mortgage calculator, you can estimate your monthly repayments and understand how much your house will truly cost over time.
Our free mortgage calculator helps you estimate your monthly repayments and the total amount you'll pay throughout your mortgage term, including interest. Use it to compare different scenarios and make informed decisions.
Key Figures
Monthly Payment
£0.00
Loan to Value (LTV)
0.0%
Total Interest
£0.00
Mortgage Summary
Monthly Payment
£0.00
Total Interest
£0.00
Total Fees
£0.00
Total Cost
£0.00
Loan to Value (LTV)
0.0%
Frequently Asked Questions
Buying a house is the biggest purchase most of us make and one of the most important decisions we'll make, so there's a lot to consider. You probably have quite a few questions ranging from how much you can borrow to how you can save money when buying a house.
Click on any of our questions to jump directly to the answer:
- • How accurate is your mortgage calculator?
- • What factors can affect my monthly repayments?
- • How can I reduce my monthly repayments?
- • How can I save money on my mortgage?
- • What are mortgage overpayments?
- • How are interest rates calculated?
How accurate is your mortgage calculator?
Our mortgage calculator is designed to give you an estimate of your monthly repayments and the total cost of the house. However, the figures may vary depending on your circumstances, such as your credit score and other financial factors.
To create these results, we have had to make a few assumptions:
- Interest is charged monthly.
- The interest rate stays the same over the term.
- If you selected 'Interest only', we assume your standard monthly payment stays the same even if you pay off some of the balance.
What factors can affect my monthly repayments?
From the type of mortgage, you get to the deposit you put down on the house, there are a variety of factors that influence your monthly repayments, including:
Mortgage type
There are a range of mortgage product types to choose from. The type of mortgage you go with is an important decision because the type of mortgage will influence the interest rate and your monthly repayments. Here's a quick overview of the different types of mortgages and what you should know about each before determining which is best for you.
| Type of mortgage | Description | Who is this type of mortgage for? |
|---|---|---|
| Fixed-rate mortgage | You'll pay the same interest rate and monthly repayment for a set number of years (usually two or five years) regardless of what happens to the Bank of England base rate. | Fixed-rate mortgages are ideal for those who want stable monthly repayments so that they can budget or for borrowers who want to lock in a good rate before interest rates rise. |
| Tracker mortgages | Your monthly repayments could go up or down, depending on the Bank of England's base rate; plus a few percentage points set by your lender. | A tracker mortgage is most suited for people who are confident that the base rate is set to fall but can comfortably pay more if the rate increases. |
| Discount | Discount mortgages are a type of variable rate mortgage where the interest rate is set at a discount below the lender's standard variable rate (SVR) for a fixed period of time. This means that your monthly repayments will be lower than if you had a standard variable rate mortgage, but the discount can change at any time. | Discount mortgages can be a good option for borrowers who want lower monthly repayments for a fixed period, but who are also comfortable with the possibility of their interest rate increasing in the future. |
The best type of mortgage for you will depend on your circumstances and financial goals. For example, what you can afford to pay each month will, in part, influences the type of mortgage you may want to go for. For example, if you can afford higher monthly repayments, a repayment mortgage may be a better option, allowing you to own your home outright at the end of the mortgage term. If you are on a tight budget, an interest-only mortgage may be a better option for you in the short term, but you will need to plan how to repay the capital at the end of the mortgage.
It is vital to do some homework and understand all your options or speak to a qualified financial advisor before choosing a mortgage to ensure you get the best deal for your needs.
Loan Amount
The loan amount is one of the most important factors that affect your monthly mortgage repayment. The higher the loan amount, the higher your monthly repayment will be.
For example, if you borrow £200,000 at an interest rate of 5% over a 25-year term, your monthly repayment will be £1,030. If you borrow £300,000 at the same interest rate and duration, your monthly repayment will be £1,545.
💡 Tip: It is essential to consider your budget and affordability carefully before choosing a loan amount. Use our calculator above to estimate your monthly repayments.
Interest Rate
The higher the interest rate, the higher your monthly repayment will be. The lower the interest rate on your mortgage, the lower your monthly repayment will be. You can shop around to compare interest rates from different lenders.
Using a mortgage broker can help you reduce the interest rate you get for your mortgage or re-mortgage in a few ways:
- Access to various products: Mortgage brokers can access a broader range of lenders than you would if you apply for a mortgage on your own and compare rates from multiple lenders to find the best deal.
- Negotiate interest rate on your behalf: Mortgage brokers have negotiation skills to help you get a better interest rate. They know how to talk to lenders and get them to compete for your business.
- Broker-only exclusive offers: Some lenders offer broker-only exclusives, mortgages only available through mortgage brokers. These mortgages often have lower interest rates and fees than mortgages open to the public.
- Mortgage to meet your needs: Mortgage brokers can help you find a mortgage tailored to your needs. They can consider your income, credit history, and other factors to find a mortgage you are likely to be approved for and can afford.
Term Length
The longer the loan term, the lower your monthly repayment will be. However, you will pay more interest in total over the life of the loan. If you want to save money on your mortgage in the long term, then a shorter mortgage is something to consider because paying back the loan more quickly reduces the overall interest paid. However, this will also mean higher monthly repayments.
Credit Score
Your credit score could affect your interest rate as lenders use your credit report to assess your likelihood of defaulting on mortgage repayments. If you have a bad credit score because you've missed payments or filed for bankruptcy, you will likely get a higher interest rate and may be required to put down a higher deposit.
Mortgage Deposit
The size of your mortgage deposit will also affect the size of repayments and the types of mortgage you can get. A larger deposit will mean less risk for the lender, and as the overall loan will be smaller, this may lead to a preferential rate.
How can I reduce my monthly repayments?
There are a few things you can do to reduce your monthly repayments:
- Make a larger down payment.
- Choose a longer-term length.
- Get a lower interest rate.
How can I save money on my mortgage?
There are a few things you can do to save money on your mortgage:
- Make extra mortgage payments.
- Refinancing your mortgage to a lower interest rate.
- Pay off your debt to improve your credit score.
What are mortgage overpayments?
A mortgage overpayment is any money you pay towards your mortgage that is more than your required monthly repayment. You can make overpayments whenever you like, and they can be either one-off lump sums or regular overpayments.
There are many benefits to making mortgage overpayments, some of which include:
- Save money on interest in the long run - The more money you overpay, the smaller your mortgage balance will be so that you will pay less interest on your mortgage over the life of the loan.
- Pay off your mortgage sooner - Overpayments are a way to reduce the length of your mortgage term so that you can own your home outright sooner.
- Overpayments can improve your credit score - Overpayments demonstrate to lenders that you are a responsible borrower capable of managing their finances effectively.
How to make mortgage overpayments
There are two main ways to make mortgage overpayments - One-off lump sum overpayments and regular overpayments.
| One-off lump sum overpayments | Regular overpayments |
|---|---|
| At any time, you can make a one-off lump sum overpayment. People often do this after receiving a bonus from work, selling an asset or receiving an inheritance. | Alternatively, you could make regular overpayment every month by increasing your monthly repayment by a set amount. |
Things to consider before making mortgage overpayments
Before you make any mortgage overpayments, it is essential to consider the following:
- Your financial situation: Make sure you can afford overpayments without financial difficulty.
- Your mortgage terms: Some mortgage deals limit how much you can overpay yearly. Check your mortgage terms to see if there are any restrictions on overpayments. Often, lenders give you a specific percentage you can overpay but if you exceed this, you risk paying additional fees (typically between 1% and 5%).
- Your financial goals: Consider what you want to achieve by making mortgage overpayments - save money on interest, pay off your mortgage sooner, or improve your credit score.
How to get the most out of mortgage overpayments?
If you want to get the most out of mortgage overpayments, it is worth trying to make them as early as possible in the life of your mortgage. This is because the interest on your mortgage is calculated on the outstanding balance, so the sooner you start overpaying, the more interest you will save.
| Overpayment per month | Mortgage term reduction | Total interest saved* |
|---|---|---|
| £10 | 6 months | £2,890 |
| £50 | 2 years, 6 months | £13,020 |
| £100 | 4 years, 6 months | £23,200 |
| £200 | 7 years, 7 months | £38,200 |
| £500 | 12 years, 10 months | £62,790 |
| £1000 | 16 years, 10 months | £80,340 |
*Based on a £150k mortgage with a 25-year term and 5% interest rate
How are interest rates calculated?
Lenders calculate interest rates for mortgages based on several factors, including:
- The Bank of England base rate - The interest rate at which banks lend to each other overnight. The Bank of England sets it and is typically the lowest interest rate in the UK economy.
- Your credit score - A measure of your creditworthiness based on your credit history. Lenders will use your credit score to assess your mortgage default risk.
- The loan-to-value (LTV) ratio - The percentage of the purchase price you are borrowing. For example, if you buy a house for £100,000 and borrow £80,000, your LTV ratio would be 80%. Lenders will typically charge higher interest rates for higher LTV ratios.
- Type of mortgage - Many different types of mortgages are available in the UK, including fixed-rate mortgages, variable-rate mortgages, and discount mortgages. The type of mortgage you choose will also affect the interest rate you are offered.
❓ Frequently Asked Questions
How much can I borrow for a mortgage in the UK?
UK lenders typically offer mortgages of 4-4.5 times your annual gross salary, though some may lend up to 5-6 times in certain circumstances. For example, on a £40,000 salary, you could borrow £160,000-£180,000. Joint applications combine both incomes. Lenders also assess affordability based on your outgoings, debts, and living costs. Higher deposits improve borrowing capacity - with a 15% deposit, you'll access better rates and larger loans than with 5%.
Should I get a fixed-rate or variable-rate mortgage?
Fixed-rate mortgages lock your interest rate for 2, 3, 5, or 10 years, providing payment certainty and protection against rate rises. Variable-rate mortgages (tracker, standard variable, or discount) can go up or down with the Bank of England base rate. Fixed rates are popular when rates are low or rising, as they provide security. Variable rates might be cheaper initially but carry risk. Consider your affordability, risk tolerance, and how long you plan to stay in the property when choosing.
What is loan-to-value (LTV) and why does it matter?
LTV is the percentage of the property value you're borrowing. A £180,000 mortgage on a £200,000 property is 90% LTV. Lower LTVs get better interest rates - you might pay 4.5% at 90% LTV but only 3.8% at 75% LTV. This is because lower LTVs mean less risk for lenders. Improving your LTV by just 5% (from 85% to 80% for example) can significantly reduce your interest rate and monthly payments. Aim for LTV thresholds: 95%, 90%, 85%, 80%, 75%, 60%.
Should I overpay my mortgage and how much should I overpay?
Overpaying can save thousands in interest and clear your mortgage years earlier. Most lenders allow 10% annual overpayments without penalties. On a £200,000 mortgage at 4% over 25 years, overpaying just £200/month saves £43,000 interest and repays 7 years earlier. However, consider: 1) Emergency fund first (3-6 months expenses), 2) Higher interest debts first, 3) Pension contributions (tax relief + employer match), 4) Your mortgage rate vs. investment returns. Overpaying makes most sense on higher-rate mortgages above 4%.
What mortgage fees should I expect to pay?
Expect to pay: arrangement/product fees (£0-£2,000), valuation fees (£250-£1,500), legal fees (£850-£1,500), survey fees (£300-£1,500 depending on type), broker fees (£0-£500 or 1% of loan), and stamp duty (varies by property value and location). First-time buyers pay no stamp duty on properties up to £425,000. Total fees typically range from £2,500-£7,000. Some lenders offer 'free' valuations or legal fees but charge higher interest rates - compare the total cost over the deal period.
What is the difference between repayment and interest-only mortgages?
Repayment mortgages: monthly payments cover both interest and principal. You gradually own more of your home and fully own it at term end. Interest-only mortgages: payments only cover interest, principal stays the same. Much lower monthly payments but you need a separate plan to repay the loan (investments, savings, downsizing). Most lenders now require large deposits (typically 25%+) and proof of repayment strategy for interest-only. Repayment mortgages are generally recommended for residential properties.
How does remortgaging work and when should I do it?
Remortgaging means switching to a new mortgage deal, either with your current lender or a new one. You should remortgage when: 1) Your fixed-rate deal ends (you'll move to the expensive SVR otherwise), 2) You can get a significantly better rate (usually 0.5%+ improvement), 3) Your property value has increased (improving your LTV), 4) You need to borrow more (for home improvements). Start looking 3-6 months before your current deal ends. Watch out for early repayment charges on your current mortgage.
What credit score do I need for a mortgage?
There's no specific credit score requirement - lenders assess your full credit file, not just your score. However, scores above 700 (Experian) or 800 (Equifax) typically access the best rates. Lenders check: payment history, outstanding debts, credit utilization, length of credit history, and recent credit applications. To improve chances: pay bills on time for 6+ months, reduce credit card balances below 25% of limits, fix credit report errors, avoid making multiple credit applications, and register on the electoral roll.
Can I get a mortgage with a small deposit?
Yes, but options are limited. Government schemes help: the Mortgage Guarantee Scheme supports 95% LTV mortgages (5% deposit) for properties up to £600,000. First-time buyers might use the Lifetime ISA (25% government bonus on savings up to £4,000/year towards a first home under £450,000). However, higher LTV mortgages charge significantly higher interest rates. A 95% LTV mortgage might be 5.5% vs. 3.8% at 75% LTV. Save for a larger deposit if possible - even reaching 90% or 85% LTV dramatically improves rates and reduces lifetime costs.
How does stamp duty work on property purchases?
Stamp Duty Land Tax (SDLT) is paid on property purchases in England and Northern Ireland. Rates for 2025/26: First-time buyers pay nothing on the first £425,000 (then 5% up to £625,000). Other buyers pay: 0% up to £250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5m, 12% above £1.5m. Additional properties (buy-to-let, second homes) pay an extra 3% on each band. Scotland and Wales have different systems (LBTT and LTT). Use a stamp duty calculator for your exact amount.