Monthly UK Mortgage Calculator

A budget-first approach starts with the monthly payment you can comfortably afford and works backwards to show how much you could borrow. Use the Budget-first mode on this calculator: enter your target monthly payment, interest rate, and term to see the maximum loan size. This approach helps you avoid overextending — you focus on what fits your monthly budget rather than the maximum a lender might offer. For a more complete picture, also check the stress test to see how a rate rise would affect your payments.

The FCA requires lenders to stress test your mortgage by checking you could still afford repayments if interest rates rose — typically by 3 percentage points. For example, if you take out a mortgage at 4.5%, the lender checks you could also afford it at 7.5%. The Budget-first mode on this calculator includes an adjustable stress test so you can see how different rate rises affect your borrowing power before you apply.

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%.

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.

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%.

The repayment formula is M = P x r(1+r)ⁿ / ((1+r)ⁿ - 1), where P is the loan amount, r is the annual rate divided by 12, and n is the term in months. A £200,000 mortgage at 4.5% over 25 years works out at roughly £1,112 per month. As a shortcut, every 1% change in rate moves a £200,000, 25-year mortgage by about £100 per month, and a £300,000 mortgage by about £150 per month. This calculator applies the same formula and breaks down principal, interest, and fees month by month.

A remortgage LTV calculator works out your current loan-to-value — your outstanding balance divided by your property's current value — so you can see which rate band you'll be in when your current deal ends. For example, if you owe £160,000 on a property now worth £220,000, you're at 73% LTV and qualify for the cheaper sub-75% remortgage rates. A house-price rise while you've been repaying can easily drop you a band (e.g. 85% → 75%), which is worth checking 3-6 months before your fix ends. Enter your balance and valuation here to see your LTV and the monthly cost at typical remortgage rates.

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%.

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.

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.

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.

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.

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.

If you're on a fixed-rate mortgage, your monthly payments stay the same until the fixed period ends — rate changes have no immediate effect. If you're on a tracker or variable rate, payments move directly with the Bank of England base rate. On a £200,000 mortgage over 25 years, every 1% rise in rate adds roughly £100/month to repayments. Use the Compare Rate toggle above to instantly see how any alternative rate would change your monthly payment, total interest, and overall cost — without changing your loan amount or term.

More than most people expect. On a £200,000 repayment mortgage over 25 years, the difference between 4.0% and 4.5% is around £52/month — that's £624/year and roughly £15,600 over the full term. On a £350,000 mortgage the same 0.5% difference costs around £91/month extra. The larger your loan or the longer your term, the more every fraction of a percent matters. Toggle the Compare Rate feature on this calculator to see the exact figures for your specific mortgage.

To properly compare two rates you need to look at three things: the monthly payment difference, the total interest paid over the full term, and any associated fees. A lower rate with a large arrangement fee can sometimes cost more over a 2-year fix than a slightly higher rate with no fee. Use the Compare Rate feature on this calculator — enter your second rate and immediately see the monthly and total cost difference side by side, using the same loan amount, term, and mortgage type.

It depends on the saving versus the cost of switching. Typical switching costs include early repayment charges (1-5% of outstanding balance on fixed-rate deals), arrangement fees on the new deal (£0-£2,000), valuation and legal fees (£500-£1,500). If the total saving from a lower rate over the new deal period exceeds those costs, remortgaging is worthwhile. As a rough rule, a 0.5% rate reduction on a £200,000 mortgage saves around £7,800 over 5 years — usually well above switching costs. Use the Compare Rate toggle to calculate the total interest saving, then weigh it against your exit and entry fees.

A 2-year fix gives you a lower rate right now and flexibility to remortgage sooner — ideal if you think rates will fall or your LTV will improve significantly in the short term. The downside is you'll pay arrangement fees again in 2 years and face uncertainty sooner. A 5-year fix locks in payment certainty for longer and spreads arrangement fees over more years, but rates are slightly higher (typically 0.2-0.4% above 2-year fixes). If stability and predictable budgeting matter most, go 5-year. If you expect your circumstances to change — remortgaging after renovations, a salary jump, or crossing an LTV band — a 2-year fix gives you faster access to better rates. Use the Compare Rate feature here with 2 yr and 5 yr horizons to see the exact cost difference for your mortgage.

In 2026, the average 2-year fixed rate in the UK sits around 4.0-4.5% and 5-year fixes around 3.8-4.2%, though rates vary significantly by loan-to-value (LTV). Borrowers with a 40% deposit (60% LTV) can access rates around 3.5-3.8%, while those with a 10% deposit (90% LTV) typically pay 4.5-5.2%. Rate comparison sites like MoneySuperMarket, Moneyfacts, and brokers like Habito or Trussle can find live personalised rates. Enter any rate you're quoted into the Compare Rate feature above to see what it means for your specific monthly payments and total cost.

The interest rate is the single biggest driver of how much your mortgage costs in total. On a £250,000 repayment mortgage over 25 years: at 3% you'd pay around £59,000 in total interest; at 4% around £79,000; at 5% around £101,000; at 6% around £125,000. Each 1% increase adds roughly £20,000-£26,000 to the total cost on a mortgage of this size, spread across 25 years. Use the Compare Rate feature on this page to calculate the precise impact on your own numbers.

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). Calculate your exact amount: https://www.gov.uk/stamp-duty-land-tax

At 4.5% over 25 years (repayment), a £70,000 mortgage is ~£389/month; over 20 years ~£443; over 30 years ~£355. At 3.5%, the same £70k over 25 years drops to ~£350/month. Enter £70,000 as the loan (property minus deposit) above and toggle rate/term to see your exact figure — each 0.5% move shifts it ~£18/month.

A £40,000 repayment mortgage at 4.5% over 25 years is ~£222/month; over 20 years ~£253; over 30 years ~£203. On interest-only at 4.5% it is £150/month (interest only, capital remains). Set the loan to £40,000 above, pick repayment vs interest-only, and use Compare Rate to test another quote.

At 4-4.5x income, £35,000 salary typically borrows £140,000-£157,500 (single). Joint £35k+£35k = £70k combined borrows £280k-£315k. The lender's stress test and existing debts (loans, car finance, childcare) can trim 10-20%. Check the mortgage borrowing calculator with your exact debts and deposit to confirm.

At 4.5% over 25 years (repayment), £200,000 is ~£1,112/month; at 4.0% ~£1,056; at 5.5% ~£1,229. Over 30 years it falls to ~£1,014 at 4.5% but adds £42k more interest overall. Use the Compare Rate toggle to test your quoted rate side by side.

At 4.5% over 25 years (repayment), £90,000 is ~£500/month; at 3.5% ~£451; over 30 years at 4.5% ~£456. Interest-only would be £338/month at 4.5% (capital remains). Enter £90,000 as the debt above to compare repayment vs interest-only instantly.