UK Mortgage Calculator
- Updated
- Formula shown
- Free, no sign-up
Results
£1,500.75 a month on a £270,000 repayment mortgage over 25 years at 4.5%.
| Year | Paid | Interest | Capital repaid | Balance |
|---|---|---|---|---|
| 1 | £18,009 | £12,028 | £5,981 | £264,019 |
| 2 | £18,009 | £11,753 | £6,256 | £257,763 |
| 3 | £18,009 | £11,465 | £6,544 | £251,219 |
| 4 | £18,009 | £11,165 | £6,844 | £244,375 |
| 5 | £18,009 | £10,850 | £7,159 | £237,216 |
| 6 | £18,009 | £10,522 | £7,487 | £229,729 |
| 7 | £18,009 | £10,178 | £7,831 | £221,898 |
| 8 | £18,009 | £9,818 | £8,191 | £213,706 |
| 9 | £18,009 | £9,442 | £8,567 | £205,139 |
| 10 | £18,009 | £9,048 | £8,961 | £196,178 |
UK lenders must quote the APRC (annual percentage rate of charge). It includes fees and the rate after any deal over the full term, so compare deals by APRC and total amount repayable, not the initial rate alone.
Stamp Duty Land Tax (England and Northern Ireland), LBTT (Scotland) and LTT (Wales) are not included; check the rates on gov.uk or your devolved government.
How to use the UK mortgage calculator
- Enter the property price and your deposit. The loan-to-value (LTV) is shown with the result, because UK lenders price deals in LTV bands.
- If you are adding a product or arrangement fee to the mortgage, enter it. Otherwise leave it at £0.
- Enter the deal's interest rate and the mortgage term. 25 years is traditional, but terms of 30 to 35 years or more are now common.
- Choose repayment or interest-only. If your deal is a 2, 3, 5 or 10-year fix or tracker, pick its length and the rate you would revert to.
UK mortgage payment formulas
Interest-only: M = L × r
After the deal: M₂ = B × r₂(1 + r₂)m ÷ ((1 + r₂)m − 1)
L is the loan, r is the annual rate ÷ 12 and n is the number of months in the term. With a repayment mortgage each payment covers that month's interest and repays some capital, so the debt is cleared by the end. With interest-only you pay just the interest, and the full loan is due at the end. When an initial deal ends, the lender recalculates the payment on the balance left (B) at the new rate r₂ over the m months remaining. Some lenders calculate interest daily, so your offer may differ by a few pence.
Worked example
You buy a £300,000 home with a £30,000 deposit, so you borrow £270,000 at 90% LTV. On a repayment mortgage over 25 years at 4.5%, the payment is £1,500.75 a month. You would repay £450,224 in total, of which £180,224 is interest. On interest-only the payment drops to £1,012.50, but after 25 years you have paid £303,750 of interest and still owe the full £270,000.
If the 4.5% is a 5-year fix and the lender's standard variable rate is 7%, the payment jumps to £1,839.14 in year 6 unless you remortgage. After five years you would still owe £237,216. Stretching the term to 35 years lowers the repayment payment to £1,277.79, but adds £86,449 of interest.
Monthly payment per £100,000 borrowed
| Rate | Repayment, 25 years | Repayment, 35 years | Interest-only |
|---|---|---|---|
| 3% | £474.21 | £384.85 | £250.00 |
| 3.5% | £500.62 | £413.29 | £291.67 |
| 4% | £527.84 | £442.77 | £333.33 |
| 4.5% | £555.83 | £473.26 | £375.00 |
| 5% | £584.59 | £504.69 | £416.67 |
| 5.5% | £614.09 | £537.02 | £458.33 |
| 6% | £644.30 | £570.19 | £500.00 |
| 7% | £706.78 | £638.86 | £583.33 |
Comparing UK mortgage deals
- Look at the APRC. Lenders must show the annual percentage rate of charge. It includes fees and assumes you stay on the follow-on rate after the deal, so it lets you compare a low rate with a big fee against a higher rate with no fee. Check the "total amount payable" on the illustration too.
- Plan for the end of the deal. Most borrowers remortgage or take a product transfer before the fixed period ends to avoid the SVR. Early repayment charges usually apply if you leave during the deal.
- Adding fees costs interest. A £999 fee added to the loan is repaid over the whole term with interest, which can cost much more than paying it up front.
- Overpayments. Many deals let you overpay up to 10% of the balance a year without a charge. See the effect with the mortgage payoff calculator (it works in any currency).
- Stamp duty is extra. This calculator leaves out Stamp Duty Land Tax in England and Northern Ireland, LBTT in Scotland and LTT in Wales. Check current bands on gov.uk or with your devolved government.
Weighing up whether to buy at all? Use the rent vs buy calculator. To see how much deposit and fees you need, try the down payment calculator.
Frequently asked questions
How much is a £270,000 mortgage a month?
On a repayment basis over 25 years at 4.5%, it is £1,500.75 a month, with about £180,200 of interest over the term. Interest-only at the same rate is £1,012.50 a month, but the £270,000 is still owed at the end.
What is the difference between repayment and interest-only?
With a repayment mortgage each monthly payment covers the interest and part of the loan, so it is cleared by the end of the term. With interest-only you pay only the interest and must repay the whole loan at the end from savings, investments or a sale.
What is the APRC on a mortgage?
The annual percentage rate of charge is the total cost of the mortgage as a yearly rate. It includes fees and assumes you move to the lender’s follow-on rate after any deal and stay for the full term. UK lenders must show it, which makes deals with different fees easier to compare.
What happens when my fixed rate ends?
Unless you remortgage or switch product, you move to the lender’s standard variable rate and the payment is recalculated. On £270,000 over 25 years, going from 4.5% to 7% after five years raises the payment from £1,500.75 to about £1,839 a month.
Does this UK mortgage calculator include stamp duty?
No. Stamp Duty Land Tax (England and Northern Ireland), Land and Buildings Transaction Tax (Scotland) and Land Transaction Tax (Wales) are paid separately on completion and depend on the price and your circumstances. Check the current rates on gov.uk.