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Property calculator

UK Mortgage Calculator

Estimate monthly mortgage repayments, total interest and loan-to-value for a repayment or interest-only mortgage. This is an estimate for general guidance, not a mortgage offer, affordability assessment or lending decision.

Property and deposit

The price of the property you are modelling.
Cannot exceed the property price. Your mortgage amount is the property price minus your deposit.

Mortgage details

The rate you want to model, not a live or guaranteed lender rate.
Whole years, from 1 to 40.

Assumes the interest rate you enter stays the same for the whole term, with no fees, overpayments, payment holidays or rate changes. Does not include arrangement fees, valuation fees, legal fees, Stamp Duty or insurance.

Your mortgage at a glance

FigureValue
Deposit percentage10%
Annual interest rate4.5%
Mortgage term25 years
For comparison, at the same figures a interest-only mortgage would have an estimated monthly payment of £1,012.50. This is shown for reference only; the calculation above uses the repayment type you selected.

Where your mortgage payments go

Over the modelled term, your total repayment is made up of the original amount borrowed (capital) and the interest charged on it.

  • Capital
  • Interest
Where your mortgage payments go
ComponentAmount
Capital (amount borrowed)£270,000.00
Interest£180,224.31
By the end of the modelled term, outstanding capital is estimated at £0.00, subject to normal rounding.

How the Mortgage Calculator works

Enter the property price, deposit, interest rate and term, and choose repayment or interest-only. The calculator works out your mortgage amount and estimates the monthly payment using the standard capital-and-interest amortisation formula, or a straightforward interest calculation for interest-only.

This is an estimate for general guidance. It is not a mortgage offer, an affordability assessment or a lending decision, and it does not tell you how much a lender will lend you.

Repayment mortgages

With a repayment mortgage, each monthly payment covers both interest and a portion of the capital you borrowed. Assuming the interest rate and payments stay as modelled, the mortgage is fully repaid by the end of the term.

Interest-only mortgages

With an interest-only mortgage, monthly payments cover only the interest charged on the amount borrowed. The capital is not reduced during the term and remains fully outstanding at the end, so a separate plan is needed to repay it.

Lower monthly payments with interest-only do not make it inherently better than a repayment mortgage; the two involve different overall costs and repayment obligations. This calculator does not recommend one over the other.

How mortgage interest affects repayments

Higher interest rates increase both the monthly payment and the total interest cost. Lower rates reduce them, all else being equal. This calculator assumes the interest rate you enter stays the same for the whole term; in reality, fixed-rate deals may end before the mortgage term does, and variable or tracker rates can change.

Current Bank of England Bank Rate

Bank of England Bank Rate
Current rate
3.75%
Effective from
18 December 2025

The Bank of England Bank Rate influences borrowing costs across the economy, but it is not a mortgage rate. Mortgage rates are set by individual lenders and vary by product, loan-to-value, term and borrower circumstances.

How mortgage term affects repayments

A longer mortgage term generally reduces the monthly repayment for the same mortgage amount and interest rate, but normally increases the total interest paid over the life of the mortgage. A shorter term generally increases monthly repayments but reduces the period over which interest accrues.

What loan-to-value means

Loan-to-value (LTV) compares your mortgage amount with the property's value, expressed as a percentage. For this calculation, your mortgage of £270,000.00 against a property price of £300,000.00 gives an LTV of 90%. This figure does not determine which mortgages you qualify for; lenders set their own LTV criteria.

Capital versus interest

Capital is the amount you originally borrowed. Interest is the cost charged by the lender for borrowing it. With a repayment mortgage, each payment gradually shifts from mostly interest towards mostly capital as the outstanding balance falls. With interest-only, every payment is interest, and the capital is repaid separately at the end.

What this calculator does not include

  • Arrangement, product, valuation or broker fees
  • Legal and conveyancing fees
  • Stamp Duty (or the Scottish/Welsh equivalents)
  • Buildings or life insurance
  • Early repayment charges
  • Moving costs
This calculator does not assess affordability or lending eligibility, and it does not tell you how much a lender will lend you. Mortgage affordability depends on your income, expenditure, debts, credit circumstances and individual lender criteria.

Worked mortgage examples

ExampleMortgageRateTermTypeMonthly paymentTotal interest
£250,000 property, £25,000 deposit£225,000.004.5%25 yearsRepayment£1,250.62£150,186.92
£350,000 property, £70,000 deposit£280,000.004%30 yearsRepayment£1,336.76£201,234.62
£300,000 property, £30,000 deposit£270,000.005%25 yearsInterest-only£1,125.00£337,500.00

Mortgage repayments by amount

See estimated monthly repayments for one of these common mortgage amounts, using the same illustrative rate and term as above.

Questions

Frequently asked questions

How are mortgage repayments calculated?
Repayment mortgages use the standard capital-and-interest amortisation formula, which spreads a fixed monthly payment across the term so the mortgage is repaid by the end, assuming the rate stays the same. Interest-only mortgages charge interest on the full amount borrowed each month, with the capital repaid separately.
How much would a £200,000 mortgage cost per month?
It depends on the deposit, interest rate, term and repayment type. Enter your own figures above for an estimate.
What is a repayment mortgage?
A mortgage where each monthly payment covers interest and a portion of the capital, so the mortgage is fully repaid by the end of the term.
What is an interest-only mortgage?
A mortgage where monthly payments cover only the interest. The capital borrowed remains outstanding at the end of the term and must be repaid separately.
What does loan-to-value mean?
Loan-to-value (LTV) is your mortgage amount as a percentage of the property price. A larger deposit produces a lower LTV.
Does a larger deposit reduce mortgage repayments?
Yes. A larger deposit reduces the mortgage amount you need to borrow, which reduces both the monthly payment and the total interest, all else being equal.
Does a longer mortgage term reduce monthly payments?
Generally yes, for the same mortgage amount and interest rate. A longer term spreads the same borrowing over more payments, each smaller.
Why does a longer mortgage term increase total interest?
Interest is charged on the outstanding balance for longer, so even though each payment is smaller, more interest accrues in total over a longer term.
Does this calculator include mortgage fees?
No. It does not include arrangement, valuation, legal or broker fees, Stamp Duty, insurance or early repayment charges.
Does this calculator tell me how much I can borrow?
No. This calculator estimates repayments from the figures you enter. It does not assess affordability or lending eligibility, which depend on your income, expenditure, debts, credit circumstances and individual lender criteria.
What happens if mortgage interest rates change?
This calculator assumes the interest rate you enter stays the same for the whole term. In reality, fixed-rate deals may end before the mortgage term does, and variable or tracker rates can change, which would change your actual repayments.

Last reviewed

Reviewed
Version 1.0.0

This calculator provides an estimate for general guidance only. It is not a mortgage offer, an affordability assessment, financial advice or a lending decision, and it does not tell you how much a lender will lend you. It does not include fees, Stamp Duty, insurance or early repayment charges. Check MoneyHelper guidance or seek professional advice if you are unsure.