Mortgage Calculator UK (2025/26)

Calculate your monthly mortgage repayments, total interest, and affordability for any UK property. Adjust the property price, deposit, interest rate, and term to see how each factor affects your payments.

Calculate Your Mortgage

Property Price

Deposit(£30,000 / 10%)

Interest Rate (% per year)

Mortgage Term

Monthly Repayment

£1,500.75

Repayment mortgage

Interest-Only

£1,012.50

per month

Total Cost

£450,224

over 25 years

Total Interest

£180,224

Loan Amount

£270,000

Loan-to-Value (LTV)

90%

Income Needed (~4.5x)

£60,000

household gross annual

Amortisation Summary

How your mortgage balance reduces over time

Year	Remaining Balance	Total Paid	Interest Paid	Capital Paid
Year 1	£264,019	£18,009	£12,028	£5,981
Year 5	£237,216	£90,045	£57,261	£32,784
Year 10	£196,178	£180,090	£106,268	£73,822
Year 15	£144,806	£270,135	£144,941	£125,194
Year 20	£80,499	£360,179	£170,679	£189,501
Year 25	£0	£450,224	£180,224	£270,000

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How Mortgages Work

Deposit + borrowing

You put down a deposit (typically 5% to 25% of the price) and borrow the rest from a lender. The less you borrow relative to the property value (lower LTV), the better rates you can access.

Interest + repayments

You pay interest on the outstanding balance each month. With a repayment mortgage, you also pay off a portion of the capital. Over time, more of your payment goes to capital and less to interest.

Term + total cost

A longer term means lower monthly payments but more total interest. A 25-year term is standard, but many buyers now choose 30 or 35 years to keep monthly costs manageable.

Understanding UK Mortgages

A mortgage is a loan secured against a property. If you cannot keep up repayments, the lender can repossess the property to recover their money. Most UK homebuyers need a mortgage because few people have enough savings to buy a property outright.

The two main types are repayment mortgages, where your monthly payment covers both interest and capital so the loan is fully repaid by the end of the term; and interest-only mortgages, where you only pay the interest each month and need a separate plan to repay the capital at the end. Repayment is the most common type for residential buyers, while interest-only is more common for buy-to-let investors.

Lenders typically offer fixed-rate deals (locked in for 2, 3, 5, or 10 years), tracker rates (which follow the Bank of England base rate plus a set margin), and standard variable rates (the lender's default rate, usually the most expensive). Most buyers choose a fixed rate for certainty, then remortgage when the fix ends.

Your borrowing capacity depends on your income, existing debts, credit score, and the size of your deposit. As a rough guide, most lenders will offer 4 to 4.5 times your gross annual household income. A larger deposit (lower LTV) unlocks better rates and can save you thousands over the term.

Frequently Asked Questions

How is the monthly mortgage repayment calculated?

We use the standard annuity formula: M = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate divided by 12 then by 100), and n is the total number of monthly payments. This gives you the fixed monthly payment that covers both interest and capital over the chosen term.

What is the difference between repayment and interest-only mortgages?

With a repayment mortgage, each monthly payment covers both interest and a portion of the capital. By the end of the term, the loan is fully repaid. With an interest-only mortgage, you only pay the interest each month, so the original loan balance remains at the end. You need a separate plan (savings, investments, or selling the property) to repay the capital.

How much can I borrow for a mortgage?

Most UK lenders use an income multiple of 4 to 4.5 times your gross annual household income. Some lenders may stretch to 5 or even 5.5 times for high earners or certain professions. Our calculator uses 4.5x as a standard benchmark. Your actual borrowing limit will also depend on your credit score, existing debts, and the lender's affordability assessment.

What deposit do I need to buy a house?

The minimum deposit is typically 5% of the property price, though some lenders require 10% or more. A larger deposit (15% to 25%) will give you access to lower interest rates and better deals. The loan-to-value (LTV) ratio, which is the percentage of the property price you are borrowing, is a key factor in the rates you are offered.

What is the current average mortgage rate in the UK?

As of early 2026, typical fixed-rate mortgage rates range from around 3.8% to 5.5% depending on the term, LTV, and product type. Two-year fixes tend to be slightly cheaper than five-year fixes. Tracker and variable rate mortgages are linked to the Bank of England base rate. Our calculator defaults to 4.5%, which represents a mid-range fixed rate. You should check current rates with a broker for the most accurate picture.

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