Your mortgage details
Your monthly repayment
This calculator assumes a repayment (capital & interest) mortgage at a fixed interest rate for the full term. In reality, rates often change when fixed-rate deals end. It excludes fees, insurance, and other costs. This is for illustration only and does not constitute financial advice.
Explanation
How does a mortgage calculator work?
This calculator estimates the monthly payments on a repayment mortgage.
It takes the amount you need to borrow e.g. the property price minus your deposit and spreads it over your chosen term, adding interest at the rate you enter.
Each monthly payment covers both a slice of the original loan and the interest charged that month, so by the end of the term the debt is fully cleared.
Understanding loan-to-value (LTV)
Loan-to-value is the size of your mortgage as a percentage of the property’s value.
For example, a £240,000 mortgage on a £300,000 home is an 80% LTV.
This figure matters because lenders offer their best interest rates to buyers with lower LTVs.
Rates typically improve at key thresholds, often 90%, 85%, 75% and 60%.
So increasing your deposit just enough to drop into a lower band can noticeably reduce the rate you’re offered.
Repayment vs interest-only
This calculator assumes a repayment mortgage, which is by far the most common type in the UK.
With a repayment mortgage you gradually pay off both the loan and the interest, so you own your home outright at the end.
With an interest-only mortgage you pay just the interest each month and repay the full loan as a lump sum at the end, these are now mainly used for buy-to-let and have far stricter lending criteria.
What this calculator doesn’t include
To keep things simple, the calculator assumes your interest rate stays the same for the whole term.
In practice most UK mortgages start on a fixed or discounted rate for two to five years, then move onto the lender’s standard variable rate, which is usually higher.
It also excludes arrangement fees, valuation fees, stamp duty, buildings insurance and other costs, so treat the figures as a guide rather than an exact quote.
Getting mortgage advice
The amount you can actually borrow depends on your income, outgoings, credit history and the lender’s own criteria.
A mortgage broker or adviser can search the market for you, explain the true cost of different deals including fees, and help you find the most suitable option for your circumstances.
Important: This calculator is for illustration only and does not constitute financial advice. Always confirm figures with a qualified mortgage adviser or lender before making any decisions.