Mortgage Calculator (UK)
Calculate UK mortgage payments with property price, deposit, interest rate, and loan term. See monthly payments, total interest, and full yearly amortisation schedule.
About This Calculator
The Mortgage Calculator (UK) helps you estimate your monthly mortgage payments, total interest payable, and the full amortisation schedule for a residential property purchase in the United Kingdom. Whether you are a first-time buyer, moving home, or remortgaging, this tool provides a clear breakdown of how your mortgage payments are split between principal and interest over the life of the loan.
The calculator uses the standard amortisation formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where M is the monthly payment, P is the loan amount (property price minus deposit), r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments (term in years multiplied by 12). This formula ensures each monthly payment covers the interest due on the outstanding balance, with the remainder reducing the principal. Over time, the interest portion decreases and the principal portion increases — a process known as amortisation.
Results include your monthly payment, total payment over the full term, total interest cost, and an annual amortisation table showing how much principal and interest you pay each year along with the remaining balance. Interactive charts visualise the balance decreasing over time and the proportional split between principal repayment and total interest.
Regional Notes — UK
This calculator is designed for UK residential mortgages. It uses GBP (£) and follows UK conventions where mortgage terms are typically 25 years and interest rates are quoted as annual percentage rates (APR). Common mortgage types include fixed-rate (rate locked for 2–10 years), tracker (follows Bank of England base rate plus a margin), and standard variable rate (SVR). Most UK borrowers choose repayment mortgages, but interest-only options exist for certain circumstances. Lenders assess affordability based on your income, credit history, and the property value through a valuation survey.
Frequently Asked Questions
How does the Mortgage Calculator (UK) work?
Enter your property price, deposit amount, annual interest rate, and loan term in years. The calculator computes your monthly payment using the standard amortization formula, along with total interest payable and a full yearly breakdown of principal and interest. Results include interactive charts showing the balance over time and the principal vs interest split.
What interest rate should I use for my UK mortgage?
UK mortgage rates vary based on the loan-to-value ratio (LTV), mortgage type (fixed, tracker, or variable), and the lender. As of 2025-26, typical rates range from 4% to 6% for fixed-rate mortgages and 4.5% to 5.5% for tracker mortgages. Check comparison websites like MoneySuperMarket or speak to a mortgage broker for the best rate based on your deposit size and credit profile.
What is the average mortgage term in the UK?
The most common mortgage term in the UK is 25 years, though terms can range from 5 to 40 years. Shorter terms mean higher monthly payments but less total interest, while longer terms reduce monthly payments but increase total interest costs. First-time buyers often opt for 30 to 35-year terms to lower monthly outgoings.
How much deposit do I need for a UK mortgage?
Most UK lenders require a minimum deposit of 5% to 10% of the property price. A 5% deposit (95% LTV) is available through Help to Buy schemes and some high-LTV products. A 15% to 20% deposit (80-85% LTV) typically secures better interest rates. Putting down 40% or more (60% LTV) often qualifies for the lowest rates available.
What is the difference between repayment and interest-only mortgages?
With a repayment mortgage, your monthly payments cover both interest and reduce the loan principal, so the mortgage is fully paid off by the end of the term. With an interest-only mortgage, you only pay the interest each month and must repay the full principal at the end of the term through a separate investment or savings plan. Most UK borrowers choose repayment mortgages.
How does the Bank of England base rate affect my mortgage?
The Bank of England base rate influences tracker and variable rate mortgages directly. When the base rate rises, tracker mortgage rates typically increase by the same amount, raising monthly payments. Fixed-rate mortgages are unaffected during the fixed period, but renewal rates may be higher if base rates are elevated. Lenders also consider the base rate when setting SVR (Standard Variable Rate).
Do I need to pay stamp duty on a UK property purchase?
Stamp Duty Land Tax (SDLT) applies in England and Northern Ireland on property purchases over £250,000 (£425,000 for first-time buyers). Rates range from 0% to 12% depending on the purchase price. Additional 3% surcharge applies to buy-to-let and second homes. Scotland has LBTT and Wales has LTT with their own rate bands. Use a dedicated stamp duty calculator for exact figures.
Can I overpay my UK mortgage?
Most UK fixed-rate mortgages allow overpayments of up to 10% of the outstanding balance per year without penalty. Overpaying reduces the principal faster, which saves on total interest and shortens the term. Tracker and variable rate mortgages often have more flexible overpayment terms. Check your mortgage agreement for specific limits and any early repayment charges (ERC) that may apply.