Mortgage Calculator

How Mortgage Repayments Are Calculated

A mortgage repayment is calculated using the loan amount, interest rate and mortgage term. The monthly payment includes both capital repayment and interest charged by the lender.

Use this mortgage calculator to estimate monthly repayments, total interest paid and the overall cost of borrowing before applying for a mortgage.

Mortgage Calculator Example

For example, a £300,000 property purchase with a £50,000 deposit creates a mortgage loan of £250,000. With a 4.5% interest rate over 25 years, the monthly repayment can be estimated instantly using the calculator above.

What Affects Your Mortgage Payment?

• Property purchase price
• Deposit amount
• Mortgage interest rate
• Length of mortgage term
• Type of mortgage product

Ways to Reduce Mortgage Costs

Increasing your deposit can reduce the loan amount and may qualify you for better interest rates. Choosing a shorter term can reduce total interest paid, although monthly repayments will usually be higher.

Frequently Asked Questions

How accurate is this mortgage calculator?

This calculator provides estimates based on the information entered. Actual mortgage offers may vary between lenders.

Does the calculator include fees?

No. Mortgage arrangement fees, valuation fees and legal costs are not included unless explicitly stated.

Can I use this calculator for buy-to-let mortgages?

The calculator can provide an estimate, but buy-to-let lending often uses different affordability criteria.