Free Calculator
Mortgage Calculator
Calculate your monthly mortgage payments, total interest costs, and compare repayment versus interest-only options. Adjust property price, deposit, rate, and term.
Monthly Payment
£1,151.41
Loan Amount
£187,500
LTV Ratio
75%
Total Interest
£157,924
Total Cost
£345,424
Payment Breakdown
Disclaimer: This calculator provides estimates for illustrative purposes only. Results are based on simplified assumptions and should not be relied upon for financial decisions. Actual costs, returns, and outcomes will vary. Always consult a qualified professional before making property or financial decisions.
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How the Mortgage Calculator Works
Our mortgage calculator uses the standard UK mortgage amortisation formula to provide accurate monthly payment estimates. For repayment mortgages, we calculate using the formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the principal, r is the monthly interest rate, and n is the total number of payments.
Repayment vs Interest-Only
Repayment mortgages pay off both the interest and the capital over the term. At the end of your mortgage, you own the property outright. Monthly payments are higher but you build equity every month.
Interest-only mortgages only pay the interest each month. The original loan amount remains unchanged and must be repaid at the end of the term. Popular with buy-to-let investors as monthly costs are lower, maximising cash flow.
Understanding LTV
Loan-to-Value (LTV) is the percentage of the property price that you borrow. A lower LTV typically means better interest rates. Most residential lenders offer their best rates at 60% LTV, while buy-to-let mortgages commonly require a minimum 25% deposit (75% LTV).
Current UK Mortgage Rates
UK mortgage rates vary based on the Bank of England base rate, your LTV, credit score, and whether you choose a fixed or variable rate. As of 2024-2025, typical fixed rates range from 4% to 6% depending on term length and LTV. Always compare rates from multiple lenders or use a whole-of-market mortgage broker.