See your monthly mortgage payment, how much interest you'll pay over the term, and how a change in rates would affect you.
Worked out at https://sumlytools.com/mortgage-calculator/ — a guide only, not financial advice.
How mortgage payments are calculated
A repayment mortgage uses a standard formula so that every monthly payment is the same, but the mix changes over time. Early on, most of each payment is interest. Towards the end, most of it pays off the loan itself.
Three things set your payment: the amount you borrow, the interest rate and the term. Cutting the term from 30 to 25 years raises the monthly cost, but can save tens of thousands in interest.
Plan for rate changes
Most UK mortgages are fixed for two or five years, then move to the lender's standard variable rate unless you remortgage. The calculator shows what a one percentage point rise would cost each month, so you can check the payment stays affordable.
Other costs to budget for
Alongside your deposit, allow for stamp duty, solicitor fees, a survey, lender arrangement fees and moving costs. Use our stamp duty calculator to work out the tax.
Frequently asked questions
What is loan-to-value (LTV)?
Loan-to-value is the size of your mortgage as a percentage of the property's value. A £225,000 mortgage on a £250,000 home is 90% LTV. Lower LTVs usually get better interest rates, often at 60%, 75%, 85% and 90%.
Should I choose a shorter or longer term?
A longer term lowers your monthly payment but means you pay much more interest overall. Try both in the calculator to see the difference in total cost.
What's the difference between repayment and interest-only?
With a repayment mortgage, each payment covers interest and part of the loan, so you owe nothing at the end. With interest-only, you only pay the interest, so the full loan is still owed at the end of the term.