Work out exactly what you'd pay each month — and how much of that is interest vs. actually paying off your home.
Your Mortgage Details
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£
60% LTV (best rates)80%95% LTV (higher rates)
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yrs
Your Results
Monthly Repayment
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Loan Amount
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Total Interest
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Total Cost
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Cost breakdown—
Principal
Interest
Annual Amortisation Schedule
Year
Annual Payment
Interest Paid
Balance Remaining
Illustration only. This calculator assumes a fixed interest rate for the full term. In practice, most UK mortgages revert to the lender's Standard Variable Rate (SVR) after an initial fixed/tracker period. Figures do not include arrangement fees, valuation fees, or insurance. Always get a full mortgage illustration from a broker or lender.
Mortgage Guide
Understanding your mortgage
A mortgage is a loan secured against your property. The bank lends you the money to buy a home, and you pay it back monthly over a set term — usually 25–35 years — with interest on top.
01
Repayment vs Interest Only
With a repayment mortgage, each payment reduces your debt and pays interest. With interest only, you only pay the interest — the original loan is still owed in full at the end. Most residential buyers use repayment.
02
LTV and your interest rate
Loan-to-Value (LTV) is your mortgage as a % of the property value. Lower LTV = less risk for the lender = better rates for you. A 60% LTV mortgage typically gets the best deals; 95% LTV carries a premium.
03
Fixed vs variable rate
Fixed rates lock your payment for 2–5 years — predictable but you miss out if rates fall. Tracker rates follow the Bank of England base rate. SVR is the lender's default rate — usually higher — that kicks in after a deal ends.
04
Overpayments
Most mortgages allow 10% overpayments per year without penalty. Even small overpayments early in the term reduce your interest dramatically because you're cutting the balance that interest is charged on.
Frequently Asked Questions
How much can I borrow?
Most UK lenders offer 4–4.5× your annual income. Some specialist lenders go up to 5–6× for high earners. The exact amount depends on your income, outgoings, credit score, and the lender's affordability assessment.
What's a good mortgage rate right now?
As of 2025, 2-year fixed rates for 60% LTV are typically available from around 4–5%. Rates vary significantly by LTV, lender, and your credit profile. Use a mortgage broker to find the best current deals — they have access to products not available directly.
Should I choose a 25-year or 35-year term?
A longer term reduces your monthly payment but massively increases the total interest paid. A £300,000 mortgage at 4.5% costs ~£80k more over 35 years than over 25. Consider a longer term for affordability now, and overpay when you can to reduce the balance faster.
What fees should I budget for?
Budget for: arrangement/product fee (£0–£2,000), valuation fee (£150–£1,500), solicitor/conveyancing (£1,000–£3,000), survey (£400–£1,500), and Stamp Duty (use our SDLT calculator). First-time buyers are exempt from SDLT on properties up to £425,000.