How to Use the UK Mortgage Repayment Calculator
Our free mortgage repayment calculator gives you instant results for any UK mortgage scenario. Enter the property price, your deposit, the interest rate your lender has offered, and the mortgage term — then select whether it's a repayment or interest-only mortgage. Results update instantly as you type.
The calculator shows your monthly repayment, the total amount you'll repay over the full term, how much of that is interest, and your Loan-to-Value (LTV) ratio. This helps you compare different scenarios — for example, see how much you save by increasing your deposit by £10,000, or what the payment difference is between a 25-year and 30-year term.
💡 2026 rate context: The Bank of England base rate is 3.75% (April 2026). Most lenders price fixed rates 0.5–1.5% above base, meaning typical 2-year fixed deals are around 4.2–5%. Use 4.5% as a realistic mid-range figure for planning.
UK Mortgage Types Explained
Understanding the different types of mortgages available in the UK is essential before you calculate repayments. The type of mortgage you choose affects both your monthly payment and your long-term total cost.
Repayment Mortgages (Capital and Interest)
A repayment mortgage means each monthly payment covers both the interest charge and a portion of the outstanding loan balance (capital). In the early years, most of your payment covers interest. As the balance reduces over time, an increasing proportion pays down the capital. By the end of the term, you own the property outright. This is the most common mortgage type in the UK and the safest for residential buyers.
Interest-Only Mortgages
With an interest-only mortgage, your monthly payment covers only the interest — you don't repay any capital. Monthly payments are significantly lower than a repayment mortgage, but the full original loan amount remains outstanding at the end of the term. You must have a credible repayment strategy (selling the property, ISA, pension lump sum, etc.) to repay the capital. Interest-only is common in buy-to-let mortgages and was popular for residential buyers before the 2008 financial crisis.
Fixed Rate vs Variable Rate
| Type | How It Works | Best For |
|---|
| Fixed Rate | Rate locked for 2, 3 or 5 years then reverts to SVR | Certainty, budgeting, first-time buyers |
| Tracker | Follows Bank of England base rate + a set margin | When rates are expected to fall |
| Standard Variable (SVR) | Lender sets rate, can change any time | Short-term if planning to move soon |
| Discount | Set percentage below lender's SVR | Short-term savings |
| Offset | Savings offset against loan to reduce interest | Those with significant savings |
Loan-to-Value (LTV) — Why It Matters
The Loan-to-Value ratio is the percentage of the property's value you're borrowing. It directly impacts the interest rate you're offered — the lower your LTV, the better your rate, because the lender takes on less risk.
| LTV Band | Deposit Required | Rate Tier |
|---|
| 95% LTV | 5% | Highest rates — limited lender choice |
| 90% LTV | 10% | More lenders available, better rates |
| 85% LTV | 15% | Good market access |
| 75% LTV | 25% | Strong rate tier |
| 60% LTV | 40% | Best available rates |
🏡 First-time buyer tip: If you're between LTV tiers — for example, at 91% — it may be worth saving a little longer to reach 90% LTV. The rate improvement across that 1% threshold can save thousands of pounds over the mortgage term.
UK Mortgage Affordability in 2026
UK mortgage lenders must stress-test your affordability under the Financial Conduct Authority (FCA) rules. In practice, this means:
- Maximum borrowing is typically 4–4.5× your annual gross income
- Lenders assess all outgoings: credit cards, loans, childcare, subscriptions
- They stress-test repayments at higher rates to ensure you could cope if rates rise
- Self-employed borrowers typically need 2–3 years of accounts or tax returns
- New builds and shared ownership have different rules and maximum LTVs
Mortgage Affordability Example (2026)
Single buyer, £45,000 salary:
Maximum borrowing: £45,000 × 4.5 = £202,500
With 10% deposit (£22,500): Property price up to £225,000
At 4.5% interest, 25yr term: Monthly repayment = £1,112/month
As % of take-home (approx. £2,843/mo): 39% — slightly above the 35% guideline
Government Schemes for UK Home Buyers (2026)
Several government schemes remain available to help UK buyers onto the property ladder:
- Shared Ownership — Buy a 25–75% share of a property and pay rent on the rest. Available on new builds and some resale homes.
- Lifetime ISA (LISA) — Save up to £4,000/year and receive a 25% government bonus (max £1,000/year). Can be used towards a first home worth up to £450,000.
- First Homes Scheme — New build homes offered to first-time buyers at 30–50% discount to market value in England.
- Mortgage Guarantee Scheme — Government guarantees enabling lenders to offer 95% LTV mortgages more freely.
Overpayments — How Much Can You Save?
Making regular mortgage overpayments is one of the most effective ways to reduce total interest and shorten your term. Most lenders allow up to 10% overpayment per year without an early repayment charge (ERC).
Example: £200,000 mortgage at 4.5%, 25-year term
Standard monthly payment: £1,112
Overpay by £200/month (£1,312 total):
— New term: approx. 20 years (5 years saved)
— Interest saved: approx. £24,000
Frequently Asked Questions
How much can I borrow for a mortgage in 2026? +
Most UK lenders will lend 4–4.5× your annual gross salary. On a combined income of £70,000, you could typically borrow £280,000–£315,000. Some specialist lenders offer 5× or 5.5× for professionals such as doctors, solicitors and accountants. Lenders also assess your outgoings — any existing debts, credit cards or regular commitments reduce your borrowing capacity.
What is the current average UK mortgage rate in 2026? +
With the Bank of England base rate at 3.75% (April 2026), average 2-year fixed mortgage rates are around 4.2–5% depending on LTV and lender. Five-year fixed deals typically range from 4.3–5.2%. Tracker mortgages follow the base rate plus a margin of 0.5–1.5%. Always compare rates across multiple lenders or use a whole-of-market mortgage broker.
What deposit do I need for a UK mortgage? +
The minimum deposit is 5% for most residential mortgages (95% LTV). However, 10% (90% LTV) gives access to more lenders and better rates. For the most competitive rates, aim for 25% (75% LTV) or 40% (60% LTV). First-time buyers can boost their deposit using a Lifetime ISA, which adds a 25% government bonus on savings up to £4,000/year.
How do I calculate my monthly mortgage payment? +
Use the calculator above for instant results. The formula for a repayment mortgage is: Monthly Payment = Loan × [r(1+r)ⁿ] / [(1+r)ⁿ−1], where r is the monthly interest rate (annual rate ÷ 12) and n is the total number of monthly payments. For a £240,000 loan at 4.5% over 25 years: r = 0.375%, n = 300, monthly = £1,334.
Can I get a mortgage with bad credit in the UK? +
Yes, though your options are more limited. Specialist lenders and building societies cater to applicants with county court judgments (CCJs), defaults, or missed payments. Expect higher rates and a requirement for a larger deposit (typically 15–25%). A whole-of-market mortgage broker is essential if you have adverse credit history.
What is a mortgage in principle (MIP)? +
A mortgage in principle (also called an agreement in principle or decision in principle) is a conditional statement from a lender indicating how much they're likely to lend you, based on a soft credit check. Estate agents often require one before accepting an offer. It typically lasts 60–90 days and doesn't guarantee final approval.