UK Mortgage Calculator
Calculate monthly repayments, compare mortgage deals, and understand the true cost of buying a home
Last updated: August 2026
Property & Mortgage
10.0% deposit • 90.0% LTV
Affordability Estimate
Based on 4.5x income, you'd need approx:
£60,000/year
Loan to Value (LTV)
StandardBalance Over Time
Annual Payments
Upfront Costs
+ solicitor fees (~£1,500), survey (~£500), moving costs
Summary
Understanding UK Mortgages
Everything you need to know about getting a mortgage
LTV (Loan to Value)
Percentage of property value you're borrowing. 10% deposit = 90% LTV. Lower LTV = better rates.
Repayment Mortgage
Monthly payments cover interest + loan principal. You'll own the property outright at the end.
Interest-Only
Only pay interest monthly. The full loan is still owed at the end - you need a repayment plan.
Fixed Rate
Rate stays the same for a set period (2-10 years). Protects against rate rises.
Tracker Rate
Follows Bank of England base rate. Payments go up/down with the base rate.
SVR (Standard Variable Rate)
Lender's default rate, usually higher. You move to this when your deal ends.
Product/Arrangement Fee
Fee to set up the mortgage. Lower rates often have higher fees.
ERC (Early Repayment Charge)
Penalty for overpaying more than allowed (usually 10%/year) during a fixed deal.
APRC
Annual cost including fees, as a percentage. Useful for comparing deals.
Porting
Taking your mortgage deal to a new property when you move.
🏠 Government Schemes
- First Homes: 30-50% discount on new builds (income limits apply)
- Shared Ownership: Buy 25-75% share, rent the rest
- Lifetime ISA: Save £4k/year, get 25% bonus (£1k free)
- Stamp Duty Relief: No SDLT up to £300k, then 5% to £500k
✅ Do This
- • Get Agreement in Principle before house hunting
- • Check your credit score early
- • Save at least 5-10% deposit (more = better rates)
- • Use a mortgage broker (often free)
- • Get a proper survey done
❌ Avoid This
- • Don't max out your borrowing
- • Don't skip the survey
- • Don't apply for credit before mortgage
- • Don't forget fees (solicitor, survey, moving)
- • Don't choose just by monthly payment
Frequently Asked Questions
What is LTV (Loan to Value) and why does it matter?
LTV is the ratio of your mortgage to the property value, expressed as a percentage. For example, a £180,000 mortgage on a £200,000 home is 90% LTV. Lower LTV means you have more equity and typically qualifies you for better interest rates. Most lenders offer their best rates at 60% LTV or below. A higher LTV (above 90%) is considered higher risk, so rates are higher and fewer deals are available.
What is the difference between repayment and interest-only mortgages?
With a repayment mortgage, your monthly payment covers both the interest and a portion of the loan, so the mortgage is fully paid off by the end of the term. With an interest-only mortgage, you only pay the interest each month, so the original loan amount remains. Interest-only payments are lower, but you need a plan to repay the capital at the end (e.g. savings, investments, or selling the property). Most residential mortgages in the UK are now repayment.
How much can I borrow for a mortgage in the UK?
UK lenders typically offer 4 to 4.5 times your annual gross income, though some may go higher for certain professions or with large deposits. For joint applicants, both incomes are considered. Lenders also stress-test your affordability at higher rates (usually the standard variable rate + a buffer) to ensure you could still afford payments if rates rise. Your outgoings, credit score, and deposit size all affect the maximum amount you can borrow.
What is a fixed-rate vs variable-rate mortgage?
A fixed-rate mortgage locks your interest rate for a set period (typically 2 or 5 years). Your payments stay the same regardless of Bank of England base rate changes. A variable-rate mortgage (tracker or SVR) moves with the base rate, so payments can go up or down. Fixed rates offer certainty for budgeting, while variable rates can be cheaper initially but carry the risk of increases. Most UK borrowers choose fixed rates.
What fees should I budget for when buying a home?
Beyond the deposit, budget for: Stamp Duty Land Tax (varies by price and buyer status), solicitor/conveyancing fees (£1,000–£2,000), survey/valuation (£300–£1,500), mortgage arrangement fee (£0–£2,000, can be added to the loan), removal costs, and building insurance. First-time buyers pay no stamp duty up to £300,000, then 5% on the portion up to £500,000, with no relief at all above £500,000. Total additional costs typically range from £2,000 to £10,000+ depending on the property price.
Disclaimer: This calculator provides estimates only. Actual offers depend on your circumstances, credit history, and lender criteria. Speak to a qualified mortgage adviser. Rates and thresholds subject to change. Updated 2025.
Related calculators
Other free UK tools that follow on from this calculation.
Mortgage Affordability Calculator
How much UK lenders will typically offer at 4.5×, 5× or 5.5× income with your deposit.
Mortgage Overpayment Calculator
See how regular or lump-sum overpayments cut your mortgage term and interest cost.
Stamp Duty Calculator
SDLT for England & NI with post-April-2025 bands, plus Scotland LBTT and Wales LTT.
Buy-to-Let Calculator
Rental yield, ROI, SDLT surcharge and Section 24 mortgage interest restrictions.
Reviewed by
Alexandre Bernier, LLM (UK), CFP®, CIM®, PFP®. Financial planner with 18 years in banking and wealth management, holding a UK master of laws and the Canadian CFP®, CIM® and PFP® designations. Writes and reviews every calculator and article on FinanceToolz.
Last updated: August 2026. How figures are sourced, reviewed and corrected is set out in our editorial policy. This is general information, not regulated financial advice.
Sources
Every rate and threshold used by this calculator is taken from the official pages below. If a figure here disagrees with one of these, the official page is right, please tell us.