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🇬🇧United Kingdom

UK Mortgage Calculator

Calculate your UK mortgage monthly repayment, total interest, and compare deals.

£
%
%
months

Results

Monthly Repayment£1,501
Mortgage Amount£270.0K
Total Interest£180.2K
Total Repayment£450.2K
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What is UK Mortgage?

A UK Mortgage Calculator helps you estimate monthly repayments for a residential mortgage in England, Wales, Scotland, or Northern Ireland. With average UK house prices around £290,000 (2025), understanding your monthly costs is essential before making an offer.

UK mortgage rates have risen significantly from historic lows of 1-2% (2021) to around 4-5% (2025). The Bank of England base rate directly influences mortgage pricing. Fixed-rate mortgages (2-year or 5-year fixes) are most popular, providing payment certainty.

Most UK lenders require a minimum 5-10% deposit, though 15-20% deposit gets you significantly better rates. Help to Buy and Shared Ownership schemes can help first-time buyers with smaller deposits. The maximum mortgage term is typically 35 years (some lenders offer 40 years).

Unlike the US where mortgage interest is tax-deductible, UK homeowners get no tax relief on mortgage interest for their primary residence (buy-to-let landlords had this relief removed in stages by 2020).

Stamp Duty Land Tax (SDLT) is an additional cost when buying: 0% on the first £250,000 (£425,000 for first-time buyers), then 5%, 10%, and 12% on higher portions. Use our UK Stamp Duty Calculator for the exact amount.

Formula

Monthly Payment = L × r × (1 + r)^n / ((1 + r)^n − 1)

Where: - L = Loan amount (Property Price − Deposit) - r = Monthly interest rate - n = Total months

Worked Example — £300,000 property, 10% deposit, 4.5%, 25 years: Loan = £300,000 × 0.90 = £270,000 Monthly = £1,501 Total Interest = £180,290 Total Repayment = £450,290

Monthly repayments at different rates (£270K loan, 25 years): - 3.5%: £1,350 - 4.0%: £1,423 - 4.5%: £1,501 - 5.0%: £1,580 - 5.5%: £1,663

Each 0.5% rate increase adds ~£75-80/month on a £270K mortgage.

How to use this UK Mortgage Calculator?

1. Enter the Property Price. 2. Enter your Deposit as a percentage (5-50%). Higher deposit = better rates. 3. Set the Interest Rate from your mortgage offer or comparison site. 4. Choose Mortgage Term (25 years = 300 months is standard, 30 years = 360, 35 years = 420). 5. See your monthly repayment, total interest, and total amount repaid.

Affordability tip: Lenders typically allow borrowing 4-4.5x your annual salary. A £50,000 salary = max mortgage of £200,000-£225,000.

Frequently asked questions

What mortgage can I afford on my salary?
Lenders typically offer 4-4.5x your annual income. Joint applicants combine salaries. £40K salary = ~£180K mortgage. £60K salary = ~£270K. £80K salary = ~£360K. You also need to pass an affordability stress test at higher rates.
Fixed or variable rate — which is better?
Fixed rates (2 or 5 year) give payment certainty. Variable/tracker rates may be cheaper initially but can rise with the Bank of England base rate. If rates are expected to fall, a tracker may save money. If uncertain, a 5-year fix provides stability.
What is a good mortgage rate in the UK right now?
As of 2025, competitive rates are around 4.0-4.5% for 2-year fixes and 3.8-4.3% for 5-year fixes (with 25%+ deposit). Rates improve significantly with larger deposits: 5% deposit may get 5.5%, while 40% deposit may get 3.8%.
Do I need to pay Stamp Duty?
Stamp Duty (SDLT) applies on properties above £250,000 (£425,000 for first-time buyers up to £625,000). Rates: 0% up to threshold, 5% (£250K-£925K), 10% (£925K-£1.5M), 12% (above £1.5M). Scotland and Wales have their own versions (LBTT and LTT).
Can I overpay my mortgage?
Most lenders allow overpayments of up to 10% of the outstanding balance per year without penalty during a fixed term. Overpaying reduces the term and saves significant interest. A £100/month overpayment on a £270K mortgage at 4.5% saves ~£30,000 in interest and clears the mortgage 4 years early.
What happens when my fixed rate ends?
You move to the lender's Standard Variable Rate (SVR), typically 2-3% higher than fixed rates. Always remortgage before your fix ends — set a reminder 3-4 months before expiry. Most people remortgage every 2-5 years.
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