Mortgage repayment calculator

How does this mortgage repayment calculator work?

This mortgage calculator takes the information you provide and, using a few key assumptions, it works out how much you could expect to pay each month.

To use the calculator, you’ll need to know:

• The amount you want to borrow. As a rough guide, this will be the value of the property minus the size of your deposit and/or the equity you own in it.
• The mortgage term, which is how long you need to repay your mortgage. This will often be up to around 25 years, but it may be possible to borrow over a longer period.
• The interest rate. If you’re not sure how much you may be charged, you can see our mortgage charts to get an idea of the deals lenders are currently offering.

As long as you have the above information to hand, it should be easy to calculate how much your estimated monthly mortgage payments could be.

Note that, to give you this estimate, our mortgage repayment calculator assumes you will be charged the same amount of interest over the whole term you have specified.

How to calculate what your mortgage repayments could be

To use the calculator, you first need to input the amount you think you’ll need to borrow, followed by the number of years you want to repay the mortgage over.

Next, you need to specify the interest rate of your mortgage deal.

Finally, you need to choose whether you want to repay the capital and interest of the mortgage in your monthly payments, or only the interest. Most residential mortgages are “capital and interest”, which means your monthly payments pay off the amount you borrowed as well as the interest charged. This means you won’t owe any money at the end of the term.

By contrast, payments on interest-only mortgages only cover the interest charged, so you’ll need to find a way to repay the capital at the end of the term. These are more common on buy-to-let deals. See our guide to repayment and interest-only mortgages.

Once you’ve filled in all the required information, click “calculate” to see an estimate of your monthly mortgage repayments.

What does this calculator not include?

Our mortgage repayment calculator can only give you an idea of how much you’ll be paying per month for your mortgage, not an exact or guaranteed figure.

Your actual mortgage payments may end up being different to this sum as the calculator doesn’t take your personal circumstances into consideration. For example, the type of mortgage you choose, the loan-to-value you require, your financial situation and your credit history will all affect the interest charged by the lender, and so the amount you need to pay each month.

Furthermore, it’s worth noting that, because this mortgage loan calculator assumes you will pay the same amount of interest during the term you specify, it won’t account for any changes to the interest rate if you opt for a variable or tracker mortgage.

Moreover, even if you choose a fixed mortgage, these deals typically only fix the interest rate for a specified period (such as two, three or five years), not the full mortgage term. After this fixed term, the mortgage will revert to the lender’s Standard Variable Rate (SVR), which is likely to be higher.

As a result, the mortgage repayment calculator may only give you an idea of your payments for the initial fixed period. Your payments are likely to change during the overall mortgage term as you remortgage to a new fixed deal (and rate) or move to a variable deal, for example.

Bear in mind that, as well as your mortgage payments each month, you’ll also need to budget for the additional costs involved in taking out a mortgage and buying a home. These could include product or arrangement fees on the mortgage, valuation fees, legal fees, survey costs and stamp duty, to name just a few. See our guide for the costs involved in buying a home.

Should I speak to a mortgage broker?

Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive products and rates that aren’t available to the public. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to pass specific qualifications before they can give you advice.

Speak to an award-winning mortgage broker today

Why use a mortgage repayment calculator?

Mortgage repayment calculators may not be able to tell you exactly what your mortgage payments would be each month, but they are a free tool that can give you a useful estimate of how much a mortgage could cost you.

For example, if you know how much you need to borrow and the term you want to borrow over, and you have an idea of the interest you may be charged, the calculator allows you to see if the monthly payments would be within your budget.

You can then change the term, interest rate or loan size to see the difference this makes to your payments.

If you use the calculator and find you couldn’t comfortably afford the payments, this could prompt you to save up a larger deposit, search for a cheaper property or improve your credit score, for example, before resuming the mortgage process again.

On the other hand, if the calculator shows the monthly payments are comfortably within your budget, this could give you confidence to take the next step in the process and start your mortgage application.

Does a mortgage repayment calculator affect your credit score?

Using our mortgage repayment calculator won’t leave any trace on your credit history or affect your score. The calculator simply uses the information you provide to estimate your monthly repayments and doesn’t have anything to do with your credit report. This means you can use the calculator as often as you want to without worrying about any potential negative impact to your credit score or finances.

Your credit score will only be affected when you formally apply for a mortgage.

What is a mortgage repayment?

A mortgage repayment is simply the sum you need to send to your mortgage lender each month to pay off the amount you borrowed (plus interest).

Most monthly payments for residential mortgages will pay off the capital (the amount borrowed) and the interest charged. And, if you take out a fixed mortgage, your payments should stay the same for the length of the specified period.

When you apply for a mortgage, the lender will tell you exactly what your monthly payments will be. Many people set up a direct debit for these payments to make sure they go out automatically, meaning they won’t accidentally miss them.

Can my mortgage repayment go down if I overpay during the term?

You may be able to reduce your monthly payments by making one or more overpayments during the term of your mortgage.

However, you are likely to save more money on interest if you use your overpayment to shorten your mortgage term instead of reducing your monthly payments. This allows you to clear your balance quicker and cut the amount of interest charged.

Lenders handle overpayments in different ways, as some may automatically reduce your monthly payments while others shorten the loan term.

As a result, it’s important to check the overpayment terms of your lender (including any early repayment charges which may apply) and contact the lender if you’re unsure or want to make any changes. For example, you may be able to request to shorten your mortgage term and keep your monthly payments the same.

If you decide to overpay your mortgage, look out for any Early Repayment Charges (ERC). Most lenders allow you to overpay up to 10% of your outstanding mortgage balance without facing any additional costs but, if you want to pay off more than this, extra charges may apply.

Other mortgage calculators

If you’re not sure what loan-to-value (LTV) you require for your mortgage, you can use our LTV calculator.

To see how much you could realistically borrow on a mortgage, based on your annual income, visit our “how much can I borrow” mortgage calculator.

If you’re buying a property, our stamp duty calculator can give you an estimate of how much Stamp Duty you may need to pay.