Mortgage repayment calculator
Enter your mortgage amount, interest rate and term to estimate the monthly payment on a UK repayment mortgage. The results are indicative only and show how your payments may be split between capital and interest over the mortgage term.
This tool provides general guidance only. It is not a mortgage application, offer, illustration or regulated advice under Financial Conduct Authority rules. Your actual rate, borrowing and monthly payment will depend on the lender's assessment of your individual circumstances.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
Think carefully before securing other debts against your home. Not all buy-to-let mortgages are regulated by the Financial Conduct Authority.
How mortgage repayments are calculated in the UK
On a standard capital and interest mortgage, also known as a repayment mortgage, each monthly payment covers the interest due and repays part of the outstanding loan. At the start of the term, a larger share of each payment usually goes towards interest because the loan balance is higher. As the balance reduces, more of each payment goes towards repaying the capital.
Interest-only mortgages work differently. The monthly payments cover the interest only, so the capital balance does not reduce during the mortgage term. The full loan amount must be repaid at the end of the term, usually through an approved repayment strategy such as savings, investments, sale of assets or another suitable plan.
What the calculator does and does not include
The figures shown assume the same interest rate applies for the full mortgage term. In practice, many UK mortgages have an initial fixed, tracker or discounted period, after which the mortgage may move onto the lender's Standard Variable Rate unless you remortgage or arrange a new product. The Standard Variable Rate can be higher or lower than your initial rate and can change over time.
The calculation does not include other costs such as buildings insurance, life cover, valuation fees, arrangement fees, broker fees, legal fees or Stamp Duty Land Tax. These costs can affect the overall cost of buying or remortgaging, so you should speak to an adviser for a personalised mortgage illustration.
Frequently asked questions
How are UK monthly mortgage repayments calculated?
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Monthly repayments are calculated using the loan amount, interest rate and mortgage term. For a repayment mortgage, the payment is designed to cover the interest due and repay the loan gradually so that the balance is cleared by the end of the term, assuming payments are made as scheduled and the rate remains the same.
Why does more of my early payment go towards interest?
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Interest is charged on the outstanding loan balance. At the start of the mortgage, the balance is at its highest, so the interest element of each monthly payment is usually larger. As the capital is repaid, the balance falls and more of each payment goes towards reducing the amount you owe.
What happens to my payments when the fixed rate ends?
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When your fixed rate or initial deal period ends, your mortgage will usually move onto your lender's Standard Variable Rate unless you remortgage or choose a new product with your existing lender. The Standard Variable Rate is often higher than the initial deal rate and can change, so many borrowers review their options before the deal ends.
What is the difference between repayment and interest-only?
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A repayment mortgage pays down the capital and interest each month, so the mortgage should be cleared by the end of the term if all payments are made as agreed. An interest-only mortgage only pays the interest during the term, so the full loan amount still needs to be repaid at the end using an acceptable repayment strategy.
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