Mortgage Calculator UK
Estimate your UK mortgage repayment, stamp duty, LTV rate tier, and first-time buyer relief before making an offer on any property.
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Enter your values above to see the results.
Tips & Notes
- ✓Set a calendar reminder 6 months before your fixed deal expires — falling onto the SVR adds £300-£500 per month in typical market conditions.
- ✓First-time buyers pay no SDLT on properties up to £425,000 — preserving up to £8,750 in cash that would otherwise go directly to the government.
- ✓The 5-year fixed rate is typically lower than the 2-year fixed and provides more rate certainty — consider it if you plan to stay beyond 2 years.
- ✓LTV dramatically affects your rate — reaching 75% LTV or 60% LTV thresholds triggers meaningfully lower rate tiers at most UK lenders.
- ✓Overpaying by up to 10% per year is permitted on most fixed deals without penalty — even small regular overpayments cut total interest significantly.
- ✓Get a mortgage in principle before house hunting — it confirms your borrowing capacity and signals seriousness to estate agents and sellers.
Common Mistakes
- ✗Forgetting to remortgage at the end of the fixed term — reverting to SVR typically costs hundreds more per month than a new competitive deal.
- ✗Not accounting for stamp duty, solicitor fees, and survey costs — these add £5,000-£20,000 to the total cost of buying depending on purchase price.
- ✗Choosing interest-only for the lower payment without a credible vehicle to repay the capital at the end of the mortgage term.
- ✗Not comparing the total cost including product fees — a fee-free deal at a slightly higher rate often beats a low-rate deal with a £1,500 arrangement fee.
- ✗Applying for multiple mortgages in quick succession — each hard credit search affects your credit file and can lower your score at the worst moment.
- ✗Ignoring the LTV threshold effects — a 5% larger deposit can move you from 90% to 85% LTV, potentially saving 0.3-0.5% on the rate applied.
Mortgage Calculator UK Overview
UK mortgages follow the same amortization math as other fixed-rate loans, but the surrounding system — stamp duty land tax, the dominant 2 and 5-year fixed terms, and the standard variable rate trap — creates a very different ownership environment than US or Canadian mortgages.
This calculator handles UK-specific costs alongside the core repayment calculation.
What each field means:
- Property Price — full purchase price; used to calculate stamp duty and loan amount
- Down Payment — deposit as a percentage; below 20% typically triggers higher rates at most UK lenders
- Interest Rate — fixed rate for your initial term; most UK deals are 2 or 5-year fixed
- Loan Term — full repayment period, typically 25-35 years; your deal term is shorter
What your results mean:
- Monthly Payment — capital and interest repayment for your full loan
- Total Paid — all repayments over the full mortgage term
- Total Interest — interest cost over the full term; substantial on 25-year+ mortgages
- Loan Amount — property price minus deposit; determines your loan-to-value ratio
Example — £300,000 property, 10% deposit, 5.2% rate, 25-year term:
Loan amount: £270,000 Monthly repayment: £1,644 Total paid over 25 years: £493,200 Total interest: £223,200 Interest-only monthly: £270,000 x 5.2% / 12 = £1,170 (Interest-only leaves £270,000 still owed at end — capital repayment vehicle required)
EX: Stamp duty on £300,000 property — standard vs first-time buyer Standard buyer: £0 on first £250,000 + £2,500 on next £50,000 = £2,500 total SDLT First-time buyer: £0 on entire £300,000 (below £425,000 threshold) = £0 total SDLT First-time buyer saving: £2,500 — significant cash preserved for deposit or moving costs. On a £500,000 property: standard SDLT = £12,500 | first-time buyer SDLT = £3,750.
UK mortgage rates by loan-to-value (LTV):
| LTV | 2-year fixed | 5-year fixed | SVR (revert rate) |
|---|---|---|---|
| 60% LTV | ~4.2% | ~4.0% | ~7.5% |
| 75% LTV | ~4.5% | ~4.3% | ~7.5% |
| 90% LTV | ~5.2% | ~4.9% | ~7.5% |
Stamp duty land tax — England and Northern Ireland:
| Purchase Price | Standard SDLT | First-Time Buyer | Saving |
|---|---|---|---|
| £250,000 | £0 | £0 | £0 |
| £350,000 | £5,000 | £0 | £5,000 |
| £500,000 | £12,500 | £3,750 | £8,750 |
| £750,000 | £25,000 | Standard rates | £0 |
The standard variable rate that most UK mortgages revert to after a fixed deal expires is typically 2-3% above the Bank of England base rate — often 7-8% in current conditions. A borrower who forgets to remortgage at the end of a 2 or 5-year fixed deal slips onto the SVR and can see monthly repayments increase by £300-£500 overnight with no warning. Setting a calendar reminder 6 months before your deal ends to shop for a new fixed rate is one of the most valuable financial habits a UK mortgage holder can develop.
Frequently Asked Questions
Stamp Duty Land Tax in England and Northern Ireland is a tiered tax on property purchases. The first £250,000 is taxed at 0%, then 5% on the portion between £250,001 and £925,000, then 10% up to £1.5 million, then 12% above. First-time buyers receive relief — paying 0% on the first £425,000 and 5% on the portion up to £625,000. Scotland uses Land and Buildings Transaction Tax and Wales uses Land Transaction Tax — both have different rate schedules from England.
A mortgage in principle is a conditional statement from a lender that they would, in principle, lend you a specified amount based on an initial credit check and income assessment. It is not a formal offer — the lender still verifies income, conducts a full credit check, and appraises the property before a formal offer. Estate agents and sellers take mortgage in principle letters seriously as evidence a buyer can fund the purchase. Getting one typically involves only a soft credit search that does not affect your credit score.
Loan-to-value is the ratio of mortgage amount to property value. A £240,000 mortgage on a £300,000 property is 80% LTV. LTV determines your interest rate tier — most lenders offer best rates at 60% LTV, higher at 75%, and progressively worse at 85-95%. The difference between 90% LTV and 75% LTV can be 0.7-1% on the rate, which on £200,000 over 5 years represents thousands of pounds in additional interest.
The 5-year fixed rate is typically lower and eliminates the risk of remortgaging costs and a higher rate in 2 years. The 2-year fix makes more sense if you expect to move within 3 years, if rates are expected to fall significantly, or if you need the shorter-term flexibility. For most buyers staying long-term, the 5-year fix provides better value. Always compare total cost including product fees — a fee-free deal at a slightly higher rate often beats a low-rate deal with a £1,500 arrangement fee.
Most UK lenders calculate maximum borrowing at 4-4.5 times annual income, though some extend to 5-5.5 times for professionals with strong income. With two applicants, most lenders use combined income. The stress test — ensuring you could afford payments if rates rose to the SVR — also constrains maximum lending. Debt-to-income ratio, existing credit commitments, childcare costs, and other obligations are factored in through the affordability assessment required since the Mortgage Market Review regulations of 2014.
An offset mortgage links your savings account to your mortgage, using your savings balance to reduce the amount on which interest is calculated without paying down the mortgage. If you have a £200,000 mortgage and £30,000 in a linked account, you pay interest only on £170,000. The savings remain accessible and flexible. The benefit: you effectively earn your mortgage interest rate tax-free on your savings. This is particularly valuable for higher-rate taxpayers. Offset mortgages typically carry a slightly higher rate than standard deals.