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    Mortgage Calculator

    Calculate monthly mortgage payments, total interest, and affordability based on property price, deposit, interest rate, and term length.

    Last updated: March 2026

    Monthly Payment

    £$1,250.62

    Total Repayment

    £$375,187

    Total Interest

    £$150,187

    Loan-to-Value

    90.0%

    📊

    How You Compare

    Your mortgage rate is better than 50% of UK residential mortgages.

    Industry typical: 3.5-6.0%

    Source: Bank of England 2025

    💡 What This Means

    • 📊 £1251/month is a typical UK mortgage payment. Budget an additional 1-2% of the property value per year for maintenance.
    • 💰 You'll pay £150187 in interest — that's 40% of total repayment. Overpaying by even £100/month could save you thousands.
    • ⚠️ Your LTV of 90.0% is high. Aim for under 80% to access the best interest rates — even a small increase in your deposit helps.

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    What is Mortgage Repayment?

    A mortgage repayment is the monthly amount you pay to your lender covering both the interest on your loan and a portion of the principal. Understanding your monthly commitment is essential before committing to a property purchase. Use the Home Affordability Calculator to check what you can borrow, and the Stamp Duty Calculator to estimate upfront tax costs.

    The Formula

    Monthly Payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1]

    P = principal (loan amount), r = monthly interest rate (annual rate ÷ 12), n = total number of monthly payments (term in years × 12).

    Worked Example

    A £250,000 property with a £50,000 deposit gives a £200,000 mortgage at 4.5% over 25 years.

    1. Principal (P) = £200,000
    2. Monthly rate (r) = 4.5% ÷ 12 = 0.375% = 0.00375
    3. Number of payments (n) = 25 × 12 = 300
    4. Monthly Payment = £200,000 × [0.00375 × 1.00375^300] ÷ [1.00375^300 − 1] = £1,111
    5. Total repaid = £1,111 × 300 = £333,300. Total interest = £133,300

    📌 Monthly repayments of £1,111 over 25 years, with £133,300 in total interest — 67% of the original loan amount.

    Why This Matters

    Affordability stress test

    Lenders stress-test at current rate + 3%. If your mortgage is at 4.5%, you must afford payments at 7.5%. Calculate both scenarios to understand your true affordability buffer before making an offer.

    Term length trade-off

    A 30-year term reduces monthly payments by ~15% vs 25 years, but increases total interest by 30-40%. Use the calculator to model different terms and find your optimal balance between monthly comfort and total cost.

    Common Mistakes

    ❌ Forgetting additional costs

    Your monthly housing cost includes mortgage payment, buildings insurance, service charge (flats), ground rent (leasehold), and maintenance. Budget an extra 20-30% on top of the mortgage payment for these.

    ❌ Not modelling rate changes

    Fixed rates end after 2-5 years. If you fix at 4.5% but the variable rate is 6.5% when your fix ends, your payments jump from £1,111 to £1,320/month. Always model the worst-case scenario.

    Industry Benchmarks

    CategoryGoodAveragePoor
    Monthly payment as % of incomeBelow 28%28-36%Above 36%
    Total interest over termBelow 60% of principal60-100%Above 100%

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