To work out the repayments on your mortgage, use our handy mortgage calculator below. You will need to enter the principal loan amount. Just enter the amount you need to borrow without the deposit.
How To Use the Mortgage Calculator?
Your loan amount is the full cost of the property or the agreed price, or an approximate figure of how much you want to borrow.
You deposit amount is usually 5% to 10% of the loan amount, however this can differ depending on the lender you choose. For example, your loan amount of £150,000 would require a deposit amount of 5% of £7,500 or 10% of £15,000.
The mortgage term is usually between 5 and 35 years, the more years you choose to repay back the loan the more interest you will pay. The most common repayment term is 30 years.
Your Mortgage Calculator Results
We can now get a general idea of how much your monthly mortgage payment will be, you can also choose the option of interest only to see what your repayments would look like if you wanted to pay interest only.
Important! You should use your results as a rough guide only, your results do not constitute financial advice, you should seek the advice of a mortgage advisor before making any financial decisions.
To work out the repayments on a mortgage, you will need to principal loan amount, the loan term, and the interest rate. You will also need to consider additional costs like arrangments and solicitors fees.
Use our mortgage affordability calculator to see how much you could borrow to buy a new home.
Working out your deposit
The average deposit you will need when buying a home is between 5% and 10%. This figure can vary depending on the available lenders. Your credit can affect the deposit amount required to get your mortgage.
If you have poor or bad credit, you may need to put a larger deposit down, so you could expect to pay between 15% to 20%.
For example, if you want to buy a house for £150,000, your deposit must be between £7,500 and £30,000, depending on the lender.
Why the interest rate matters
The interest rate will impact the amount you pay back each month. You may need to shop around to find the best lenders who offer a lower interest rate, and you may need to pay a higher deposit to get a better deal.
Fixed Rates vs Variable Rates
A fixed rate mortgage can give you the peace of mind that your monthly mortgage payments will remain the same each month, usually for a fixed amount of time, like five years.
Whereas a variable rate mortgage can change each month, your monthly repayments could be higher or lower depending on your lender. As of March 2023, the standard variable rate is 6%.
The Term of Your Mortgage
You can decide the term of your mortgage, the minimum term is five years while the maximum term is 40 years, but this could vary depending on your age.
The term you choose could affect the interest you pay on the mortgage. The shorter the term, the less interest you will pay; however, your monthly repayments will be higher.
You can work out your mortgage repayments using this formula, it can look daunting at first, but we can break it down.
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
M = Monthly mortgage payment
P= Principal loan amount
i = Interest rate (Annual interest rate divided by 12)
n = Total number of monthly payments (Loan term in years multiplied by 12)
Using the example above, we can calculate our monthly payments for a £200,000 mortgage as follows.
M = £200,000 [ (0.025/12) (1 + (0.025/12))^300 ] / [ (1 + (0.025/12))^300 – 1 ] M = £973.21
Your monthly payment would be £973.21