Calculate your monthly mortgage repayment with UK-specific terms and references.
A mortgage calculator estimates your monthly home loan repayment based on the loan amount, interest rate, and mortgage term. The formula used is:
Where P = principal loan amount, r = monthly interest rate (annual rate ÷ 12), n = total number of monthly repayments. For example, a £250,000 repayment mortgage at 5.5% over 25 years results in a monthly repayment of approximately £1,526.
Stamp Duty (SDLT): In England and Northern Ireland, you may need to pay Stamp Duty Land Tax on properties over £250,000. First-time buyers get relief on properties up to £425,000. Scotland has LBTT and Wales has LTT — check with HMRC for current thresholds.
A mortgage repayment is calculated using the formula M = P[r(1+r)^n]/[(1+r)^n-1], where M is the monthly repayment, P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of repayments (term in years multiplied by 12).
With a repayment mortgage, your monthly payments cover both interest and capital, so you pay off the loan gradually. With an interest-only mortgage, you only pay the interest each month and must repay the full capital at the end of the term, typically through an ISA, pension, or other investment vehicle.
Most UK lenders require a minimum 5-10% deposit. A larger deposit (15-25%) gives you access to better interest rates. First-time buyers can use the Lifetime ISA to save up to £4,000 per year with a 25% government bonus towards their first home.
SDLT is a tax paid when buying property in England and Northern Ireland over £250,000. First-time buyers pay no SDLT on properties up to £425,000. Scotland has Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT) with different thresholds.