Basic Mortgage Calculators UK - Essential Free Tools

5 Essential Calculators for UK Homebuyers & First-Time Buyers

Last Updated
October 2025
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FCA Verified

Get started with our fundamental mortgage calculators designed to help you understand affordability, monthly payments, and basic mortgage concepts. Updated with current UK lending criteria (October 2025).

Affordability Calculator

Calculate how much you can afford to borrow based on your income, expenses, and deposit.

  • Income and expense analysis
  • Debt-to-income ratio calculation
  • Maximum loan amount estimation
  • Stress testing at higher rates
Calculate Affordability

Interest Rates Calculator

Compare different interest rates and see how they affect your monthly payments and total cost.

  • Fixed vs variable rate comparison
  • Payment difference analysis
  • Total interest cost calculation
  • Rate change impact assessment
Compare Rates

Repayment Calculator

Calculate your monthly mortgage payments based on loan amount, interest rate, and term.

  • Monthly payment calculation
  • Interest and principal breakdown
  • Payment schedule generation
  • Different term comparisons
Calculate Payments

Deposit Calculator

Work out how much deposit you need and explore different LTV ratios and their impact.

  • Minimum deposit calculation
  • LTV ratio analysis
  • PMI cost estimation
  • Deposit saving timeline
Calculate Deposit

Mortgage Term Calculator

Compare different mortgage terms and see how term length affects your payments and total cost.

  • 15, 20, 25, 30+ year comparisons
  • Payment vs interest analysis
  • Total cost breakdown
  • Optimal term recommendations
Compare Terms

How to Use These Basic Mortgage Calculators

Follow this 5-step process to get the most accurate mortgage estimates and make informed decisions about your property purchase.

1

Start with the Affordability Calculator

Begin your mortgage journey with our Affordability Calculator to determine your maximum borrowing capacity. Enter your annual income (£30,000-100,000+ typical range), monthly expenses (£500-2,000 average), and available deposit (5-40% of property value). UK lenders typically offer 4.5x single income or 4.5x joint income (some offer 5-5.5x for high earners £50k+). For example: £50,000 salary = £225,000 maximum borrowing, £60,000 joint income = £270,000 maximum. The calculator applies FCA stress testing at +2-3% higher rates to ensure you can afford payments if rates rise. This gives you a realistic budget for property searching.

💡 Affordability Tip: Lenders assess affordability using income multiples (4.5x typical, 5-5.5x for high earners) and debt-to-income ratio (DTI, ideally <40%). Monthly mortgage payment should be ≤35% of gross income. For £50k salary (£4,167/month gross): maximum £1,458/month payment. Budget for additional costs: buildings insurance £200-600/year, life insurance £10-50/month, maintenance £100-200/month, service charges £100-300/month (flats). Total housing costs should be ≤40% of gross income.

2

Calculate Your Required Deposit

Use the Deposit Calculator to determine how much deposit you need for your target property. UK minimum deposit: 5% (95% LTV), though 10% (90% LTV) recommended for better rates. Common LTV bands: 60% (40% deposit, best rates 4.2-4.8%), 75% (25% deposit, excellent rates 4.3-4.9%), 80% (20% deposit, very good rates 4.5-5.2%), 85% (15% deposit, good rates 4.7-5.5%), 90% (10% deposit, competitive rates 4.8-5.8%), 95% (5% deposit, higher rates 5.5-6.5%). For £300,000 property: 5% = £15k deposit, 10% = £30k, 20% = £60k, 25% = £75k. Lower LTV = better rates: moving from 95% to 90% saves £150-250/month.

⚠️ Deposit Sources: Acceptable deposit sources: cash savings, ISAs, Lifetime ISA (25% government bonus on £4k/year), Help to Buy ISA, gifted deposits from immediate family (requires gifted deposit letter), property sale proceeds, inheritance. Budget for additional costs beyond deposit: stamp duty (£0-30k+, first-time buyers get relief up to £425k), legal fees £500-1,500, survey £300-1,500, mortgage fees £0-2,000, moving costs £500-2,000. Total additional costs: £2,000-8,000. Recommended total savings: deposit + additional costs + 3-6 months emergency fund.

3

Compare Interest Rates and Their Impact

The Interest Rates Calculator shows how different rates affect monthly payments and total cost. Current UK rates (October 2025): 2-year fixed 60% LTV = 4.2-4.8%, 75% LTV = 4.3-4.9%, 80% LTV = 4.5-5.2%, 85% LTV = 4.7-5.5%, 90% LTV = 4.8-5.8%, 95% LTV = 5.5-6.5%. 5-year fixed rates typically 0.1-0.3% higher. Variable/tracker rates: 4.5-6.0%. Rate impact on £250,000 mortgage over 25 years: 4.0% = £1,319/month (£145,700 interest), 4.5% = £1,389/month (£166,700 interest, +£70/month), 5.0% = £1,461/month (£188,300 interest, +£72/month), 5.5% = £1,535/month (£210,500 interest, +£74/month). A 0.5% rate difference costs £70-75/month (£1,680-1,800/year).

✅ Rate Shopping: Compare rates from 5-10 lenders to find best deal. Lower LTV unlocks better rates: moving from 90% to 80% LTV saves 0.3-0.6% (£75-150/month on £250k mortgage). Fixed vs variable: 2-year fixed offers short-term certainty (4.5-5.5%), 5-year fixed provides stability (4.8-5.8%), 10-year fixed gives maximum security (5.2-6.2%). Variable/tracker rates (4.5-6.0%) track Bank of England base rate (currently 5.25%). When fixed term ends, revert to lender's SVR (7-9%, significantly higher). Plan to remortgage before fixed term ends to avoid SVR.

4

Calculate Monthly Repayments

Use the Repayment Calculator to see exact monthly payments based on your mortgage amount, interest rate, and term. Enter loan amount (e.g., £250,000), interest rate (e.g., 4.5%), and term (e.g., 25 years). Calculator shows: monthly payment (£1,389), total repaid (£416,700), total interest (£166,700), capital vs interest breakdown. Early payments are mostly interest (month 1: £150 capital, £938 interest), later payments mostly capital (final year: £1,340 capital, £50 interest). Ensure monthly payment fits your budget: should be ≤35% of gross monthly income. For £1,389 payment, need £3,970+ monthly income (£47,640+ annual).

💡 Repayment Planning: Budget for additional monthly costs beyond mortgage: buildings insurance £17-50/month (£200-600/year, required by lender), life insurance £10-50/month (recommended), home maintenance £100-200/month (1% of property value annually), service charges £100-300/month (flats), ground rent £8-42/month (£100-500/year leasehold), council tax £100-300/month. Total additional costs: £300-800/month. Total housing costs (mortgage + additional) should be ≤40% of gross income. Consider overpayments: most lenders allow 10% annual overpayments penalty-free.

5

Compare Different Mortgage Terms

The Mortgage Term Calculator helps you compare different term lengths and their impact on monthly payments and total cost. UK standard term: 25 years. Common terms: 20 years (higher monthly payments, less interest), 25 years (balanced), 30 years (lower monthly payments, more interest), 35-40 years (lowest monthly payments, significantly more interest, age restrictions). £250,000 at 4.5%: 20 years = £1,582/month (£129,680 interest, saves £37k vs 25 years), 25 years = £1,389/month (£166,700 interest), 30 years = £1,267/month (£206,120 interest, +£39k vs 25 years), 35 years = £1,183/month (£247,460 interest, +£81k vs 25 years). Shorter terms save £30,000-80,000+ in interest but increase monthly payments by £200-400.

✅ Term Selection: Balance monthly affordability against total cost. Extending from 25 to 30 years reduces payment by £120-150/month but adds £35k-45k interest. Reducing from 25 to 20 years increases payment by £190-220/month but saves £35k-40k interest. Maximum term depends on age: most lenders require mortgage paid off by age 70-75, some extend to 80-85. For age 35 buyer with age 75 limit = maximum 40-year term. You can overpay to reduce term later (10% annual allowance penalty-free). First-time buyers increasingly choose 30-35 years for affordability.

Important Mortgage Planning Reminders

  • Use All 5 Calculators Together: Each calculator provides different insights. Start with affordability (maximum borrowing), then deposit (LTV optimization), interest rates (rate comparison), repayments (monthly budget), and term (total cost vs affordability). Using all 5 gives complete picture of your mortgage options.
  • Get Agreement in Principle (AIP): After using calculators, get AIP from 2-3 lenders to confirm actual borrowing capacity (free, soft credit check, 10-20 minutes online). AIP valid 60-90 days and strengthens property offers by showing you're a serious buyer with confirmed financing.
  • Budget Conservatively: Lenders stress test at +2-3% higher rates. If offered 4.5%, you must afford payments at 6.5-7.5%. When fixed term ends, revert to SVR (7-9%). Maintain 3-6 months emergency fund. Budget for additional costs: insurance, maintenance, service charges, council tax (£300-800/month total).
  • Optimize Your LTV: Lower LTV = better rates. Moving from 95% to 90% LTV saves £150-250/month (£4,500-7,500 over 2 years). Moving from 90% to 80% LTV saves £75-150/month (£2,250-4,500 over 2 years). Even small deposit increases can unlock better rate bands at 90%, 85%, 80%, 75%, 60% LTV thresholds.
  • Compare Multiple Lenders: Rates vary significantly between lenders. Compare 5-10 offers to find best deal. Use mortgage brokers (often free, paid by lender commission) to access whole-of-market deals and negotiate better rates. Don't just accept your current bank's offer.
  • Professional Advice: These calculators provide estimates only. For personalized advice on mortgage products, rates, terms, government schemes, and affordability based on your full financial circumstances, consult FCA-regulated mortgage advisors who can assess your situation and recommend appropriate strategies.

FCA Compliance Notice

These basic mortgage calculators provide estimates for informational purposes only. They do not constitute financial, mortgage, or investment advice. Actual mortgage terms, rates, and affordability depend on individual circumstances including income, credit score, employment type, existing debts, property type, and lender policies. UK mortgage affordability is assessed using income multiples (typically 4.5x single or joint income, some lenders offer 5-5.5x for high earners £50k+) and debt-to-income ratio (DTI, ideally <40%). Lenders stress test affordability at +2-3% higher rates to ensure you can afford payments if rates rise. Current UK mortgage rates (October 2025): 2-year fixed 60% LTV = 4.2-4.8%, 75% LTV = 4.3-4.9%, 80% LTV = 4.5-5.2%, 85% LTV = 4.7-5.5%, 90% LTV = 4.8-5.8%, 95% LTV = 5.5-6.5%. 5-year fixed rates typically 0.1-0.3% higher. Variable/tracker rates: 4.5-6.0% (track Bank of England base rate, currently 5.25%). Rate impact: 0.5% difference costs £70-75/month on £250k mortgage (£1,680-1,800/year, £4,200-4,500 over 2-year fixed). When fixed term ends, revert to lender's Standard Variable Rate (SVR, typically 7-9%, significantly higher payments). UK minimum deposit: 5% (95% LTV), though 10% (90% LTV) recommended for better rates. Lower LTV = better rates: moving from 95% to 90% saves £150-250/month, moving from 90% to 80% saves £75-150/month. Beyond deposit, budget for additional costs: stamp duty (£0-30k+, first-time buyers get relief up to £425k), legal fees £500-1,500, survey £300-1,500, mortgage fees £0-2,000, moving costs £500-2,000, insurance £200-600/year. Total additional costs: £2,000-8,000. Monthly housing costs beyond mortgage: buildings insurance £17-50/month (required), life insurance £10-50/month (recommended), maintenance £100-200/month, service charges £100-300/month (flats), ground rent £8-42/month (leasehold), council tax £100-300/month. Total additional costs: £300-800/month. Total housing costs (mortgage + additional) should be ≤40% of gross income. Mortgage term impact: extending from 25 to 30 years reduces payment by £120-150/month but adds £35k-45k interest; reducing from 25 to 20 years increases payment by £190-220/month but saves £35k-40k interest. Maximum term depends on age: most lenders require mortgage paid off by age 70-75, some extend to 80-85. Most mortgages allow 10% annual overpayments penalty-free - overpaying £200/month on £250k at 4.5% saves £42k interest and clears 5 years early. Interest rates, lender policies, and mortgage products can change frequently. Always obtain personalized quotes from multiple lenders (compare 5-10 offers), get Agreement in Principle (AIP) from 2-3 lenders to confirm actual borrowing capacity, and consult FCA-regulated mortgage advisors for professional guidance on mortgage products, rates, terms, government schemes, and affordability based on your full financial circumstances. MortgagePro.uk is a comparison tool and not a financial advisor, mortgage lender, or mortgage broker.

Why Use Our Basic Mortgage Calculators?

Our basic mortgage calculators are designed specifically for UK homebuyers who are starting their property journey. Whether you're a first-time buyer exploring your options or an experienced homeowner looking to remortgage, these essential tools provide accurate, instant calculations based on current UK lending criteria and regulations updated for October 2025.

Each calculator is professionally verified and follows the calculation methods used by major UK lenders including Nationwide, Halifax, Barclays, HSBC, and Santander. We incorporate the latest Financial Conduct Authority (FCA) affordability rules and stress testing requirements to give you realistic estimates of what you can borrow.

All calculators are 100% free to use, require no registration, and provide instant results. Your data is never stored or shared, ensuring complete privacy and security.

How to Use Basic Mortgage Calculators Effectively

Step 1: Start with the Affordability Calculator

Begin your mortgage journey by understanding how much you can realistically borrow. The Affordability Calculator considers your annual income, monthly expenses, existing debts, and deposit amount. UK lenders typically offer 4-4.5 times your annual income, but high earners (£75,000+) may qualify for up to 5.5 times income with certain lenders.

Pro Tip: Include all sources of income (salary, bonuses, rental income, dividends) but be conservative with variable income. Lenders typically average the last 2-3 years for self-employed applicants. Learn more in our Self-Employed Mortgage Guide.

Step 2: Calculate Your Required Deposit

Use the Deposit Calculator to determine how much deposit you need for your target property. First-time buyers typically need 5-10% minimum, but a larger deposit (15-20%) secures significantly better interest rates. For a £300,000 property:

  • 5% deposit (£15,000): Typical rate 5.5-6.5% - Monthly payment ~£1,650
  • 10% deposit (£30,000): Typical rate 4.8-5.8% - Monthly payment ~£1,550
  • 20% deposit (£60,000): Typical rate 4.2-5.0% - Monthly payment ~£1,400

A larger deposit can save you £100-250 per month and £30,000-75,000 over the mortgage lifetime. Explore government schemes like First Homes and Lifetime ISA to boost your deposit.

Step 3: Compare Interest Rates and Monthly Payments

The Interest Rates Calculator helps you understand how different rates impact your monthly payments and total cost. As of October 2025, typical UK mortgage rates are:

  • 2-Year Fixed: 4.5-5.5% (best for short-term certainty)
  • 5-Year Fixed: 4.8-5.8% (popular for stability)
  • 10-Year Fixed: 5.2-6.2% (maximum long-term security)
  • Variable/Tracker: 5.0-6.0% (follows Bank of England base rate)

Use the Repayment Calculator to see exact monthly payments for your loan amount and chosen rate. Remember that lenders stress test at 7-8% to ensure you can afford payments if rates rise.

Step 4: Choose the Right Mortgage Term

The Mortgage Term Calculator compares different term lengths. For a £250,000 mortgage at 5% interest:

  • 15 years: £1,977/month - Total interest: £105,860
  • 25 years: £1,462/month - Total interest: £188,600
  • 30 years: £1,342/month - Total interest: £233,120
  • 35 years: £1,260/month - Total interest: £277,200

Shorter terms mean higher monthly payments but massive interest savings. Consider your age, income stability, and retirement plans when choosing. Many borrowers start with 30-35 years for affordability, then make overpayments to reduce the term.

UK Mortgage Basics: What You Need to Know (2025)

Current UK Lending Criteria

UK mortgage lending in 2025 follows strict Financial Conduct Authority (FCA) regulations introduced after the 2008 financial crisis. Key requirements include:

  • Affordability Assessment: Lenders must verify you can afford payments at current rates plus 2-3% stress testing
  • Income Verification: 3 months payslips for employed, 2-3 years accounts for self-employed
  • Credit Check: Minimum credit score typically 620-650 (varies by lender)
  • Debt-to-Income Ratio: Total debts should not exceed 40-45% of gross income
  • Age Limits: Most lenders require mortgage to end before age 70-75

Repayment vs Interest-Only Mortgages

Repayment Mortgages (most common): You pay both interest and capital each month. By the end of the term, you own the property outright. Monthly payments are higher but you build equity from day one.

Interest-Only Mortgages: You only pay interest monthly, with the full loan amount due at the end. Monthly payments are 40-50% lower, but you must have a credible repayment strategy (investments, property sale, etc.). Mainly used by buy-to-let investors. Compare both options with our Repayment vs Interest-Only Calculator.

Fixed vs Variable Rate Mortgages

Fixed Rate Mortgages: Interest rate locked for 2, 3, 5, or 10 years. Provides payment certainty and protection from rate rises. Currently the most popular choice with 75% of UK borrowers choosing fixed rates. Ideal when rates are expected to rise or for budgeting certainty.

Variable Rate Mortgages: Rate can change based on lender's standard variable rate (SVR) or Bank of England base rate (tracker mortgages). May be lower initially but carries risk of payment increases. Suitable if you expect rates to fall or plan to remortgage soon.

Discount Mortgages: A discount off the lender's SVR for a set period. Rate varies but the discount is guaranteed. Less popular than fixed or tracker products.

Additional Costs to Consider

Beyond your deposit and monthly payments, budget for these essential costs:

  • Stamp Duty Land Tax (SDLT): 0% up to £250,000 (£425,000 for first-time buyers), then 5% up to £925,000, 10% up to £1.5m, 12% above. Calculate with our Stamp Duty Calculator
  • Valuation Fee: £250-600 depending on property value
  • Survey: £400-1,500 (Homebuyer Report or Full Structural Survey recommended)
  • Legal Fees: £850-1,500 for conveyancing
  • Mortgage Arrangement Fee: £0-2,000 (can often be added to mortgage)
  • Broker Fee: £0-500 (many brokers are free, paid by lenders)

Total upfront costs typically range from £2,000-8,000 depending on property value. Use our Fees & Costs Calculators for accurate estimates.

Frequently Asked Questions

How accurate are basic mortgage calculators?

Our basic mortgage calculators use the same calculation formulas as UK lenders and are accurate to within £5-10 per month for standard mortgages. However, they provide estimates only. Final mortgage offers depend on your full financial assessment, credit history, property valuation, and lender-specific criteria. Always get a Decision in Principle (DIP) from lenders for confirmed borrowing amounts.

What's the minimum deposit for a UK mortgage in 2025?

The minimum deposit is typically 5% of the property value for first-time buyers and 10% for other buyers. However, 5% mortgages have limited availability and higher interest rates (typically 5.5-6.5%). A 10% deposit opens up more lender options with rates around 4.8-5.8%. For the best rates (4.2-5.0%), aim for a 20-25% deposit. Some specialist lenders offer 100% mortgages with guarantors, but these are rare and expensive.

Can I get a mortgage with bad credit?

Yes, but options are limited and rates are higher. Minor credit issues (1-2 missed payments over 2 years ago) may not significantly impact your application with mainstream lenders. More serious issues (CCJs, defaults, bankruptcy) require specialist bad credit lenders who typically charge 6-10% interest and require 15-25% deposits. Wait 3-6 years after serious credit issues for better rates. Check your credit score with Experian, Equifax, or TransUnion before applying.

Should I use a mortgage broker or go direct to lenders?

Mortgage brokers are recommended for most buyers, especially first-timers. They access deals from 50-100+ lenders (including exclusive products not available direct), handle paperwork, and often charge no fee (paid by lenders). Direct applications work if you have a simple case and know which lender offers the best rate for your situation. Brokers are essential for complex cases (self-employed, bad credit, high LTV, multiple income sources).

How long does the mortgage application process take?

The typical timeline is: Decision in Principle (DIP) - instant to 24 hours; Full mortgage application - 2-4 weeks; Property valuation - 1-2 weeks; Mortgage offer - 1-2 weeks after valuation; Exchange and completion - 4-12 weeks. Total process: 8-20 weeks from application to moving in. Fast-track services can reduce this to 4-6 weeks for straightforward cases. Delays often occur with property surveys, legal searches, or incomplete documentation.

What happens when my fixed rate ends?

When your fixed rate period ends, you automatically move to your lender's Standard Variable Rate (SVR), typically 7-9% - significantly higher than fixed rates. You should remortgage 3-6 months before your fixed term ends to secure a new deal. Use our Remortgage Calculator to compare staying with your current lender vs switching. Switching can save £100-300 per month. Set a calendar reminder 6 months before your fixed term ends.