Mortgage Repayment Calculator UK 2025

Calculate Monthly Repayments

Enter your mortgage details to see your monthly payment and total cost breakdown. Our calculator shows you exactly how much you'll pay each month, the total interest over the mortgage term, and helps you understand the impact of different loan amounts, interest rates, and repayment periods on your overall mortgage costs.

Loan Amount (£)

Interest Rate (%)

Term (years)

Understanding UK Mortgage Repayments

Capital and Interest: Mortgage repayments consist of capital (the amount borrowed) and interest (the cost of borrowing). With a repayment mortgage, you gradually pay off the loan over the term while paying interest on the remaining balance.

Payment Structure: Early payments are mostly interest with small capital portions. As the loan progresses, more of each payment goes toward capital, reducing the outstanding balance faster.

Term Impact: Longer terms mean lower monthly payments but higher total interest costs. Use our mortgage term calculator to compare different term lengths.

Rate Considerations: Fixed rates provide payment certainty, while variable rates can change. Consider using our interest rates calculator to see how rate changes affect your payments.

Repayment Strategies

Overpayments: Making extra payments reduces total interest and shortens your mortgage term. Most lenders allow up to 10% overpayments annually.
Shorter Terms: Higher monthly payments but significant interest savings over the life of the loan.
Rate Shopping: Even small rate differences can save thousands over your mortgage term.
Regular Reviews: Consider remortgaging when your fixed rate ends or circumstances change.

Related Calculators

Complete Guide to UK Mortgage Repayments 2025

Understanding how mortgage repayments work is essential for making informed borrowing decisions. Learn how your payments are calculated and strategies to save thousands in interest.

How UK Mortgage Repayments Work

UK mortgage repayments consist of two components: capital (the amount you borrowed) and interest (the cost of borrowing). With a repayment mortgage (also called capital and interest), each monthly payment gradually reduces your outstanding balance while paying interest on the remaining amount.

The payment structure follows an amortization schedule where early payments are predominantly interest with small capital portions. As the mortgage progresses, more of each payment goes toward capital, accelerating the balance reduction. For example, on a £200,000 mortgage at 5% over 25 years (£1,169/month), your first payment includes approximately £833 interest and £336 capital. By year 15, each payment includes about £500 interest and £669 capital.

This structure means overpayments in early years have the greatest impact on total interest savings, as they reduce the capital on which future interest is calculated. Even small regular overpayments can save tens of thousands of pounds over the mortgage term.

Monthly Payment Examples by Loan Amount

See how different loan amounts affect your monthly payments at typical UK mortgage rates (25-year term):

Loan Amount	@ 4.5%	@ 5.0%	@ 5.5%
£150,000	£834/month	£877/month	£921/month
£200,000	£1,112/month	£1,169/month	£1,228/month
£250,000	£1,390/month	£1,461/month	£1,535/month
£300,000	£1,668/month	£1,754/month	£1,842/month
£400,000	£2,224/month	£2,339/month	£2,456/month

Key Insight: A 0.5% rate difference on £200,000 costs approximately £57/month or £17,100 over 25 years. This demonstrates why securing the best possible rate and remortgaging when your deal ends is crucial for long-term savings.

Impact of Mortgage Term Length

Your mortgage term dramatically affects both monthly payments and total interest. Here's how a £200,000 mortgage at 5% compares across different terms:

Term Length	Monthly Payment	Total Interest	Total Cost
15 years	£1,582	£84,760	£284,760
20 years	£1,320	£116,800	£316,800
25 years	£1,169	£150,700	£350,700
30 years	£1,074	£186,640	£386,640
35 years	£1,006	£222,520	£422,520

Important: Choosing 15 years vs 35 years saves £137,760 in interest (£422,520 - £284,760) but costs £576/month more (£1,582 - £1,006). Balance affordability with long-term savings based on your financial situation and goals.

Strategies to Reduce Your Mortgage Costs

1. Make Regular Overpayments

Overpaying £200/month on £200,000 at 5% saves £35,000 interest and reduces term by 5 years. Most lenders allow 10% annual overpayments penalty-free.

2. Remortgage Regularly

Don't stay on your lender's SVR after your fixed period ends. Remortgaging to a competitive rate can save £100-200/month on a typical mortgage.

3. Choose Shorter Terms

If affordable, shorter terms save massive interest. 20 years vs 30 years on £200,000 saves £69,840 in interest (£186,640 - £116,800).

4. Increase Deposit

Better LTV ratios unlock lower rates. Improving from 90% to 85% LTV can reduce rates by 0.3-0.5%, saving £40-80/month on £200,000.

5. Use Lump Sum Payments

Bonuses, inheritance, or savings can dramatically reduce interest. A £10,000 lump sum payment saves approximately £15,000-20,000 in interest over 25 years.

6. Review Payment Frequency

Some lenders allow weekly or fortnightly payments, which can reduce interest slightly by paying capital down more frequently throughout the year.

How to Use This Repayment Calculator

Follow these 4 simple steps to calculate your mortgage repayments, understand your payment breakdown, and plan your monthly budget effectively.

Enter Your Mortgage Amount

Start by entering the total mortgage loan amount you need (e.g., £250,000). This is the amount you're borrowing from the lender, not the property price. To calculate: Property Price - Deposit = Mortgage Amount. For example, £300,000 property with £50,000 deposit (16.7% deposit, 83.3% LTV) = £250,000 mortgage. UK mortgage amounts typically range from £50,000 to £500,000+ depending on property value and deposit. First-time buyers average £180,000-220,000, home movers £250,000-350,000, London buyers £350,000-500,000+ (October 2025 data). Use accurate figures from your mortgage offer or Agreement in Principle (AIP). If you don't know your maximum borrowing, use our Affordability Calculator first.

💡 Mortgage Amount Tip: Get Agreement in Principle (AIP) from 2-3 lenders to confirm maximum borrowing (free, soft credit check, takes 10-20 minutes online). Typical UK income multiples: 4.5x single income, 4.5x joint income (some lenders offer 5-5.5x for high earners £50k+). For £50,000 salary: borrow £225,000. For £60,000 joint income: borrow £270,000. Higher deposits unlock better rates: 60% LTV = 4.2-4.8%, 75% LTV = 4.3-4.9%, 80% LTV = 4.5-5.2%, 90% LTV = 4.8-5.8%. Use our Deposit Calculator to optimize LTV.

Enter Your Interest Rate

Enter the annual interest rate for your mortgage (e.g., 4.5%). This is the rate charged by your lender, shown as APR (Annual Percentage Rate) or interest rate in your mortgage offer. UK mortgage rates vary by LTV, term, and product type. Current typical 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%). Use the rate from your mortgage offer or current deal. If comparing offers, test multiple rates to see payment differences.

⚠️ Rate Impact: On a £250,000 mortgage over 25 years: 4.0% rate = £1,319/month (£145,700 total interest), 4.5% rate = £1,389/month (£166,700 total interest, +£70/month, +£21k total), 5.0% rate = £1,461/month (£188,300 total interest, +£72/month, +£21.6k more), 5.5% rate = £1,535/month (£210,500 total interest, +£74/month, +£22.2k more). A 0.5% rate difference costs £70-75/month (£1,680-1,800/year, £4,200-4,500 over 2-year fixed term). Compare rates using our Interest Rates Calculator. Consider stress testing at +2-3% higher rates.

Select Your Mortgage Term

Choose your mortgage term in years (e.g., 25 years). This is the total period over which you'll repay the mortgage. UK standard term: 25 years. Common terms: 20 years (higher monthly payments, less total interest), 25 years (balanced payments and interest), 30 years (lower monthly payments, more total interest), 35-40 years (lowest monthly payments, significantly more interest, age restrictions apply). First-time buyers increasingly choose 30-35 years for affordability. Maximum term depends on age: most lenders require mortgage paid off by age 70-75, some extend to 80-85. For example, age 35 buyer with age 75 limit = maximum 40-year term. Shorter terms save substantial interest but increase monthly payments.

✅ Term Impact: £250,000 mortgage at 4.5%: 20 years = £1,582/month (£129,680 total interest, saves £37k vs 25 years), 25 years = £1,389/month (£166,700 total interest, standard term), 30 years = £1,267/month (£206,120 total interest, +£39k vs 25 years, saves £122/month), 35 years = £1,183/month (£247,460 total interest, +£81k vs 25 years, saves £206/month). Shorter terms save £30,000-80,000+ in interest but increase monthly payments by £200-400. Balance affordability against total cost. Use our Mortgage Term Calculator to compare terms.

Review Your Repayment Results

The calculator displays: (1) Monthly Payment (e.g., £1,389 for £250k at 4.5% over 25 years) - your fixed monthly repayment amount, (2) Total Amount Repaid (e.g., £416,700 = £250k capital + £166.7k interest) - total you'll pay over full term, (3) Total Interest (e.g., £166,700) - total interest cost over full term, (4) Capital vs Interest Breakdown - shows how much of each payment goes to capital (reducing loan) vs interest (lender's charge). Early payments are mostly interest (e.g., month 1: £150 capital, £938 interest), later payments mostly capital (e.g., final year: £1,340 capital, £50 interest). (5) Repayment Schedule - year-by-year breakdown showing outstanding balance reduction.

💡 Affordability Check: Ensure monthly payment fits your budget. UK lenders stress test at +2-3% higher rates (e.g., 4.5% offer tested at 6.5-7.5% = £1,600-1,700/month). Rule of thumb: mortgage payment should be ≤35% of gross monthly income (£1,389 payment needs £3,970+ monthly income = £47,640+ annual). Budget for additional costs: buildings insurance £200-600/year, life insurance £10-50/month, maintenance £100-200/month, service charges £100-300/month (flats). Use our Stress Test Calculator to test affordability at higher rates. Consider overpayments to reduce term and interest - use our Overpayment Calculator.

Important Repayment Planning Reminders

Rate Impact is Significant: 0.5% rate difference costs £70-75/month on £250k mortgage (£1,680-1,800/year, £4,200-4,500 over 2-year fixed). 1.0% difference costs £140-150/month (£3,360-3,600/year, £8,400-9,000 over 2 years). Shop around for best rates - compare 5-10 lenders. Lower LTV unlocks better rates: moving from 90% to 80% LTV saves 0.3-0.6% (£75-150/month).
Term Length Matters: Extending from 25 to 30 years reduces monthly payment by £120-150 but adds £35,000-45,000 in total interest. Reducing from 25 to 20 years increases monthly payment by £190-220 but saves £35,000-40,000 in interest. Balance monthly affordability against total cost. You can overpay to reduce term later (most lenders allow 10% annual overpayments penalty-free).
Stress Test Your Affordability: UK lenders test affordability at +2-3% higher rates. If offered 4.5%, you must afford payments at 6.5-7.5% (£1,600-1,700/month vs £1,389). When fixed term ends, revert to lender's Standard Variable Rate (SVR, typically 7-9%, £1,750-1,900/month). Budget conservatively and maintain 3-6 months emergency fund. Use our Stress Test Calculator.
Budget for Additional Costs: Beyond mortgage payment, budget for: buildings insurance (£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 for flats), ground rent (£100-500/year for leasehold), council tax (£100-300/month depending on band and area). Total additional costs: £300-800/month.
Consider Overpayments: Most UK mortgages allow 10% annual overpayments penalty-free. Overpaying £200/month on £250k at 4.5% over 25 years saves £42,000 interest and clears mortgage 5 years early. Even £100/month saves £23,000 and clears 3 years early. Use our Overpayment Calculator to see savings. Balance overpayments against emergency fund and other debts.
Professional Advice: This calculator provides repayment estimates only. For personalized advice on mortgage products, rates, terms, and affordability based on your full financial circumstances, consult FCA-regulated mortgage advisors who can access whole-of-market deals and negotiate better rates.

FCA Compliance Notice

This calculator provides mortgage repayment estimates for informational purposes only. It does not constitute financial, mortgage, or investment advice. Actual monthly payments depend on individual circumstances including mortgage amount, interest rate, term, product type, and lender policies. UK mortgage repayments are calculated using the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where M = monthly payment, P = principal (loan amount), r = monthly interest rate (annual rate ÷ 12), n = number of payments (years × 12). This calculator assumes capital repayment mortgage (most common UK type) where each payment includes both capital and interest. Interest-only mortgages (payment covers interest only, capital repaid at end) have lower monthly payments but require separate repayment vehicle. 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%. 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). Term impact: extending from 25 to 30 years reduces monthly payment by £120-150 but adds £35k-45k total interest. Reducing from 25 to 20 years increases monthly payment by £190-220 but saves £35k-40k interest. UK lenders stress test affordability at +2-3% higher rates (e.g., 4.5% offer tested at 6.5-7.5%). When fixed term ends, revert to lender's Standard Variable Rate (SVR, typically 7-9%, significantly higher payments). Most mortgages allow 10% annual overpayments penalty-free - overpaying £200/month on £250k at 4.5% saves £42k interest and clears 5 years early. Beyond mortgage payment, budget for: buildings insurance (£200-600/year, required), life insurance (£10-50/month, recommended), maintenance (£100-200/month), service charges (£100-300/month for flats), ground rent (£100-500/year leasehold), council tax (£100-300/month). Total additional costs: £300-800/month. Interest rates, lender policies, and mortgage products can change frequently. Always obtain personalized quotes from multiple lenders (compare 5-10 offers) and consult FCA-regulated mortgage advisors for professional guidance on mortgage products, rates, terms, overpayments, and affordability based on your full financial circumstances. MortgagePro.uk is a comparison tool and not a financial advisor, mortgage lender, or mortgage broker.

Frequently Asked Questions

Common questions about mortgage repayments

How are mortgage repayments calculated?

Mortgage repayments are calculated using the loan amount, interest rate, and term length. Each payment includes both capital (paying down the loan) and interest. Early payments are mostly interest, while later payments are mostly capital.

What's the difference between capital and interest?

Capital is the amount you borrowed that you're paying back. Interest is the cost of borrowing that money. With a repayment mortgage, you pay both each month, gradually reducing the outstanding balance.

Can I pay off my mortgage early?

Yes, most UK mortgages allow overpayments up to 10% of the outstanding balance per year without penalty (some lenders allow more). Paying extra reduces the total interest paid and shortens the mortgage term significantly. For example, overpaying £200/month on a £200,000 mortgage at 5% over 25 years saves approximately £35,000 in interest and reduces the term by 5 years. Always check your mortgage terms for any early repayment charges (ERCs), especially during fixed rate periods.

How much will my monthly mortgage payment be?

Your monthly payment depends on three factors: loan amount, interest rate, and term length. For example, a £200,000 mortgage at 5% over 25 years costs approximately £1,169/month. At 4.5%, the same mortgage costs £1,112/month (£57 less). Longer terms reduce monthly payments but increase total interest - the same mortgage over 30 years costs £1,074/month but £186,640 total interest vs £150,700 over 25 years. Use our calculator to see exact figures for your circumstances.

What happens if interest rates change during my mortgage?

With a fixed rate mortgage, your payments stay the same for the fixed period (typically 2-5 years) regardless of Bank of England base rate changes. After the fixed period, you move to the lender's standard variable rate (SVR), which can change. With a variable or tracker mortgage, your payments change when rates change - if base rate rises 0.5%, your monthly payment on £200,000 increases by approximately £60. Most people remortgage when their fixed period ends to secure a new competitive rate.

Should I choose a shorter or longer mortgage term?

Shorter terms (15-20 years) mean higher monthly payments but significantly lower total interest. Example: £200,000 at 5% over 15 years costs £1,582/month but only £84,760 total interest. Over 30 years, it's £1,074/month but £186,640 total interest - a £101,880 difference. Choose shorter terms if you can afford higher payments and want to save on interest. Choose longer terms if you need lower monthly payments for affordability or flexibility. You can always overpay to reduce the term later.

How much interest will I pay over my mortgage term?

Total interest depends on loan amount, rate, and term. On a £200,000 mortgage at 5% over 25 years, you pay £150,700 interest (75% of the original loan). At 4.5%, you pay £133,600 (saving £17,100). Over 30 years at 5%, you pay £186,640 interest. Early payments are mostly interest - in year 1, approximately 90% of each payment is interest. By year 20, about 70% goes toward capital. Overpayments dramatically reduce total interest by paying down capital faster.

What's the difference between repayment and interest-only mortgages?

Repayment mortgages (also called capital and interest) pay off both the loan and interest each month, so you own the property outright at the end. Interest-only mortgages only pay the interest, so the loan amount stays the same and you must repay the full capital at the end (typically through savings, investments, or property sale). Example: £200,000 at 5% - repayment mortgage costs £1,169/month, interest-only costs £833/month but you still owe £200,000 at the end. Most lenders now require repayment mortgages for residential properties.

Can I reduce my monthly payments if my circumstances change?

Yes, several options exist: (1) Extend your mortgage term - spreading payments over more years reduces monthly costs but increases total interest, (2) Switch to interest-only temporarily (if lender permits), (3) Take a payment holiday (typically 1-3 months, adds to total cost), (4) Remortgage to a better rate - even 0.5% lower rate saves £60/month on £200,000, (5) Add the debt to your mortgage (for home improvements or consolidation). Contact your lender early if facing financial difficulty - they must work with you to find solutions.

UK Mortgage Repayment Calculator 2025