Free · England and Wales
Mortgage calculator
Monthly payments for interest-only and repayment mortgages, and the interest you'll pay over the term.
Questions
How are repayment mortgage payments worked out?
With the standard formula: payment = P × r(1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan, r the monthly interest rate (the yearly rate ÷ 12) and n the number of monthly payments. It's the formula this calculator uses.
And interest-only?
The loan × the yearly rate ÷ 12. On £135,000 at 5%, that's £562.50 a month. The loan itself isn't paid down.
What is loan to value?
The loan as a percentage of the property's value. A £135,000 loan on a £180,000 home is 75% loan to value. The lower it is, the better the rates lenders usually offer.
Does paying a bigger deposit help?
It lowers the loan and the payments, and can move you into a cheaper loan to value band. For a buy-to-let it also lowers the return on your cash, so check both in the full deal calculator.
More terms explained in the glossary.