🏠 UK Mortgage Calculator

How to Use This UK Mortgage Calculator

Enter the property price, your deposit amount, the interest rate offered by your lender, and the mortgage term in years. The calculator instantly shows your monthly repayment, total cost, and how much goes to interest.

Repayment vs Interest-Only Mortgages

Repayment mortgages pay off both the interest and the loan itself each month. By the end of the term, you own the property outright. This is the most common type in the UK.

Interest-only mortgages only cover the interest each month. The original loan amount remains and must be repaid at the end — usually by selling the property or using savings. Monthly payments are lower, but you'll need a repayment strategy.

UK Stamp Duty Land Tax (SDLT) 2026

This calculator includes the current UK stamp duty rates for residential properties:

• Up to £125,000: 0%
• £125,001 – £250,000: 2%
• £250,001 – £925,000: 5%
• £925,001 – £1,500,000: 10%
• Over £1,500,000: 12%

First-time buyers may qualify for relief (0% up to £300,000 on properties up to £500,000). This calculator shows the standard rate — check HMRC for your specific situation.

What's a Good Loan-to-Value (LTV)?

LTV is how much you're borrowing relative to the property value. Lower LTV means better rates:

• 60% or below: Best rates available
• 75%: Good rates, most popular bracket
• 90%: Higher rates, standard for first-time buyers
• 95%: Highest rates, limited lender options

Current UK Mortgage Rates (March 2026)

Average rates as a rough guide — always check with a broker for personalised quotes:

• 2-year fixed: 4.2% – 5.0%
• 5-year fixed: 3.9% – 4.6%
• Tracker (base + margin): 4.0% – 5.0%
• Standard variable rate: 6.5% – 8.0%

Rates are indicative and change frequently. Speak to a mortgage adviser for accurate quotes.

Tips to Reduce Your Monthly Payment

• Bigger deposit: Even an extra £5,000 can drop your rate bracket
• Longer term: 30 or 35 years reduces monthly cost (but increases total interest)
• Fix your rate: Protects against Bank of England rate rises
• Overpay when you can: Most lenders allow 10% overpayment per year without penalties
• Use a broker: They access deals not available directly, often at no cost to you