UK mortgage calculator
In the UK, a mortgage can be repayment (capital and interest each month) or interest-only (interest only, capital due at the end). Pick the type to see the payment.
Result
1,389.58Monthly payment
- Interest cost
- 166,874.36
- Total of payments
- 416,874.36
- Capital still owed at the end
- 0.00
Inputs
- Amount borrowed
- 250000
- Rate per year
- 4.5
- Term
- 25
- Mortgage type
- Repayment
How it is calculated
Repayment: payment = amount × i ÷ (1 − (1 + i)^−n), with i = rate ÷ 12.
Result
Monthly payment
- Interest cost
- 166,874.36
- Total of payments
- 416,874.36
- Capital still owed at the end
- 0.00
How it is calculated
- Repayment: payment = amount × i ÷ (1 − (1 + i)^−n), with i = rate ÷ 12.
- Interest-only: payment = amount × i; the full amount is still owed at the end.
Example
£250,000 at 4.5% over 25 years: 1,389.58 a month on repayment (166,874.36 of interest); 937.50 a month interest-only, with 250,000 still owed at the end.
Good to know
- Stamp Duty Land Tax and other purchase taxes are not included: use a separate calculation.
- Fixed rate over the whole term; in practice fixed deals often last 2 to 5 years.
- Arrangement and broker fees not included.
Frequently asked questions
What is this tool used for?
In the UK, a mortgage can be repayment (capital and interest each month) or interest-only (interest only, capital due at the end). Pick the type to see the payment.
How is the result calculated?
Repayment: payment = amount × i ÷ (1 − (1 + i)^−n), with i = rate ÷ 12.
What should I check before using the result?
Stamp Duty Land Tax and other purchase taxes are not included: use a separate calculation.