Mortgage calculator
Estimate your monthly payments on a repayment or interest-only mortgage, see the total cost over the term, and check what happens if rates rise.
Monthly payment
£1,500.75
| Amount borrowed | £270,000 |
|---|---|
| Loan to value | 90.0% |
| Interest-only instead | £1,012.50 a month |
| If the rate were 5.50% | £1,658.04 |
| If the rate were 6.50% | £1,823.06 |
| Total repaid over 25 years | £450,224 |
Assumes a fixed rate for the whole term and ignores fees. Many deals change rate after an initial fixed or discounted period.
How the maths works
A repayment mortgage pays off interest and a slice of the loan every month, so the balance falls to zero by the end of the term. Early payments are mostly interest; later ones are mostly capital. An interest-only mortgage just covers the interest, so the monthly cost is lower but the full loan is still owed at the end.
Lenders look at your income, outgoings and the security of your job when deciding what to lend. MoneyHelper suggests checking whether you could still afford the payments if interest rates rise (MoneyHelper) — the rows above show a 1 and 2 percentage-point rise. For a second opinion try the MoneyHelper mortgage repayment calculator.
This calculator is for illustration only and is not financial advice.