Find your full monthly mortgage payment — principal and interest plus property tax, insurance and any HOA — with total interest, total cost and a year-by-year amortisation schedule, from the home price, deposit, rate and term.
⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.
iHow it is calculated
The fixed monthly payment uses the annuity formula, from the loan amount, the monthly rate (annual ÷ 12) and the number of months:
payment = P × r ÷ [1 − (1 + r)−n]
On a £300,000 home with a 10% deposit (a £270,000 mortgage) over 25 years at 5.3%: principal and interest are about £1,624/month. Remember the APRC assumes reverting to the lender's SVR (~7.1%) after the fixed period, so the whole-of-term cost is usually higher than the initial rate suggests. At 5.3% for the whole term you would repay about £487,000 in total, of which roughly £217,000 is interest.
?Frequently asked questions
How is a mortgage payment calculated?
The fixed monthly payment uses the annuity formula, from the amount, the monthly rate (annual ÷ 12) and the number of months. For example, £250,000 over 25 years at 5% works out at about £1,461 a month.
What interest rate do mortgages have in 2026?
A tracker rate follows the Bank of England base rate plus the lender's margin, an SVR is the lender's own standard variable rate, and a fixed rate is locked for a set period. Indicatively, UK mortgage rates sit around 4.5–5.5%, depending on the lender, your loan-to-value and your profile.
What deposit do I need for a mortgage?
Most lenders want at least a 5–10% deposit, but a 15–25% deposit unlocks the best rates and lower monthly costs. On a £290,000 home a 10% deposit is £29,000.
How much mortgage can I afford?
As a rule of thumb, lenders cap borrowing at around 4.5 times your annual income, then run an affordability check on your outgoings and credit commitments. For a £250,000 mortgage you would typically need income of about £55,000.
What is the APRC on a mortgage?
The APRC (annual percentage rate of charge) expresses the total yearly cost of the mortgage, including interest and fees such as the arrangement fee and valuation. It is the figure to use when comparing deals like for like.
Is a shorter or longer term better?
A shorter term means higher monthly payments but much lower total interest. A longer term lowers the payment but raises the total cost. Compare both in the amortisation schedule.
Can I repay the mortgage early?
Most deals let you overpay up to 10% of the balance each year with no penalty. Within a fixed or discounted period an early repayment charge (ERC) may apply; overpaying to shorten the term saves the most interest.
What costs does a mortgage have besides the payment?
Beyond the payment there are the arrangement or product fee, a valuation fee, solicitor and conveyancing costs, Stamp Duty (SDLT) where it applies, and buildings insurance. These are usually paid at the outset.
What salary do I need for a £250,000 mortgage?
Using the common 4.5 times income rule, you would need income of roughly £55,000, assuming no other large credit commitments. Lenders also stress-test the payment against your regular outgoings.
What is the Bank of England base rate and how does it affect my payment?
The base rate is the interest rate set by the Bank of England that tracker and SVR mortgages follow. On those deals the rate is base rate plus the lender's margin, so when the base rate rises, your monthly payment rises too. A fixed rate stays the same for its term.
Is a fixed, tracker or SVR mortgage better?
A fixed rate gives a predictable payment and protects you from rises during the deal. A tracker (base rate + margin) can be cheaper initially but moves up and down. An SVR is the lender's variable rate you revert to after a deal ends and is usually the most expensive.
What documents do I need for a mortgage?
Usually: photo ID, proof of income (payslips or SA302 tax calculations if self-employed), several months of bank statements, proof of your deposit and the property details. Requirements vary by lender.
What is included in the monthly payment breakdown?
The headline figure is the full monthly housing cost: principal and interest on the loan, plus property tax (set as a % of the home value per year), buildings/home insurance (per year) and any HOA or service charge (per month). Turn tax, insurance or HOA to zero to see principal and interest alone.
How does the deposit change the payment?
A bigger deposit means a smaller loan, so both the monthly payment and the total interest fall. It also lowers your loan-to-value (LTV), which usually unlocks a lower interest rate. Set the deposit as a percentage of the home price.
Does this include PMI or mortgage insurance?
No. Private mortgage insurance (PMI) is a US concept for deposits under 20%. In the UK there is no PMI — a smaller deposit instead means a higher LTV band and a higher interest rate — so we don't add a PMI line. Use the insurance field for buildings/home insurance, which UK lenders do require.