Mortgage Calculator UK

Calculate your UK monthly mortgage repayment — repayment or interest-only, fixed, tracker, or variable rate. Includes Stamp Duty (SDLT), arrangement fee, deal period cost, and a full amortisation schedule.

Property & Mortgage

Min 5% typically required · 10%+ for better rates
How long your initial rate is fixed/tracked before reverting to SVR

Costs & Fees

Lender product fee — typically £500–£1,999
UK average approx. £2,065/year (Band D, England 2024)
UK average approx. £200–£400/year

How UK Mortgages Work

Repayment vs Interest-Only

TypeMonthly CostEnd of TermBest For
RepaymentHigher (capital + interest)Mortgage fully paid offMost homeowners
Interest OnlyLower (interest only)Full capital still owedBuy-to-let investors

Stamp Duty Land Tax (SDLT) — England & Northern Ireland 2024

Property ValueSDLT Rate
Up to £250,0000%
£250,001 – £925,0005%
£925,001 – £1,500,00010%
Above £1,500,00012%

Scotland uses LBTT; Wales uses LTT — different thresholds apply. First-time buyer relief available up to £625,000 (zero rate up to £425,000).

2025 UK Mortgage Rate Guide

Lender2-yr Fixed (60% LTV)5-yr Fixed (60% LTV)SVR
Halifax~4.50%~4.20%~7.99%
Nationwide~4.44%~4.14%~7.99%
Barclays~4.48%~4.18%~8.24%
HSBC UK~4.39%~4.09%~6.99%
NatWest~4.55%~4.25%~7.74%
Santander UK~4.52%~4.22%~7.50%
Lloyds Bank~4.47%~4.17%~7.99%
Virgin Money~4.56%~4.26%~8.49%
Rates last updated: January 2025 — Bank of England base rate approx. 5.00%. Rates vary by LTV, credit score and lender criteria. Always get an AIP before committing.

LTV Tiers and Rate Impact

LTVDepositTypical Rate TierNotes
60%40%Best rates availableTop tier products
75%25%Very competitiveWide lender choice
85%15%Moderate ratesGood range of products
90%10%Higher ratesSome lender restrictions
95%5%Highest ratesGovernment scheme or specialist lenders

Affordability — FCA Stress Test

Under FCA Mortgage Conduct of Business (MCOB) rules, lenders must assess affordability using a stressed interest rate (typically the reversion/SVR rate or contract rate + 3%). Income multiples are typically 4–4.5× gross salary, though some lenders allow up to 5.5× for high earners.

Frequently Asked Questions

Repayment vs interest-only mortgage — which should I choose?

Repayment mortgages pay off capital and interest monthly — you own the property outright at term end. Interest-only has lower payments but the full capital is still owed at the end and must be repaid separately. Most residential buyers should choose repayment.

How much stamp duty do I pay?

SDLT in England (2024): 0% up to £250,000; 5% on £250,001–£925,000; 10% on £925,001–£1,500,000; 12% above. First-time buyers: 0% up to £425,000, 5% up to £625,000. Scotland uses LBTT; Wales uses LTT.

What LTV gives the best rates?

60% LTV (40% deposit) gets the best rates. Rates step up at 75%, 85%, 90%, and 95% LTV. Even a small deposit increase to hit the next tier can save thousands over the mortgage term.

2-year or 5-year fixed rate?

2-year fixes give flexibility to remortgage sooner if rates fall. 5-year fixes provide payment certainty and fewer remortgaging costs. In a falling rate environment, shorter fixes are better; in rising or uncertain markets, longer fixes provide security.

How much can I borrow?

Most UK lenders offer 4–4.5× gross annual income. Some specialist lenders offer up to 5.5× for high earners or professionals. Affordability is stress-tested at SVR or contract rate + 3% under FCA MCOB rules.

References

  • Bank of England — Monetary Policy Committee, Official Bank Rate decisions.
  • HM Revenue & Customs — Stamp Duty Land Tax rates and thresholds.
  • Financial Conduct Authority (FCA) — Mortgage Conduct of Business (MCOB) sourcebook.
  • Money and Pensions Service (MaPS) — MoneyHelper mortgage guidance.
  • UK Finance — Mortgage Lenders and Administrators Statistics.

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