Mortgage Repayment Calculator
Find out what your monthly mortgage payments could look like. Enter your loan amount, interest rate, and term to get an instant estimate. Last reviewed October 2026.
Compare repayment and interest-only options, and see how different rates affect your monthly cost.
Mortgage Details
Your Estimated Payments
These are illustrative calculations based on the rate and term you entered. They are not a mortgage offer or recommendation. Actual mortgage payments depend on the specific product, lender fees, and your individual circumstances. This calculator provides general information only and does not constitute financial advice.
How Interest Rate Affects Your Payment
Repayment figures for a £250,000 mortgage over 25 years at different rates.
| Rate | Monthly Payment | Total Interest |
|---|---|---|
| 4.5% | £1,389.58 | £166,874 |
| 5.0% | £1,461.48 | £188,443 |
| 5.5%Your rate | £1,535.22 | £210,566 |
| 6.0% | £1,610.75 | £233,226 |
| 6.5% | £1,688.02 | £256,405 |
| 7.0% | £1,766.95 | £280,084 |
Mortgage repayment calculator: monthly payment, term and total interest
Enter the loan amount, interest rate and term above. Each monthly payment covers the interest charged plus a slice of the capital. On a 25-year term at 5.5%, it takes roughly 12 years before more than half of each payment goes towards capital rather than interest.
How Mortgage Repayments Work
Understanding how your monthly payment is split between capital and interest helps you see where your money goes.
Capital and interest combined
With a repayment mortgage, each monthly payment covers two things: interest charged by the lender, and a portion of the original loan (capital). Over time, the loan balance reduces until it reaches zero at the end of the term.
More interest early on
In the early years, most of your payment goes towards interest because the outstanding balance is still high. As you pay down the capital, the interest portion shrinks and more of each payment goes towards reducing the loan.
The tipping point
On a 25-year mortgage at 5.5%, it takes roughly 12 years before more than half of each payment goes towards capital rather than interest. This is why overpayments early in the term can save you the most money.
Fixed vs variable rates
With a fixed rate, your monthly payment stays the same for the fixed period (typically 2 or 5 years). With a variable rate, your payment can change when the lender adjusts the rate, making budgeting less predictable.
The formula, with a worked example: how mortgage repayments are calculated.
Repayment vs Interest Only
The two main mortgage types work very differently. Here is what you need to know about each.
Repayment mortgage
- Each payment reduces the loan balance
- Mortgage fully repaid by end of term
- Higher monthly payments than interest only
- Most common type for residential buyers
- Designed to repay the loan by the end of the term
Interest-only mortgage
- Monthly payments cover interest only
- Full loan amount still owed at end of term
- Lower monthly payments than repayment
- Requires a credible repayment strategy (investments, savings, property sale)
- Lenders usually set a maximum LTV for interest-only, often around 50–75%
How Interest Rate Affects Your Payment
Even a small difference in interest rate has a significant impact over the full mortgage term.
0.5% adds up fast
On a £250,000 mortgage over 25 years, the difference between 5% and 5.5% is around £74 a month. That is over £22,000 in extra interest over the full term.
5-year fixes and the stress test
A 5-year fixed rate gives you payment certainty for longer, and some lenders stress test it at a lower rate, which can change how much they will lend. Longer fixes usually carry early repayment charges and less flexibility if your plans change, so the right length depends on your circumstances.
Rate at remortgage matters
Your initial rate is only part of the picture. When the fixed period ends, you move to the lender's standard variable or follow-on rate. SVRs average about 7.1% (Moneyfacts, August 2026 data; SVRs haven't moved since Bank Rate was last cut), around 1.1 points above today's average fix and further above the best buys. Always plan to remortgage before your deal expires.
What Mortgage Can I Get for £500 a Month?
Working backwards from a monthly budget: this is roughly the repayment mortgage each monthly payment supports over a 25-year term, before any lender affordability cap is applied.
| Monthly payment | At 5% | At 5.5% | At 6% |
|---|---|---|---|
| £500 a month | £85,500 | £81,400 | £77,600 |
| £700 a month | £119,700 | £114,000 | £108,600 |
| £1,000 a month | £171,100 | £162,800 | £155,200 |
| £1,500 a month | £256,600 | £244,300 | £232,800 |
| £2,000 a month | £342,100 | £325,700 | £310,400 |
Repayment mortgage over 25 years. A longer term supports a larger loan for the same payment (and costs more in total interest); a shorter term supports less.
One important caveat: this is what the payment supports, not what a lender will offer you. Your maximum loan is also capped by an income multiple and by the lender's affordability assessment, stress-tested at a rate 1–3% above the product rate. If the table says £160,000 but your income only stretches to £140,000, the income cap wins. To see the figure lenders would actually use, run a free check across 57 UK lenders.
What Other Costs Should You Budget For?
Your mortgage payment is just one of the regular costs of owning a home. Make sure you budget for the full picture.
Buildings and contents insurance
Buildings insurance is a mortgage requirement. Contents insurance is optional but strongly recommended. Budget around £200 to £500 per year combined.
Life insurance and income protection
Most advisers recommend life insurance to cover the mortgage balance if you die during the term. Income protection covers payments if you cannot work.
Maintenance and repairs
A common rule of thumb is to set aside 1% of the property value per year for maintenance. Older properties may cost more. Boiler servicing, roof repairs, and plumbing issues are common expenses.
Service charges and ground rent
If you own a leasehold flat, you will likely pay a service charge (£200 to £3,000+ a year) and possibly ground rent. These are on top of your mortgage payment.
Use our buying costs calculator to estimate the one-off costs of purchasing a property.
Frequently Asked Questions
What mortgage can I get for £500 a month?
About £81,400 at 5.5% over 25 years on a repayment basis, or roughly £85,500 at 5% and £77,600 at 6%. £700 a month supports around £114,000 at 5.5%, and £1,000 a month around £162,800. That is what the payment supports. A lender will also cap the loan on income multiple and affordability, so the lower of the two applies.
How much is a mortgage on £200,000?
At 5.5% over 25 years, monthly repayments on a £200,000 mortgage would be approximately £1,228. At 5% they would be £1,169. The exact amount depends on the product rate offered by your lender.
What is the difference between repayment and interest only?
With a repayment mortgage, each monthly payment covers interest plus a portion of the capital, so the loan is fully repaid by the end of the term. With interest only, you only pay the interest each month and still owe the full loan amount at the end.
Why do lenders stress test at a higher rate?
Lenders want to ensure you could still afford payments if rates rise. They typically test at 1-3% above the product rate, or at their SVR plus a buffer. This is why your maximum borrowing may be lower than you expect based on current rates.
Can I switch from interest only to repayment?
Yes, most lenders allow you to switch from interest only to repayment during your mortgage term, though this will increase your monthly payment. Contact your lender to discuss.
Repayments by Mortgage Amount
See the full monthly repayment matrix, interest-only comparison, and total interest for a specific loan amount.
See How Much You Could Borrow Across 57 Lenders
Now you know your monthly payment, see an estimate of what lenders could lend you. We check 57 UK lenders in about 5 minutes — no credit search performed.
How this calculator works, and when it was last checked
- Method
- Monthly payments use the standard amortisation formula on the loan amount, rate and term entered. The rate box starts at an illustrative 5.5%; replace it with your own rate.
- Calculation last verified
- — Amortisation calculation and interest-only comparison verified against worked examples; re-verified 2026-07-27 with no changes found. The calculation doesn't depend on market data; the illustrative starting rate and the comparison rates were last checked 5 October 2026.
- Who checked it
- Reviewed by Phillip Wakeling-Smith, CeMAP-qualified mortgage adviser.
Results are an estimate for general information, not a quote, an offer of credit, or advice. Your own figures depend on a lender's full assessment of your circumstances.