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.
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 |
|---|---|---|
| 3.0% | £1,185.53 | £105,658 |
| 3.5% | £1,251.56 | £125,468 |
| 4.0% | £1,319.59 | £145,878 |
| 4.5% | £1,389.58 | £166,874 |
| 5.0%Your rate | £1,461.48 | £188,443 |
| 5.5% | £1,535.22 | £210,566 |
| 6.0% | £1,610.75 | £233,226 |
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 typical 25-year mortgage, it takes roughly 15 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.
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
- Guaranteed to clear the debt if all payments made
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)
- Most lenders now require at least 50% LTV or higher equity
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 4.5% and 5.0% is around 70 per month — that is over 21,000 in extra interest over the full term.
5-year fix advantage
Locking in a 5-year fixed rate gives you payment certainty and often a lower stress test rate from lenders, which can increase the amount you are able to borrow.
Rate at remortgage matters
Your initial rate is only part of the picture. When the fixed period ends, you move to the lender's SVR (typically 2-3% higher). Always plan to remortgage before your deal expires.
Want to see how fixing for 5 years could increase your borrowing? Read the maximise borrowing guide
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+ per 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
How much is a mortgage on 200,000?
At 5% over 25 years, monthly repayments on a 200,000 mortgage would be approximately 1,169. At 4% they would be 1,056. 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.
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