UK Mortgage Calculator 2026-27
About to make an offer? Run the numbers first.
Calculate your monthly mortgage repayment (capital + interest), total interest paid, and full amortisation schedule for any UK repayment mortgage.
Capital + interest repayment only. Estimates only. Consult a qualified mortgage adviser.
How a UK repayment mortgage is calculated
Capital and interest repayment
UK mortgages are typically repayment (capital + interest) or interest-only. Rate data source: Bank of England — Mortgage Lending Statistics. Mortgage conduct rules: FCA — Mortgages. This calculator models repayment mortgages, where each monthly payment reduces both the outstanding balance and covers interest. Monthly repayment = Loan × [r(1+r)^n] ÷ [(1+r)^n − 1], where r is monthly rate and n is total months.
Early years are mostly interest
In early years, most of each payment is interest. On a £250,000 loan at 4.5%, month 1 payment of £1,389 includes £938 interest and only £451 capital. By month 300, this reverses. This is why overpaying early has such a large impact.
UK mortgage monthly repayment reference at current rates
| Mortgage | 3.5% | 4.0% | 4.5% | 5.0% |
|---|---|---|---|---|
| £150,000 | £750 | £791 | £833 | £877 |
| £200,000 | £1,001 | £1,055 | £1,111 | £1,169 |
| £250,000 | £1,252 | £1,319 | £1,389 | £1,461 |
| £350,000 | £1,752 | £1,847 | £1,944 | £2,046 |
| £500,000 | £2,503 | £2,639 | £2,778 | £2,923 |
Capital and interest repayment over 25 years. Add contents and buildings insurance (£20–£40/month).
How UK mortgage overpayments reduce total interest and term
Most mortgages allow 10%/year
Most UK fixed-rate mortgages allow overpayments of up to 10% of the outstanding balance per year without an early repayment charge (ERC). On a £300,000 mortgage, that's up to £30,000 extra per year. Overpayments apply to the outstanding principal, reducing future interest immediately.
Recasting vs shortening
Some lenders automatically reduce monthly payments when you overpay (recasting). Others keep payment the same but reduce the term. Reducing the term (keeping payment high) saves more interest overall. Specify "reduce term" if given the choice.
Choosing between fixed rate and tracker/variable mortgages in 2025
Fixed rate
Your interest rate is locked for a set period (usually 2 or 5 years). Monthly payments are predictable regardless of Bank of England base rate changes. After the fix ends, you revert to the lender's Standard Variable Rate (SVR) — usually 1–3% above base rate. Always remortgage before the SVR.
Tracker / variable
Tracks The Bank of England base rate (currently 4.5%) plus a margin. Your payment changes if the base rate changes. Trackers are sometimes cheaper than fixes when rates are expected to fall, but carry risk. As of early 2025, many borrowers are choosing 2-year fixes to capture potential future rate cuts.
Conveyancing: the legal process of buying a UK property
Solicitor or licensed conveyancer
You will need a solicitor or licensed conveyancer to handle the legal transfer of property. They conduct essential property searches — local authority searches (planning, environmental, drainage), land registry checks, and chancel repair liability searches. Typical conveyancing fees are £800–£1,500 plus disbursements (search fees of £250–£400).
Exchange of contracts and completion
The process runs: offer accepted, instruct solicitor, mortgage offer, property searches, enquiries raised and answered, exchange of contracts (legally binding — you pay your deposit, typically 10%), then completion (usually 1–4 weeks later, keys handed over). The whole process typically takes 8–14 weeks. Gazumping (seller accepting a higher offer) is a risk until exchange.
EPC ratings: how energy efficiency affects your property
EPC grades A to G
An Energy Performance Certificate (EPC) is legally required when selling or renting a property in England and Wales. Properties are rated from A (most efficient) to G (least efficient). Most UK homes are rated D or E. An EPC is valid for 10 years and costs £60–£120. The certificate includes recommendations for improving the rating.
Impact on value and mortgages
Properties with higher EPC ratings (A–C) typically command higher sale prices — studies suggest a premium of 5–15% compared to equivalent lower-rated properties. Some lenders now offer "green mortgage" discounts (lower rates for EPC A–C properties). Rental properties must have a minimum EPC rating of E (with proposals to raise this to C by 2030). Improving your EPC rating through insulation, double glazing, or a new boiler can add significant value.
Leasehold vs freehold: what UK buyers need to know
Freehold
You own the property and the land it sits on outright. No ground rent or lease to worry about. Most houses in England and Wales are freehold. This is the simplest form of ownership.
Leasehold
You own the property for a fixed period (the lease term) but not the land beneath it. Common for flats and some new-build houses. Key costs include ground rent (typically £200–£500/year, though some historic leases have escalating ground rent clauses — watch out for doubling clauses), service charges (£1,000–£3,000+/year covering maintenance, insurance, communal areas), and potential lease extension costs. A lease below 80 years becomes expensive to extend (due to "marriage value") and difficult to mortgage — most lenders require at least 70–80 years remaining. Lease extension costs vary hugely: from £5,000–£15,000 for a 90+ year lease to £30,000+ when below 80 years. The Leasehold and Freehold Reform Act 2024 aims to make extensions cheaper and simpler.
How much can I borrow for a UK mortgage in 2026-27?
UK lenders assess borrowing through income multiples and affordability tests. Understanding both determines your realistic budget.
Income multiple — the first check
Most UK lenders offer 4-4.5x annual gross income. Professionals (doctors, lawyers, accountants) sometimes get 5-5.5x at lower LTV. Joint applications combine both incomes — a couple earning £40k each can often borrow £320,000-360,000.
Borrowing by salary at 4.5x multiple
| Gross salary | Typical borrowing (4.5x) | Stretch (5.5x) |
|---|---|---|
| £30,000 | £135,000 | £165,000 |
| £40,000 | £180,000 | £220,000 |
| £50,000 | £225,000 | £275,000 |
| £60,000 | £270,000 | £330,000 |
| £80,000 | £360,000 | £440,000 |
| £100,000 | £450,000 | £550,000 |
| £150,000 (joint) | £675,000 | £825,000 |
Affordability stress test
FCA-required: lenders verify you could afford repayments if rates rose. Since 2022, test at product rate + 1% (previously +3%). Fails if stressed payment exceeds ~40-45% of take-home. Can tighten allowance significantly for high-LTV borrowers.
What reduces borrowing capacity
Existing debt (credit cards, car loans, student loans). Dependants (each child reduces capacity ~£10-20k). High monthly commitments (childcare, private school fees). Some lenders apply specific policies to BTL ownership — may require 125% rental coverage on existing properties.
What increases borrowing capacity
Joint application. Bonus inclusion (usually at 50% weighting). Overtime at regular pattern. Higher deposit lowering LTV band. Some lenders offer income multiple boost for defined contribution pension contributions (treats as reducing liability).
UK mortgage types explained: fixed, tracker, discount, offset
Fixed-rate mortgages
Rate locked for fixed period (2, 3, 5, 10 years). Monthly payments predictable. Most popular UK choice (85%+ of new mortgages in 2024). 2-year fixes at ~4.5%, 5-year at ~4.2% (2026 market). Early repayment charges typically 1-5% if you exit early.
Tracker mortgages
Tracks Bank of England base rate + margin. Rate moves with BoE. Example: base rate 4.5% + 0.79% margin = 5.29%. Attractive when rates expected to fall. Risk: payments rise if base rate rises. Often no ERC — more flexible.
Standard Variable Rate (SVR)
Lender's default rate after fix/tracker ends. Typically 6-8% — significantly higher than fixed deals. ALWAYS remortgage before SVR kicks in. Remortgaging is free or low-cost and saves thousands.
Discount mortgages
Discount off lender's SVR for fixed period (usually 2-3 years). If SVR is 7% and discount is 2%, your rate is 5%. SVR can change though — less predictable than fixed. Less common now.
Offset mortgages
Savings accounts offset the mortgage balance. £20k savings with £200k mortgage at 5%: only £180k accrues interest. Doesn't reduce payment but shortens term. Valuable for higher earners with significant cash savings. Offered by First Direct, Barclays, Accord.
Interest-only mortgages
Monthly payment covers interest only. Capital repaid separately (investments, sale of property, endowment). Mostly for BTL now — residential interest-only requires clear repayment vehicle plus substantial equity. Lower monthly cost but higher total interest paid.
Green mortgages
Lower rates for properties with high EPC ratings (A-C) or for energy efficiency improvements. Typically 0.1-0.3% lower rate. Offered by Barclays, NatWest, Nationwide, Santander among others. Growing segment as energy efficiency affordability becomes mainstream.
UK mortgage fees and buying costs explained
Mortgage fees
| Fee | Typical cost | Notes |
|---|---|---|
| Arrangement fee | £500-2,000 | Can be added to loan (costs more interest) |
| Booking fee | £99-299 | Paid upfront, non-refundable |
| Valuation fee | £200-1,500 | Depends on property value; often free with deal |
| Broker fee | £0-1,500 | Some brokers charge commission only |
| CHAPS / telegraphic transfer fee | £30-50 | To send purchase funds |
| Early repayment charge | 1-5% | If exiting fix early |
Other buying costs
| Cost | Typical amount |
|---|---|
| Solicitor/conveyancer | £800-1,500 |
| Property searches | £250-400 |
| Survey (Level 2 Homebuyer) | £400-800 |
| Survey (Level 3 Building) | £800-1,500 |
| Stamp Duty (varies) | £0-30,000+ |
| Removal costs | £400-1,500 |
Total 'buying pot' needed
£300,000 home, 10% deposit: £30,000 deposit + £2,500 stamp duty (FTB) + £2,500 fees = £35,000 total upfront. Plan 5-10% of property value as total upfront cost.
UK first-time buyer schemes and support 2026-27
Mortgage Guarantee Scheme
Government guarantees the portion of mortgage above 80% LTV, enabling lenders to offer 95% LTV mortgages. Available on properties up to £600,000. Not restricted to first-time buyers. Runs until June 2025 (likely to be extended).
First Homes scheme
New-build homes sold at 30-50% discount to first-time buyers. Income cap: £80,000 (£90,000 London). Discount passes on to future first-time buyers. Small but growing scheme run by local authorities.
Lifetime ISA (LISA)
Save up to £4,000/year, receive 25% government bonus (up to £1,000/year). Use for first home up to £450,000 or retirement from age 60. Age 18-39 to open. Over 6 years: £24,000 contributions + £6,000 bonus = £30,000 deposit boost.
Shared Ownership
Buy 25-75% share of property, rent remainder from housing association. Staircase up over time to 100%. Lower deposit, lower monthly cost, but rent plus mortgage combined. Service charges usually apply. Income caps vary.
Help to Buy (closed to new applications)
Previous equity loan scheme ended March 2023. Existing Help to Buy loans continue. LISA now serves similar purpose for most first-time buyers.
Stamp Duty relief for FTBs
First-time buyers pay no SDLT on the first £300,000 (from April 2025). Reduced 5% rate between £300,000-£500,000. Full rates above £500,000. Relief unavailable if partner has previously owned property.
Family gifted deposits
Most UK lenders accept gifted deposits from family. Need 'gifted deposit letter' confirming it's a gift (not loan). Some lenders accept equity gifts (parents remortgage to help). Average UK first-home deposit now ~£34,500 per the Building Societies Association.
UK mortgage affordability by region 2026-27
Average UK house prices by region
| Region | Average price | Typical deposit (10%) | Monthly repayment (90% LTV, 25yr, 4.5%) |
|---|---|---|---|
| London | £525,000 | £52,500 | £2,625 |
| South East | £395,000 | £39,500 | £1,976 |
| South West | £315,000 | £31,500 | £1,576 |
| East of England | £345,000 | £34,500 | £1,725 |
| West Midlands | £250,000 | £25,000 | £1,251 |
| East Midlands | £240,000 | £24,000 | £1,201 |
| North West | £215,000 | £21,500 | £1,076 |
| Yorkshire & Humber | £205,000 | £20,500 | £1,026 |
| North East | £165,000 | £16,500 | £826 |
| Wales | £215,000 | £21,500 | £1,076 |
| Scotland | £195,000 | £19,500 | £976 |
| Northern Ireland | £185,000 | £18,500 | £926 |
Affordability ratios
London median price-to-earnings ratio: ~13x. UK average: ~8x. Northern regions: 4-6x. Generally manageable ratios 3-4x; stretched 5-7x; unaffordable 8x+. Region determines whether similar salaries give different lifestyle outcomes.
Where mortgage is most affordable
North East, Scotland, Northern Ireland, and parts of Wales offer best affordability. £50,000 salary can buy average home in these regions with standard 4.5x multiple. London requires much higher incomes or joint buyers.
UK buy-to-let mortgages 2026-27
How BTL mortgages differ
Assessed primarily on rental income, not your salary. Typical requirement: rental must cover 125-145% of mortgage payment stressed at 5.5%. Minimum deposit typically 25%. Interest rates 4.5-6% — higher than residential.
BTL costs vs residential
| Cost | Residential | Buy-to-let |
|---|---|---|
| Typical rate | 4-5% | 4.5-6% |
| Minimum deposit | 5-10% | 25% |
| Stamp duty surcharge | 0% | +5% (Section 75A) |
| Arrangement fees | £500-2,000 | £1,000-3,000 (often %) |
| Interest tax relief | N/A | 20% basic rate credit only (Section 24) |
Limited company BTL structures
Since Section 24 removed higher-rate interest relief (2020), many landlords use limited companies (SPVs). Company pays 19-25% corporation tax on rental profits — often lower than personal higher-rate. More complex, additional costs. Higher landlords commonly use SPVs now.
Rental yields and returns
Gross yield = Annual rent ÷ Property price. UK averages: North ~7%, South ~4-5%, London ~3-4%. Net yield (after costs, management, void, maintenance): typically 2-3 percentage points lower. Add capital appreciation for total return.
UK mortgage term comparison: 20, 25, 30, 35, 40 years
Monthly payment by mortgage term (£250,000 at 4.5%)
| Term | Monthly payment | Total paid | Total interest |
|---|---|---|---|
| 15 years | £1,912 | £344,160 | £94,160 |
| 20 years | £1,582 | £379,680 | £129,680 |
| 25 years | £1,389 | £416,700 | £166,700 |
| 30 years | £1,267 | £456,120 | £206,120 |
| 35 years | £1,185 | £497,700 | £247,700 |
| 40 years | £1,125 | £540,000 | £290,000 |
The 35 vs 25-year term cost
Extending from 25 to 35 years reduces monthly payment by £204 (15%) but costs £81,000 more in total interest. The trade-off: improve monthly affordability now vs pay substantially more long-term. Many buyers extend term to pass affordability, then reduce it later via remortgages or overpayments.
Overpayment vs shorter term
Starting with a 35-year term and making 10% annual overpayments effectively clears the mortgage in ~22 years, saving interest while preserving optional flexibility. Better than locking into a short term — gives breathing room if income falls.
UK mortgage valuation and property surveys
Mortgage valuation (lender's valuation)
Required by lender to confirm property value supports loan. Desktop valuation for low LTV or simple cases. Drive-by or full valuation for higher LTV. Usually £200-500. Lender's valuation is NOT a survey — does not identify issues.
Survey types
| Survey type | Cost | Detail level |
|---|---|---|
| RICS Level 1 (condition) | £400-£900 | Basic traffic light condition assessment |
| RICS Level 2 (homebuyer) | £500-£1,200 | Non-intrusive visual inspection of major elements |
| RICS Level 3 (building) | £800-£1,500 | Detailed structural report with photographs |
When to get which survey
Modern/well-maintained: Level 1 or 2. Older property (pre-1950s): Level 3. Unusual construction (thatched, listed, timber frame): Level 3 with specialist. First-time buyers: Level 2 minimum for reassurance.
Down-valuation
Lender's valuation below agreed price. Options: negotiate price down, increase deposit to maintain LTV, challenge valuation with evidence, walk away. Common in falling markets.
UK remortgaging: when, how, and how much to save
When to remortgage
3-6 months before your fix ends. If you wait until SVR, you'll pay an extra £200-500/month. Also consider: equity release for home improvements, debt consolidation, or moving to a better product.
Product transfer vs new mortgage
Product transfer: stay with current lender on a new rate. Fast, no credit check, no legal fees. New mortgage: switch lenders for potentially better rate. Requires affordability check and conveyancing (often free).
Remortgage savings example
£200,000 outstanding mortgage at 6.5% SVR = £1,350/month. Remortgage to 5-year fix at 4.3% = £1,092/month. Monthly saving: £258. Over 5-year fix: £15,480 saved.
Remortgage costs to watch
Early repayment charge if switching before fix ends (1-5% of balance). Some lenders have tie-in beyond fix end ('collar'). New arrangement fees. Conveyancing fees (often free on remortgage deals).
UK mortgage lenders comparison
High-street banks
Halifax, Lloyds, Santander, HSBC, Barclays, NatWest. Competitive rates for standard borrowers. Online tools and branch service. Best for PAYE income with solid credit.
Building societies
Nationwide, Yorkshire, Coventry, Skipton. Member-owned — often flexible for unique cases (self-employed, older borrowers, unusual property). Sometimes member rate discounts.
Specialist lenders
Self-employed: Aldermore, Kensington. Adverse credit: Bluestone, Pepper. Contractors: Kent Reliance. Interest-only: Family Building Society. Equity release: Legal & General, Aviva.
Mortgage brokers vs direct
Brokers access whole market including specialist lenders. Fee-based (£250-£1,500) or commission-based (free to you). Best for complex cases. Direct application works for standard applicants with solid credit.
Digital lenders
Habito, Atom, Molo: digital-first applications. Fast decisions. Rates sometimes higher but service faster. Best for tech-comfortable buyers with straightforward cases.
What mortgage rates are available in the UK in 2025?
As of early 2025, UK 2-year fixed rates are approximately 4.0–4.8% and 5-year fixed rates are approximately 3.8–4.6%. The Bank of England base rate is 4.5%. SVR (Standard Variable Rate) is typically 6–8%. Shopping around and using a mortgage broker can find better rates.
How much can I borrow in the UK?
Most UK lenders will lend 4–4.5× your annual gross income (income multiple). Some lenders offer 5–5.5× for certain professions or at lower LTV. Affordability stress tests also check you can afford repayments at the mortgage rate +3%. A joint application uses the higher/combined income.
What is the maximum term for a UK mortgage?
Most UK lenders offer terms up to 35–40 years (subject to being repaid before age 70–75). Longer terms lower monthly payments but significantly increase total interest paid. A 35yr term costs approximately 30–40% more in total interest than a 25yr term.
Should I overpay or invest my extra money?
If your mortgage rate is higher than the after-tax return on savings/investments, overpaying is more valuable. With current rates of 4–5%+ and savings returns lower after tax, overpaying is often the better choice. However, maintaining an emergency fund and maximising ISA contributions first is generally advisable.
What is Stamp Duty Land Tax (SDLT) and how much will I pay?
Stamp Duty Land Tax (SDLT) is a tax on property purchases in England and Northern Ireland. From April 2025, first-time buyer relief applies on properties up to £500,000 (nil rate on the first £300,000, then 5% to £500,000). Standard rates start at 0% up to £125,000, 2% on £125,001–£250,000, and 5% on £250,001–£925,000. SDLT can add thousands to your purchase costs — use our Stamp Duty Calculator to get an exact figure for your purchase price.
Where these figures come from
Property and mortgage figures on this page are drawn from HMRC (Stamp Duty Land Tax), The Bank of England (mortgage-rate data), The FCA (mortgage conduct rules), and HM Land Registry (house-price data).
- Stamp Duty Land Tax (SDLT) rates — GOV.UK — Stamp Duty Land Tax.
- UK mortgage rate & lending data — Bank of England — Mortgage lending statistics.
- FCA mortgage conduct rules — FCA — Mortgages.
- UK House Price Index — GOV.UK — UK House Price Index.
- Rental income & Section 24 mortgage interest relief — GOV.UK — Rental income and tax.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your result reflects the financial position of the property scenario you entered — based on current rates, market rules, and standard calculation methods used across the Australian property industry.
Use this as a planning figure. Compare different property prices, deposit sizes, or loan terms to see how each changes the outcome. Adjust inputs in Standard or Advanced mode for more detail.
Not a bank approval, valuation, or guarantee. Lenders apply their own policies, credit checks, and property assessments beyond what any calculator can model.
Calculations use current published rates and standard formulas. All processing runs in your browser — no data is sent to any server.
Property calculations are most sensitive to the interest rate, loan amount, and time horizon. Small changes to these inputs produce the largest shifts in your result.
A 0.5% rate change on a £500k loan shifts annual interest by ~£2,500. Use Standard mode to compare fixed vs variable rate scenarios.
Extending the loan term reduces repayments but increases total interest. Interest-only periods change cash flow but not total cost. Model both in Advanced mode.
The ratio of your loan to the property value affects LMI, rate pricing, and lender appetite. Crossing the 80% LVR threshold changes the cost structure significantly.
To improve your property outcome, focus on the inputs with the highest leverage — these typically produce more impact per dollar than broad changes.
A larger deposit reduces LVR, eliminates LMI at 80%, and may unlock better rate pricing. Even £10k–£20k extra deposit can shift the cost picture.
Credit card limits and personal loans reduce borrowing capacity pound-for-pound. Closing unused cards before applying is one of the fastest levers.
Rate, policy, and LVR treatment vary between lenders. A mortgage broker can identify the best fit for your specific profile and property type.
Property decisions involve multiple linked calculations. Use the related calculators to model the full picture before committing.
Confirm how much a lender would approve based on your income, debts, and expenses.
Borrowing capacity →Factor in transfer duty and other upfront costs so your total cash requirement is accurate.
Stamp duty calculator →See the monthly, fortnightly, and weekly repayment at different rates and terms.
Mortgage repayment →