Mortgage Calculator UK
Calculate your monthly UK mortgage repayments based on property price, deposit, and interest rate.
Understanding UK Mortgages
In the UK, when you purchase a property, you provide a deposit upfront and take out a mortgage for the remainder. The Loan-to-Value (LTV) ratio is a critical metric used by UK lenders to determine the interest rate you are offered.
Loan-to-Value (LTV) Explained
The LTV is the size of your mortgage as a percentage of the property's total value. For example, if you buy a £300,000 house with a £30,000 deposit, your mortgage is £270,000. Your LTV is 90%. Lower LTVs (larger deposits) unlock much cheaper interest rates.
Worked Example
- Property Price: £300,000
- Deposit: £30,000 (10%)
- Mortgage Amount: £270,000
- Interest Rate: 5.5%
- Term: 25 Years
- Monthly Repayment = £1,657.99
Frequently Asked Questions
What happens when my fixed term ends?
In the UK, interest rates are typically fixed for 2, 3, or 5 years. After that period, your mortgage will revert to your lender's Standard Variable Rate (SVR), which is usually much more expensive. You should remortgage to a new fixed deal before this happens.
Disclaimer: This calculator is for educational and informational purposes only. It is not a substitute for professional financial advice. Results are estimates based on the information provided and may not reflect actual outcomes. Please consult with a qualified financial advisor, accountant, or tax professional before making any financial decisions. Past performance does not guarantee future results.