How to use this UK Mortgage Calculator

1. Enter the property price and deposit (or choose “Loan amount only”). The tool will show your LTV.
2. Add the interest rate (annual, %). Fixed rates are common in the UK for 2–5 years; use your quoted rate.
3. Set the term (e.g. 25 years) and choose Repayment or Interest-only.
4. Optionally, add a monthly overpayment to see how much interest you save and how much time you shave off.

What is LTV and why it matters

LTV (Loan-to-Value) is the loan divided by the property price. Lower LTVs (e.g. 60–75%) typically unlock better UK mortgage rates, while higher LTVs may have tighter affordability checks.

Repayment vs Interest-only (UK)

With a repayment mortgage, each monthly payment covers interest and some capital, so the balance falls to £0 by the end of the term. With an interest-only mortgage, your required monthly payment is just the interest; the capital remains outstanding until you clear it (e.g. via savings, investments, sale, or switching product).

Tips for better UK mortgage deals

• Improve your credit profile and reduce unsecured debt.
• Save a bigger deposit to lower your LTV band.
• Consider shorter fixed terms if you expect rates to fall, or longer terms for payment stability.
• Check any overpayment limits on fixed deals (often up to 10% of the balance per year).

Disclaimer

This calculator provides estimates only and does not constitute financial advice or a mortgage offer. Always check fees (product, valuation, legal) and speak to a UK mortgage adviser before proceeding.

UK Mortgage Calculator – FAQs