Mortgage repayments — common questions
How is my monthly mortgage payment calculated? +
Your monthly repayment uses the standard amortisation formula, which factors in your loan amount, interest rate, and term. Each payment covers both interest and a portion of the capital, so your balance reduces steadily to zero over the term.
What interest rate should I enter? +
Use the rate from your mortgage offer or the deal you are considering. If you are early in the process, try a few different rates to understand the range of what you might pay.
Are there other costs on top of my mortgage payment? +
Yes. This calculator shows your mortgage repayment only. You will also need to budget for buildings insurance, life insurance if your lender requires it, solicitor fees, survey costs, stamp duty, and any mortgage arrangement fee.
Does a longer mortgage term save money? +
A longer term reduces your monthly payment, which can help with affordability. But you will pay significantly more interest overall. Use this calculator to compare terms side by side by re-entering your details with a different term.
What is the difference between repayment and interest-only? +
This calculator shows a repayment mortgage, where each monthly payment reduces your loan balance. With interest-only, payments are lower but the full loan remains outstanding at the end of the term — you would need a separate strategy to repay the capital.