Mortgage Calculator
✓ Verified for 2026/27Mortgage Details
£
£
%
years
Monthly Payment
£0
principal & interest
Total Interest Paid
£0
over the full term
Loan-to-Value (LTV)
0%
equity vs loan ratio
Total Amount Paid
£0
loan + interest cost
Mortgage Cost Breakdown
Property Value
£0
Deposit Amount
£0
Loan Amount (Principal)
£0
Total Interest Cost
£0
Mortgage Term
0 years
Total Cost of Mortgage
£0
Principal (Loan)
0%
Total Interest
0%
A lower Loan-to-Value (LTV) ratio generally grants you access to cheaper interest rates. An LTV below 60% (meaning a 40%+ deposit) typically qualifies you for the most competitive mortgage rates on the UK market.
How We Calculated This
- Input variables: Enter property value, deposit amount, interest rate, and term length.
- Calculate Loan amount: Subtract deposit from property value to get loan principal.
- Apply amortization formula: Apply the standard monthly compounding formula to calculate payments.
- Sum total cost: Multiply monthly payment by total number of months to get total repaid, then subtract principal to find total interest.
Real-World Examples
Example 1: £300,000 Property with 10% Deposit (4.5% Rate, 25 Years)
Standard home purchase scenario.
Property Value: £300,000 Deposit: £30,000 Loan Principal: £270,000 Interest Rate: 4.5% (Annual) Term: 25 Years (300 Months) Monthly Repayment: £1,501 Total Interest Paid: £180,300 Total Repayment: £450,300
Frequently Asked Questions
What is Loan-to-Value (LTV)?
LTV is the ratio of your mortgage loan amount to the total purchase price of the property. For example, if you pay a £30,000 deposit on a £300,000 home, your mortgage is £270,000, which is a 90% LTV.
How does the interest rate affect my monthly repayments?
A higher interest rate increases the proportion of your monthly payment that goes towards paying interest rather than reducing your loan balance, increasing both monthly and lifetime costs.
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About This Calculator
This calculator uses the latest HMRC rates for the 2026/27 tax year. For illustrative purposes only — always consult a qualified tax adviser for formal advice.