Enter the property price, your deposit, the interest rate and the term to see your monthly mortgage payment, total interest and loan to value (LTV). Add a monthly overpayment to see how much sooner you’d be mortgage-free.
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How to use it
- Choose Repayment (you pay off the loan and interest) or Interest only (you pay only interest and still owe the loan at the end).
- Enter the price, deposit, rate and term.
- Try a monthly overpayment to see the effect on the term and interest.
Worked example
A £300,000 home with a £30,000 deposit means borrowing £270,000, a 90% loan to value. At 4.5% over 25 years:
- Repayment: £1,500.75 a month, about £180,224 in interest over the full term
- Interest only: £1,012.50 a month, with the full £270,000 still owed after 25 years
- Repayment plus £200 a month overpayment: paid off in about 20 years 2 months, saving roughly £39,000 of interest
These figures assume the rate stays the same for the whole term. Most UK mortgages are fixed for 2 to 5 years, then move to the lender’s variable rate unless you remortgage.
Why loan to value matters
Lenders usually offer lower rates at lower LTVs. Moving from 90% to 85% or 75% LTV can cut the rate, so a bigger deposit saves twice: you borrow less and pay less interest on it.
Many lenders let you overpay up to 10% of the balance a year during a fixed period without an early repayment charge. Check your mortgage terms first.
Frequently asked questions
How much can I borrow for a mortgage?
UK lenders often lend around 4 to 4.5 times household income, depending on your outgoings, credit history and their affordability checks.
What is loan to value?
The loan as a percentage of the property’s value. £270,000 on a £300,000 home is 90% LTV.
Is overpaying my mortgage worth it?
It usually saves interest and shortens the term. Check for early repayment charges and compare the mortgage rate with what you could earn on savings.
Sources
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