UK Mortgage Repayment Calculator Guide
This free calculator helps UK homebuyers, first-time buyers, and buy-to-let investors estimate their mortgage costs. It covers two core mortgage types: a standard repayment mortgage (where each payment reduces the balance) and an interest-only mortgage (where you only pay interest monthly and repay the full capital at the end).
2026 UK Mortgage Rate Snapshot
| Product Type | Typical Rate (2026) | Notes |
|---|---|---|
| 2-Year Fixed (60% LTV) | 3.8% – 4.5% | Lowest rates, large deposit required |
| 5-Year Fixed (75% LTV) | 4.2% – 5.0% | Popular for rate certainty |
| 2-Year Fixed (90% LTV) | 5.0% – 6.2% | Higher rate for smaller deposits |
| Variable / Tracker | Bank Rate + 0.5–1.5% | Follows Bank of England base rate |
| Interest-Only (BTL) | 4.8% – 6.5% | Buy-to-let investment mortgages |
Stamp Duty Land Tax (SDLT) Rates — England & Northern Ireland
| Property Price Band | Standard Rate | First-Time Buyer Rate | Additional Property Rate |
|---|---|---|---|
| Up to £250,000 | 0% | 0% (up to £425,000) | 3% |
| £250,001 – £925,000 | 5% | 5% (above £425,000) | 8% |
| £925,001 – £1,500,000 | 10% | 10% | 13% |
| Above £1,500,000 | 12% | 12% | 15% |
Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT) — rates differ. This calculator uses England/Northern Ireland SDLT rates.
What Other Costs Should UK Buyers Budget For?
- Conveyancing solicitor fees: £1,000 – £3,000
- Mortgage arrangement fee: £0 – £2,000 (some lenders add this to the mortgage)
- Surveyor / valuation fee: £300 – £1,500 depending on survey type
- Buildings insurance: Required from exchange of contracts (£150–£400/year typical)
- Moving costs: £300 – £2,000
Frequently Asked Questions
What is a repayment mortgage vs interest-only in the UK?
With a repayment mortgage, each monthly payment covers interest plus some capital, so at the end of the term you own the property outright. With an interest-only mortgage, monthly payments only cover interest — you must repay the full loan amount separately at the end of the term (e.g., through savings, investments, or selling the property).
What deposit do I need for a UK mortgage?
Most lenders require at least a 5% deposit (95% LTV). A 10% deposit gives access to more competitive rates. The best rates are typically available at 40% deposit (60% LTV). First-time buyers may access government schemes including the Mortgage Guarantee Scheme.
How is UK Stamp Duty calculated?
SDLT is calculated in bands, similar to income tax. You pay 0% on the first £250,000, then 5% on the portion between £250,001 and £925,000, and so on. You do not pay the higher rate on the entire property price — only the portion that falls in each band.
Can I use this mortgage calculator for a buy-to-let property?
Yes. Select "Additional / Buy-to-Let" from the Buyer Type dropdown to apply the correct 3% SDLT surcharge. For buy-to-let, most lenders require a 25% deposit and base affordability on rental yield rather than personal income.