Understanding Your UK Mortgage Payments
Working out your monthly mortgage payments is one of the first steps in your home-buying journey. Our free UK mortgage calculator helps you understand exactly what you'll be paying each month, plus the total cost over your mortgage term.
What is Loan-to-Value (LTV)?
LTV is the ratio of your mortgage loan to the property's value, shown as a percentage. For example, if you buy a £300,000 home with a £30,000 deposit, your LTV is 90%. Lower LTV typically means better interest rates because you're borrowing less relative to the property value.
How Do Interest Rates Affect Payments?
Even small changes in interest rates can significantly impact your monthly payments. On a £270,000 mortgage over 25 years, a 0.5% rate difference could change your monthly payment by over £70 - that's £21,000+ over the full term. Always shop around for the best rates.
Should I Choose a Longer Term?
Longer mortgage terms (like 35 years vs 25 years) reduce your monthly payments but increase the total interest you'll pay. It's all about finding the right balance for your budget and long-term goals. Use our calculator to experiment with different terms.