Calculate your monthly mortgage repayments in the UK with stamp duty estimates and total cost breakdowns. Get accurate calculations for British mortgages including interest-only and repayment options.
The UK mortgage market offers various products and structures designed to meet different borrower needs. Understanding the different types of mortgages, associated costs, and regulations can help you make informed decisions about property purchases in the United Kingdom.
UK mortgages differ significantly from those in other countries, with unique features like stamp duty, tracker rates, and specific lending criteria that reflect the British housing market's characteristics.
Tracker Mortgages: Interest rate tracks the Bank of England base rate plus a fixed margin, moving up or down with rate changes.
Discount Mortgages: Offers a discount off the lender's standard variable rate for a set period.
Offset Mortgages: Links your mortgage to savings and current accounts, using your deposits to offset the mortgage balance for interest calculation purposes.
Stamp Duty is a tax payable when purchasing property in England and Northern Ireland. The rates vary based on property value and buyer circumstances:
| Property Value | Standard Rate | First-Time Buyer Rate |
|---|---|---|
| Up to £250,000 | 0% | 0% |
| £250,001 - £425,000 | 5% | 0%* |
| £425,001 - £625,000 | 5% | 5%* |
| £625,001 - £925,000 | 5% | 5% |
| £925,001 - £1,500,000 | 10% | 10% |
| Above £1,500,000 | 12% | 12% |
*First-time buyer relief applies to properties up to £625,000
Minimum Deposits: Most lenders require a minimum 5-10% deposit, though some specialist lenders offer 95% LTV (Loan-to-Value) mortgages.
Higher Deposits: Larger deposits (20%+) typically unlock better interest rates and more product choices.
Help to Buy: Government schemes may help first-time buyers and home movers with smaller deposits.
Income Multiples: Lenders typically lend 4-5 times annual income, though this varies by lender and circumstances.
Stress Testing: Lenders assess affordability at higher interest rates to ensure borrowers can cope with rate increases.
Debt-to-Income Ratio: Total monthly debt payments (including the new mortgage) should not exceed 40-45% of gross monthly income.
Arrangement Fees: One-off fees charged by lenders, typically £500-£2,000, sometimes added to the mortgage.
Valuation Fees: Cost of property valuation, usually £300-£1,500 depending on property value.
Legal Fees: Solicitor costs for conveyancing, typically £800-£2,500.
Survey Costs: Building surveys range from £400-£1,200 depending on property and survey type.
Council Tax is a local taxation system in England, Scotland, and Wales. Properties are placed in valuation bands (A-H in England and Wales, A-I in Scotland) based on their 1991 values:
| Band | Property Value (1991) | Typical Annual Cost |
|---|---|---|
| A | Up to £40,000 | £900-£1,200 |
| B | £40,001-£52,000 | £1,050-£1,400 |
| C | £52,001-£68,000 | £1,200-£1,600 |
| D | £68,001-£88,000 | £1,350-£1,800 |
| E | £88,001-£120,000 | £1,650-£2,200 |
| F | £120,001-£160,000 | £1,950-£2,600 |
| G | £160,001-£320,000 | £2,250-£3,000 |
| H | Above £320,000 | £2,700-£3,600 |
Help to Buy Equity Loan: Government provides up to 20% (40% in London) equity loan for new-build properties.
Shared Ownership: Buy a share (25-75%) of a property and pay rent on the remaining portion.
Lifetime ISA: Government adds 25% bonus to savings (up to £1,000 annually) when used for first home purchase.
When to Remortgage: Typically when your initial fixed-rate or discount period ends, or when seeking better rates.
Product Transfer: Switching to a new deal with your existing lender, often with minimal fees and no new application process.
Switching Lenders: Moving to a new lender for better rates or terms, involving a new application and legal process.
Higher Deposits: Typically require 25-40% deposits with higher interest rates than residential mortgages.
Rental Coverage: Expected rental income should typically cover 125-145% of monthly mortgage payments.
Tax Considerations: Different tax treatment including restrictions on mortgage interest relief.
Life Insurance: Covers outstanding mortgage balance if the borrower dies during the term.
Income Protection: Covers mortgage payments if unable to work due to illness or injury.
Mortgage Payment Protection: Short-term cover for mortgage payments during unemployment or illness.
Our UK mortgage calculator includes automatic stamp duty calculation based on property price. Enter your property value, and the calculator applies current UK stamp duty land tax (SDLT) rates. For a £300,000 property, you'll pay £5,000 stamp duty. The calculator shows this separately from monthly repayments. For comprehensive financial planning, use our budget calculator to manage your home buying costs.
A repayment mortgage (capital and interest) pays off both the loan amount and interest, meaning you own the property outright at term end. Interest-only mortgages only pay the interest monthly, requiring you to repay the full loan amount at the end. Our calculator shows both options - repayment mortgages typically cost £850-£1,200 monthly for £200,000 loans, while interest-only might be £500-£700. According to the Financial Conduct Authority UK, repayment mortgages are generally recommended for most homebuyers.
UK mortgage deposits typically range from 5% to 40% of the property price. Our calculator lets you adjust deposit percentage to see how it affects monthly payments. A £250,000 property with 10% deposit (£25,000) requires borrowing £225,000. Higher deposits (15-20%) usually secure better interest rates and lower monthly payments. First-time buyers can explore government schemes through GOV.UK affordable home ownership. Calculate savings needed with our savings calculator.
Our UK mortgage calculator provides accurate estimates based on your inputs, typically within £10-£50 of actual mortgage offers for standard residential mortgages. The calculator uses standard UK mortgage formulas with British pound currency and includes arrangement fees, stamp duty, and optional costs like insurance. However, actual rates vary by lender, credit score, and individual circumstances. For precise quotes, compare offers from UK lenders. Track your affordability with our house affordability calculator.
Current UK mortgage rates (2025) range from 4.5% to 6.5% depending on deposit size and mortgage type. Fixed-rate mortgages (2, 3, or 5 years) offer rate certainty typically between 5-6%, while variable rates fluctuate with Bank of England base rates. Use our calculator to compare scenarios - a £200,000 mortgage at 5% costs £1,074/month versus £1,200/month at 6%. Check current rates through the Bank of England for informed decisions. Calculate long-term costs with our compound interest calculator.
UK lenders typically allow borrowing 4-4.5 times your annual income, but affordability depends on monthly expenses, debts, and deposit size. Our mortgage calculator UK helps estimate maximum borrowing - with £50,000 annual income, you might borrow £200,000-£225,000. Lenders stress-test at higher rates (usually +3%) to ensure you can afford future increases. Include all costs: mortgage payments, council tax, insurance, and maintenance. Use our debt ratio calculator to assess borrowing capacity and loan calculator for other financing needs.
Beyond monthly mortgage payments, UK homebuyers face several costs: stamp duty land tax (0-12% of property price), solicitor fees (£800-£1,500), survey costs (£400-£1,500), mortgage arrangement fees (£0-£2,000), and buildings insurance (£200-£500 annually). Our UK mortgage calculator includes stamp duty automatically and lets you add optional costs like council tax, home insurance, and mortgage protection. For a £300,000 property, total upfront costs often reach £15,000-£20,000. Budget comprehensively with our real estate calculator for property investments.
Yes, our UK mortgage calculator works for buy-to-let properties. Buy-to-let mortgages typically require 25% deposits and charge higher interest rates (0.5-1% above residential rates). Lenders assess rental income, usually requiring it to cover 125-145% of mortgage payments. For a £200,000 buy-to-let property, expect £50,000 deposit and £800-£1,000 monthly payments at 6% interest. Calculate potential rental returns with our ROI calculator and assess investment viability. Buy-to-let tax implications differ significantly - consult a specialist or review MoneyHelper UK guidance.