Mortgage Repayment Calculator

You can use our mortgage repayment calculator to get an idea of the likely monthly cost of a particular rate, term and amount. If you ask an independent mortgage broker to search the market for a suitable product, they will find the best deal available for your individual circumstances. This means that the best product for you may not necessarily have the lowest initial rate because they take into account other factors such as the lender's fees, service levels and completion times.

To use the calculator, enter your figures directly into the corresponding fields & then press 'Calculate'. Your results will appear below the calculator.

Mortgage AmountHow much do you need to borrow?

Interest RateAt what interest rate?

Term in YearsOver how many years?

The results of your calculations

For a Capital and Interest Repayment Mortgage your monthly payment would be . This means the total amount repaid would be which is the original loan plus in interest. At the end of the term you will have repaid all of the mortgage and owe nothing.

With an Interest Only mortgage your monthly repayment would be just although after you will have paid in interest and still owe your lender .

However, it's important to note that if the interest rate should rise by just 1% to your payments would increase by to for a Capital & Interest Repayment mortgage and by to for an Interest Only mortgage.

As you can see, even a small rise in interest rates can make quite a difference to your monthly payment. To work out how a different interest rate rise could affect your repayments you can use our rate rise calculator.

The difference between repayment and interest only mortgages

A repayment mortgage is one where your monthly payment covers the interest charged by your lender as well as repaying the original loan. This means your debt is gradually reduced over the term of the mortgage and at the end you will owe nothing. An interest only mortgage is one where your monthly payment only covers the interest charged by your lender. Because you don't pay anything off the loan, at the end of the term you will still owe the full amount.

Borrowers with interest only mortgages will usually set up some kind of investment based mortgage repayment product like an ISA or an endowment (at an additional monthly cost) designed to repay the whole debt at the end of it's term. The figures produced by this calculator do not include the cost of insurance or any investment based mortgage repayment vehicle.

Are interest only mortgages still available?

It is common for nearly all Buy to Let mortgages to be advanced on an interest only basis, but what about residential mortgages? The recent Mortgage Market Review (MMR) was a comprehensive review of the mortgage market, which started with a Discussion Paper in 2009 and culminated in a Policy Statement and final rules in October 2012. According to the Financial Conduct Authority (FCA) website:

"Lenders will still be allowed to grant interest-only loans, but only where there is a credible strategy for repaying the capital."

This means that yes, interest only mortgages are still available, but the lender must be convinced that whatever repayment vehicle you have in place (such as an endowment, pension or ISA) will be enough to repay the loan at the end of the term. You should therefore consider the possibility that the total monthly cost of your repayment vehicle added to the interest only mortgage payment will be about the same, if not more than, the monthly cost for a repayment mortgage. Further information on the guidance for lenders regarding interest only mortgages is also available on the FCA Handbook website here.