Estimated monthly payment
£1,403
Repayment mortgage of £240,000 over 25 years at 5%.
- Monthly payment
- £1,403
- Total repayment
- £420,905
- Total interest
- £180,905
- Deposit
- £60,000
- 20% of price
- Loan amount
- £240,000
- LTV ratio
- 80.0%
- Standard LTV
Affordability estimate
UK lenders typically offer 3× to 4.5× your annual gross income. To afford this mortgage you would need approximately:
- Conservative (3×)
- £50,509
- annual income
- Typical (4.5×)
- £75,763
- annual income
This is an estimate only. Actual monthly payments depend on your lender, product type, fees and your full financial circumstances. This is not financial advice.
How to use this calculator
Estimate your monthly mortgage cost
Check monthly affordability
Compare the monthly payment against your take-home pay. Most lenders want the mortgage to be under 35-40% of gross income.
Compare deposit sizes
A larger deposit reduces the LTV and can unlock better interest rates. Try different percentages to see the impact.
Test rate scenarios
Interest rates change. Try a higher rate to see what happens if rates rise before you complete or remortgage.
About this calculator
This mortgage calculator uses the standard UK repayment mortgage formula. It calculates monthly payments based on the loan amount (property price minus deposit), the annual interest rate and the mortgage term in years.
The LTV (Loan-to-Value) ratio shows how much you are borrowing relative to the property value. Most lenders offer their best rates at 60% LTV or below, with tiered pricing at 75%, 85% and 95% LTV thresholds.
The affordability estimate shows the range of annual gross income that UK lenders would typically require. Most lenders use a multiplier between 3× and 4.5× annual income, though the exact figure depends on your credit history, existing debts, number of dependants and the lender's own criteria.
This tool does not account for arrangement fees, valuation fees, legal costs, stamp duty, buildings insurance, mortgage protection insurance or early repayment charges. It is an educational estimate only and is not financial advice.
Frequently asked questions
How is the monthly payment calculated?
For a repayment mortgage, the calculator uses the standard formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate and n is the total number of monthly payments. For interest-only, the monthly payment is simply the loan amount multiplied by the monthly interest rate.
What is the difference between repayment and interest-only?
A repayment mortgage pays both interest and capital each month, so the loan is fully repaid by the end of the term. An interest-only mortgage pays only the interest each month — you still owe the full loan amount at the end and must have a plan to repay it (such as investments, savings, or selling the property).
What is LTV and why does it matter?
LTV (Loan-to-Value) is the ratio of your mortgage amount to the property value. A lower LTV means a larger deposit and typically unlocks better interest rates. For example, a 75% LTV mortgage on a £300,000 property means borrowing £225,000 with a £75,000 deposit. Most lenders offer their best rates at 60% LTV or below.
What is the affordability estimate?
UK lenders typically offer between 3× and 4.5× your annual gross income. The calculator shows both a conservative (3×) and typical (4.5×) income threshold to help you gauge what salary you would need. The exact figure depends on your credit history, existing debts, number of dependants and the lender's criteria.
Does this include fees or insurance?
No. This calculator shows principal and interest only. It does not include arrangement fees, valuation fees, legal costs, stamp duty, buildings insurance or any other costs associated with buying a property.
Is this financial advice?
No. This is an educational estimate only. Actual monthly payments depend on your lender, product type, fees and your full financial circumstances. Always consult a qualified mortgage adviser before making decisions.