🏠Mortgage Calculator
Calculate monthly mortgage payments, total interest, and see how different loan terms affect your home purchase
Loan Details
Purchase price of the home
Percentage of home price
Annual interest rate
Additional Costs
Annual property tax amount
Annual homeowner's insurance premium
Private Mortgage Insurance (auto-calculated if down payment < 20%)
Homeowner's Association fees
Extra Payments
Additional principal payment each month
UK Mortgage Calculator – Stamp Duty, LTV & Help to Buy
Calculate your monthly mortgage repayments in pounds sterling using UK lending criteria. This calculator accounts for Loan-to-Value (LTV) ratios that determine your interest rate tier, and helps you understand the full cost of buying a home in England, Wales, Scotland, or Northern Ireland. Factor in Stamp Duty Land Tax (SDLT), buildings insurance, and service charges to get a complete picture of your monthly outgoings.
Understanding Your Mortgage
🏠 Key Components
- Principal: The amount borrowed
- Interest: Cost of borrowing money
- Property Tax: Annual tax on your property
- Insurance: Protects your home
- PMI: Required if down payment < 20%
- HOA: Community association fees
💡 Smart Tips
- • Aim for 20% down to avoid PMI
- • Extra payments reduce total interest
- • Shorter terms = lower total interest
- • Shop around for best interest rates
- • Factor in closing costs (2-5%)
- • Keep monthly payment under 28% of income
Financial Guidelines & Regulations
FCA Mortgage Affordability Rules
The Financial Conduct Authority (FCA) requires lenders to "stress test" your affordability at higher interest rates (typically 3% above the lender's standard variable rate). This ensures you could still afford repayments if rates rise. Most UK lenders will offer 4–4.5 times your annual salary, though some specialist lenders may stretch to 5–6 times for high earners with clean credit histories.
Financial Conduct Authority (FCA) – Mortgage Market Review
Stamp Duty Land Tax (SDLT) Thresholds
In England and Northern Ireland, Stamp Duty Land Tax (SDLT) applies on properties over £250,000 (£425,000 for first-time buyers). Rates range from 5% on the portion £250,001–£925,000, up to 12% above £1.5 million. Scotland uses Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT), each with different thresholds. These costs add significantly to your upfront expenses.
HMRC – Stamp Duty Land Tax Rates
Money Advice Service – Mortgage Types Explained
The Money and Pensions Service (MaPS, formerly Money Advice Service) outlines key UK mortgage types: fixed-rate (payments locked for 2–10 years), tracker (follows Bank of England base rate), and standard variable rate (SVR). Fixed rates offer payment certainty, while trackers can be cheaper initially but carry rate-rise risk. Most UK borrowers remortgage every 2–5 years when their fixed deal expires.
MoneyHelper (Money and Pensions Service) – Mortgage Types
Frequently Asked Questions
How much deposit do I need to buy a house in the UK?
Most UK lenders require a minimum deposit of 5–10% of the property value, though 15–20% secures significantly better interest rates. On a £300,000 property, a 10% deposit is £30,000. First-time buyers may access government schemes like the Lifetime ISA (25% bonus up to £1,000/year) or shared ownership to reduce the upfront deposit needed.
How does Stamp Duty affect my home purchase costs?
On a £400,000 property in England, a standard buyer pays £7,500 in Stamp Duty (nothing on the first £250,000, then 5% on £250,001–£400,000). First-time buyers pay nothing on the first £425,000 for properties up to £625,000. In Scotland, LBTT on £400,000 is approximately £16,350. These are one-off costs payable on completion day.
What is an LTV ratio and why does it matter for UK mortgages?
Loan-to-Value (LTV) is the mortgage amount as a percentage of the property value. A £270,000 mortgage on a £300,000 property is 90% LTV. UK lenders offer tiered rates: 60% LTV gets the best rates, 75% is competitive, 90% carries higher rates, and 95% has the highest rates. Reducing your LTV by even 5% can save hundreds per year in interest.
Financial Accuracy
Disclaimer: This calculator provides estimates for informational purposes only. This is not financial, tax, or legal advice. Please consult a qualified financial advisor for advice specific to your situation.