How much are the mortgage repayments?

Understanding how much your monthly repayments will be is a crucial step in applying for a new mortgage. Taking out a mortgage at the top end of your budget may seem like a good idea but future mortgage rate increases could see you in a situation where you can’t afford the repayments. Instead, it may be better to opt for mortgage repayments that you can comfortably afford – even if this means borrowing slightly less.

You can get an approximate cost of your monthly repayments using our mortgage calculator. First, input in the total amount that you would like to borrow, and then input the number of years you would like the mortgage – normally for new mortgages for first-time buyers this will be around 25 years, however more lenders are now happy to offer mortgages over periods of up to 40 years.

Next, you need to specify the interest rate to calculate your monthly mortgage repayments.

Most residential mortgages will be on a capital and interest repayments basis, this means that each month you pay off a proportion of the amount you have borrowed as well as interest.

Interest only means that you are just paying off the monthly interest on your loan without ever repaying the sum you’ve borrowed.

This calculator is designed for residential mortgages on a capital and interest repayment basis, it does not apply to buy-to-let mortgages, which may be on an interest only basis.

To find out more about the different types of mortgage repayment options – and those that may be suitable for you – see our handy guide – Different Types of Mortgages.

Once you have filled in the required information, simply click the ‘Calculate’ button to see how much you might be expected to pay on a monthly basis.

Your repayments can be influenced by many factors, including what type of mortgage you opt for, your mortgage needs – such as whether you are looking for a mortgage transfer to another property or if you are a first-time buyer – as well as the Bank of England base rate.

You should also note that extending your mortgage term will reduce your monthly payments, but it will also increase the amount of interest you have to pay overall.

Whereas, reducing the term will increase your monthly payments but you will be mortgage free sooner and pay less interest.

It is also important to note that monthly repayments in variable and tracker mortgages can change depending on the interest rates being charged by your mortgage provider.

Please note that our monthly mortgage repayments calculator will only give you an idea of how much you’ll be paying per month for your mortgage. This does not include any additional costs normally associated with buying a home, such as stamp duty, legal fees, valuation and surveyors costs.

For more information on this, take a look at our guide – The Cost of Buying a New Home.