Mortgage Repayment Calculator

A repayment mortgage uses the standard amortisation formula. Each monthly payment covers the interest charged on the outstanding balance plus a portion of the capital. Early in the term, most of the payment is interest. As the balance reduces, more of each payment goes toward capital. This calculator uses the exact same formula your lender would use.

A repayment (capital and interest) mortgage means you are paying down the balance every month, so the mortgage will be fully paid off by the end of the term. An interest-only mortgage means your payments only cover the interest — the full capital balance remains outstanding at the end of the term and must be repaid separately.

The interest rate has a significant impact. On a £200,000 mortgage over 25 years, the difference between 3.5% and 5.5% is approximately £200 per month. Fixing your rate locks in your payment for the fixed term. We search 90+ lenders to find the most competitive rate for your circumstances.

A shorter term means higher monthly payments but significantly less total interest paid. A longer term reduces your monthly payment but increases the total cost. The right choice depends on your monthly affordability and your overall financial plan. We model both options for you as part of our free consultation.