UK Mortgage Calculator
Calculate monthly payments, LTV and total cost. Compare fixed and variable rate deals for 2025.
Current rate comparison (illustrative)
| Deal | Rate | Monthly payment | Max LTV |
|---|---|---|---|
| 2-yr Fixed (60% LTV) | 4.15% | — | 60% |
| 2-yr Fixed (75% LTV) | 4.42% | — | 75% |
| 2-yr Fixed (85% LTV) | 4.89% | £1,619 | 85% |
| 2-yr Fixed (90% LTV) | 5.21% | £1,671 | 90% |
| 5-yr Fixed (60% LTV) | 3.98% | — | 60% |
| 5-yr Fixed (75% LTV) | 4.21% | — | 75% |
| 5-yr Fixed (85% LTV) | 4.65% | £1,580 | 85% |
| 5-yr Fixed (90% LTV) | 5.01% | £1,638 | 90% |
Rates are illustrative only, based on market averages Jan 2025. Not a mortgage offer. Eligibility subject to lender criteria.
Frequently asked mortgage questions
How much can I borrow for a mortgage in the UK?
Most UK lenders offer between 4x and 4.5x your gross annual salary. Some specialist lenders offer up to 5.5x for professionals. A £50,000 salary typically supports a mortgage of £200,000–£225,000. Your deposit, credit history and outgoings also affect the final offer.
What is a good LTV (loan-to-value) for a mortgage?
An LTV of 75% or below (25% deposit) generally unlocks the best mortgage rates. At 60% LTV you access the very lowest rates. Most first-time buyers start with 85–95% LTV, which is perfectly manageable but comes with slightly higher rates.
How are monthly mortgage payments calculated?
Monthly payments are calculated using the standard annuity formula: payment = 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 number of monthly payments. Our calculator uses this formula.
Should I choose a fixed or variable rate mortgage?
Fixed rates give you certainty — your payment won't change for the fixed period (typically 2 or 5 years). Variable rates (trackers or SVRs) can fall when the Bank of England base rate drops, but can also rise. Most buyers in 2024–25 are opting for 2-year or 5-year fixes for peace of mind.
What is stamp duty and how much will I pay?
Stamp Duty Land Tax (SDLT) applies on properties over £250,000 for standard purchases (£425,000 for first-time buyers as of April 2025). Rates are 5% on the portion between £250k and £925k, 10% up to £1.5m, and 12% above that. Use HMRC's calculator for an exact figure.