Mortgage Calculator UK
Mortgage Repayment Calculator
Our Fee-Free Mortgage Advisors do everything for you!
Frequently Asked Questions
What are the repayments on a mortgage?
When you take out a mortgage, the loan amount plus interest must be paid back each month in order to satisfy your repayment obligations. The actual payment amounts depend on numerous components including the size of the loan, mortgage term, prevailing interest rates, and any additional fees incurred during setup.
Knowing exactly how much you’ll owe for your mortgage payments each month depends on the terms of your agreement. Utilise our handy repayment calculator or formula to accurately gauge the expected monthly repayments based on loan amount, interest rate, and mortgage term.
How are mortgage repayments calculated?
When calculating monthly mortgage repayments, there are several components to consider: the loan amount, interest rate, and term. To ensure you understand the process completely, here is an overview of how it works:
- Determine the loan amount: This is the total amount you are borrowing for your mortgage.
- Determine the interest rate: This is the rate at which interest will be charged on your mortgage.
- Determine the mortgage term: This is the length of time over which you will repay the mortgage.
- Use a mortgage repayment calculator: You can use an online mortgage repayment calculator or a formula to calculate your monthly mortgage repayment. The formula is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
M = Monthly mortgage payment
P = Loan amount
i = Interest rate (monthly rate)
n = Loan term (number of months)
Utilising the calculator or formula, you can calculate your monthly mortgage repayment with precision based on loan amount, interest rate and loan term.
When considering your mortgage, always bear in mind that the amount of interest you will be charged is based on multiple factors including interest rate, loan term and remaining balance. During the earlier stages of repayment it’s likely a larger proportion of the payment will go towards paying off any accrued interest fees; however during later years more money should be spent repaying principal amounts.