UK Mortgage Calculator
Calculate your monthly mortgage payments, total interest, and loan-to-value ratio for UK mortgages with our free online calculator.
Category: Financial
Frequently Asked Questions
How do UK mortgages work?
UK mortgages typically offer fixed or variable interest rates for an initial period (usually 2-5 years), after which they revert to the lender's standard variable rate. Most UK mortgages are repayment mortgages where you pay both interest and principal, though interest-only options exist. Loan terms typically range from 25-35 years.
What is LTV and why is it important?
Loan-to-Value (LTV) is the ratio of your mortgage amount to the property value, expressed as a percentage. Lower LTV ratios (below 75%) typically secure better interest rates. First-time buyers often have higher LTVs (90-95%), while the best rates are available for LTVs of 60% or lower.
How much deposit do I need for a UK mortgage?
Most UK lenders require a minimum deposit of 5-10% of the property value, though 15-25% is more common for the best rates. First-time buyer schemes may allow smaller deposits. The larger your deposit, the lower your interest rate will typically be, as you represent less risk to the lender.