Your monthly repayment at the lowest rate 11 UK lenders publish today for your deposit, from 4.08%: what it becomes when the deal ends, what it costs over the term, and how much sooner overpaying repays it.
The monthly repayment on a repayment mortgage at 5.23%, the lowest 2-year fixed rate published today for a 90% loan by the 11 lenders NewHomeSearch reads, over each term.
| Loan | 25 years | 30 years | 35 years |
|---|---|---|---|
| £100,000 | £598 | £551 | £519 |
| £150,000 | £897 | £826 | £779 |
| £200,000 | £1,196 | £1,102 | £1,039 |
| £250,000 | £1,495 | £1,377 | £1,299 |
| £300,000 | £1,794 | £1,653 | £1,558 |
| £350,000 | £2,093 | £1,928 | £1,818 |
| £400,000 | £2,392 | £2,204 | £2,078 |
| £450,000 | £2,691 | £2,479 | £2,338 |
| £500,000 | £2,990 | £2,755 | £2,597 |
A fixed or tracker deal lasts a few years; then the loan moves to the lender’s variable rate unless you take a new deal, and the payment is worked out again on what you still owe. On £359,996 over 30 years, the lowest 2-year fix today, at 5.23%, costs £1,983 a month. After 2 years, at its 6.5% follow-on rate, the £349,534 then owed costs £2,262 a month: £278 more. The calculator shows the same jump for your own figures.
An overpayment goes straight off what you owe, so less interest builds up and the loan ends sooner. On £359,996 at 5.23% over 30 years, each monthly overpayment saves this much; put your own in the calculator above.
| Overpay a month | Repaid in | Sooner by | Interest saved |
|---|---|---|---|
| £50 | 28 years 4 months | 1 year 8 months | £23,614 |
| £100 | 26 years 10 months | 3 years 2 months | £43,981 |
| £200 | 24 years 4 months | 5 years 8 months | £77,461 |
| £500 | 19 years 2 months | 10 years 10 months | £143,521 |
Mortgage overpayment calculator: a lump sum as well as monthly, on what you owe now, against the allowance most deals give.
On interest only you pay just the interest each month, so the payment is lower but the whole loan is still owed at the end. On £359,996 at 5.23% over 30 years:
| Mortgage | A month | Interest over the term | Owed at the end |
|---|---|---|---|
| Repayment | £1,983 | £354,047 | £0 |
| Interest only | £1,569 | £564,834 | £359,996 |
Interest only mortgage calculator: part and part as well, and the monthly saving it takes to repay the loan at the end.
A longer term lowers the monthly payment and raises the interest paid over the life of the loan. On £359,996 at 5.23%:
| Term | A month | Interest over the term |
|---|---|---|
| 20 years | £2,422 | £221,234 |
| 25 years | £2,153 | £285,911 |
| 30 years | £1,983 | £354,047 |
| 35 years | £1,870 | £425,404 |
| 40 years | £1,791 | £499,723 |
Every UK repayment mortgage uses the same formula: the level monthly payment that repays the loan and its interest over the term.
Payment = P × r ÷ (1 − (1 + r)^−n)
P is the loan, r the monthly rate (the annual rate ÷ 12) and n the number of monthly payments. For £359,996 at 5.23% over 30 years, r is 0.4358% and n is 360, so the payment is £1,983 a month. Interest is charged each month on what is still owed, which is why the first years are mostly interest and the last mostly capital.
The middle asking price of the 19,153 new homes for sale in England on NewHomeSearch is £399,995. With a 10% deposit, the £359,996 loan costs £1,983 a month over 30 years at 5.23%. New homes for sale up to £399,995
£1,102 a month over 30 years or £1,196 over 25, on a repayment mortgage at 5.23%, the lowest 2-year fixed rate published today for a 90% loan by the 11 lenders NewHomeSearch reads. The calculator above works out your own loan, rate and term.
£1,653 a month over 30 years or £1,794 over 25, on a repayment mortgage at 5.23%, the lowest 2-year fixed rate published today for a 90% loan by the 11 lenders NewHomeSearch reads. The calculator above works out your own loan, rate and term.
Payment = P × r ÷ (1 − (1 + r)^−n), where P is the loan, r the monthly rate (the annual rate ÷ 12) and n the number of monthly payments. For £359,996 at 5.23% over 30 years, r is 0.4358% and n is 360, so the payment is £1,983 a month.
On what you still owe, at the annual rate ÷ 12 each month. So the first payments are mostly interest and the last mostly capital: on £359,996 at 5.23%, the first year’s interest is £18,707 of £23,801 paid.
The loan moves to the lender’s variable rate unless you take a new deal. On £359,996 over 30 years, the lowest 2-year fix today costs £1,983 a month; after it, at its 6.5% follow-on rate, £2,262 a month on the £349,534 then owed.
Overpaying £100 a month on £359,996 at 5.23% over 30 years repays it 3 years 2 months sooner and saves £43,981 of interest. Of the 306 deals here whose lender states an overpayment allowance, 225 allow 10% of the balance a year without a charge.
Overpay, or take a shorter term. On £359,996 at 5.23%, 20 years costs £2,422 a month against £1,983 over 30, and £132,813 less interest; paying the difference as an overpayment on the 30-year loan repays it in about 20 years.
Usually: today the lowest 2-year fix for a 60% loan is 4.87%, against 5.52% for a 95% loan. Change the deposit in the calculator to see the rate and payment move.
It depends on your income, your regular commitments and the income multiple lenders lend at. The affordability calculator works it out from your income and deposit.
No: it works out the repayment on the loan. A product fee paid upfront or added to the loan changes the cost; the rate comparison adds each deal’s fees and cashback into its true cost.