How is a monthly mortgage payment calculated?

A repayment mortgage uses the standard amortisation formula. Your monthly payment is calculated from the loan amount (purchase price minus deposit), the interest rate divided by 12, and the total number of monthly payments over the term. Each payment covers both interest and a portion of the capital, with the balance shifting in your favour over time.

What is a good loan-to-value ratio?

Loan-to-value (LTV) is the size of your mortgage as a percentage of the property price. Lenders price mortgages in tiers: 60% LTV or below typically gets the best rates, with rates rising at 75%, 80%, 85%, 90% and 95%. A larger deposit usually means a lower interest rate and a smaller monthly payment.

What is the difference between a repayment and interest-only mortgage?

A repayment mortgage gradually pays off both the interest and the capital, so you fully own the property at the end of the term. An interest-only mortgage only covers the interest each month, leaving the original loan amount to be repaid as a lump sum at the end of the term.

How much can I borrow for a mortgage?

Most UK lenders will lend between 4 and 4.5 times your annual income, though some offer up to 5.5 times for higher earners or specific professions. Affordability is also assessed against your monthly outgoings, credit history and the stress-tested cost of the mortgage.

Mortgage Calculator

Discover what your repayments may look like with our mortgage calculator.

Mortgage Calculator | HR Estate Agents

Buyer Tools

Mortgage Calculator

See your monthly payments, loan-to-value, total interest and more. A clear picture of what your mortgage really costs over the life of the loan.

Monthly payment

£0

Enter your details to see your payment.

Loan-to-value (LTV)

—

60% 75% 85% 95%

Loan amount

£0

Total interest paid

£0

Over the full term

Total repaid

£0

Capital plus interest

Income to qualify

£0

Based on 4.5x salary multiple

Want a real-world quote tailored to your situation?

Speak To HR Financial Services Looking for a property to buy? Browse our listings.

Important: This calculator is for guidance only and does not constitute a mortgage offer or financial advice. Figures assume a constant interest rate over the full term, which is unlikely in practice as most UK mortgages are fixed for a shorter period (typically 2 to 5 years) before reverting to a different rate.

Actual mortgage availability, interest rates and monthly payments depend on your individual circumstances, credit history, income and the lender's affordability criteria. Always speak to a qualified mortgage adviser before making a decision. Your home may be repossessed if you do not keep up repayments on your mortgage.