Mortgage calculator
Monthly repayment
£1,111.66
- Total interest
- £133,499.49
- Total paid
- £333,499.49
- Paid off in
- 25 years
Interest-only would be £750.00 a month, with the whole £200,000 still owed at the end.
| Rate | A month | Change |
|---|---|---|
| 3.5% | £1,001.25 | −£110.42 |
| 4.5% | £1,111.66 | |
| 5.5% | £1,228.17 | +£116.51 |
| 6.5% | £1,350.41 | +£238.75 |
Year by year
| Year | Paid | Interest | Owed at end |
|---|---|---|---|
| 1 | £13,340 | £8,909 | £195,569 |
| 2 | £13,340 | £8,706 | £190,935 |
| 3 | £13,340 | £8,493 | £186,088 |
| 4 | £13,340 | £8,270 | £181,018 |
| 5 | £13,340 | £8,037 | £175,716 |
| 6 | £13,340 | £7,794 | £170,170 |
| 7 | £13,340 | £7,539 | £164,369 |
| 8 | £13,340 | £7,272 | £158,301 |
| 9 | £13,340 | £6,994 | £151,955 |
| 10 | £13,340 | £6,702 | £145,317 |
| 11 | £13,340 | £6,397 | £138,374 |
| 12 | £13,340 | £6,078 | £131,113 |
| 13 | £13,340 | £5,745 | £123,517 |
| 14 | £13,340 | £5,396 | £115,573 |
| 15 | £13,340 | £5,031 | £107,264 |
| 16 | £13,340 | £4,649 | £98,573 |
| 17 | £13,340 | £4,250 | £89,483 |
| 18 | £13,340 | £3,832 | £79,975 |
| 19 | £13,340 | £3,395 | £70,030 |
| 20 | £13,340 | £2,939 | £59,629 |
| 21 | £13,340 | £2,461 | £48,750 |
| 22 | £13,340 | £1,961 | £37,371 |
| 23 | £13,340 | £1,438 | £25,469 |
| 24 | £13,340 | £891 | £13,020 |
| 25 | £13,340 | £320 | £0 |
Interest charged monthly at one twelfth of the yearly rate. An estimate, not advice: fees and rate changes are not included.
How the monthly payment is worked out
On a repayment mortgage every monthly payment is the same, and it is set so that the loan and all the interest are paid off by the end of the term. Each month interest is charged on the balance still owed, at one twelfth of the yearly rate, and the rest of the payment reduces the balance. Early in the term most of each payment is interest; towards the end most of it repays the loan.
The payment is P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r the yearly rate divided by 12 (as a fraction, so 5% is 0.05 ÷ 12) and n the number of monthly payments. At a rate of 0% it is simply the loan divided by the number of months.
On an interest-only mortgage each payment covers only that month's interest, so the amount borrowed is still owed in full at the end of the term and has to be repaid from savings, investments or the sale of the property.
How overpayments are treated
The overpayment is paid every month from the first month, on top of the normal payment. On a repayment mortgage the calculator keeps the monthly payment the same, so the balance falls faster and the mortgage ends sooner; the last payment is only what is left. Some lenders instead lower the monthly payment after an overpayment and keep the original end date. That saves less interest than shortening the term.
On an interest-only mortgage the overpayment reduces the amount owed, so each later month's interest is a little lower and less is owed at the end.
What the calculator does not do
It is an estimate, not advice. It uses one rate for the whole term, so it does not show what happens when a fixed or tracker deal ends and the rate changes, often to the lender's standard variable rate; the table of other rates shows how much a change of rate would move the payment. It leaves out arrangement and valuation fees, broker fees, early repayment charges, insurance, and the lender's checks of income and spending, which decide how much it will lend. It does not cover part repayment and part interest-only mortgages, payment holidays, or one-off lump sum payments.
Figures are not rounded until they are shown. A lender rounds each payment to the penny and may charge interest daily rather than monthly, so its figures can differ from these by a few pence a month. Your mortgage offer and annual statement show the exact amounts.
What is the monthly payment on a £200,000 mortgage?
At 5% over 25 years, a repayment mortgage of £200,000 costs £1,169.18 a month, and the total interest over the 25 years is £150,754.02. At 6% the payment is £1,288.60 a month. Interest-only at 5% is £833.33 a month, but the whole £200,000 is still owed at the end of the term.
How much does overpaying a mortgage save?
Paying £200 a month more on £200,000 at 5% over 25 years clears the mortgage in 18 years 10 months instead of 25 years, 6 years 2 months sooner, and saves £41,842.60 in interest. The earlier an overpayment is made, the more it saves, because it reduces the balance that interest is charged on for every month that follows.
Is a longer mortgage term cheaper?
Each month, yes; in total, no. £200,000 at 5% costs £1,169.18 a month over 25 years and £1,073.64 a month over 30 years, but the total interest rises from £150,754.02 to £186,511.57.
Can I overpay without a penalty?
Many fixed and tracker deals in the UK allow overpayments of up to 10% of the balance each year without an early repayment charge, but the limit and the charge are set by each lender and each product. Check your mortgage offer or ask your lender before overpaying more.
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