Thinking about buying a home in the UK and want to know what your monthly repayments will be? Our free mortgage calculator gives you an instant breakdown of your monthly repayment, total interest paid and full repayment schedule.
👉 Calculate your mortgage repayment free on Kalkulo
How Does a UK Mortgage Work?
A mortgage is a loan from a bank or building society to finance a home purchase. Each monthly repayment covers two components:
- Capital: the portion of the loan balance you're paying down
- Interest: the lender's fee for providing the loan
In the early years, most of your repayment goes toward interest. Over time, the balance shifts — you pay more capital and less interest each month.
Mortgage Repayment Formula
M = P × [r(1+r)^n] ÷ [(1+r)^n − 1]
- M = monthly repayment
- P = loan amount
- r = monthly interest rate (annual rate ÷ 12)
- n = number of payments (years × 12)
Real Examples for 2026
Estimated average rate: 4.8% on a 5-year fixed mortgage (25-year term)
| Loan Amount | Term | Monthly Repayment | Total Interest Paid |
|---|---|---|---|
| £150,000 | 25 years | £858 | £107,400 |
| £250,000 | 25 years | £1,430 | £179,000 |
| £350,000 | 30 years | £1,837 | £311,300 |
| £500,000 | 25 years | £2,860 | £358,000 |
2026 UK Mortgage Rates
| Mortgage Type | Estimated Rate |
|---|---|
| 2-year fixed | ~4.5–5.0% |
| 5-year fixed | ~4.4–4.8% |
| Tracker (BoE base +0.75%) | ~5.0% |
Always compare deals from multiple lenders or use a whole-of-market broker.