Home Loan Calculator UK 2025/26 | Mortgage Repayment Calculator
Free Home Loan UK 2025/26 | Mortgage Repayment calculator for the UK. Get instant, accurate results with our easy-to-use online tool. Updated for 2025/26...
Last updated: February 2026
Home Loan Calculator UK 2025/26
Calculate your monthly mortgage repayments, compare interest rates, and work out how much you can borrow. Our comprehensive UK mortgage calculator helps you understand total costs including interest, fees, and affordability assessments.
Calculate Home Loan Repayments
Mortgage Affordability Calculator
Find out how much you could potentially borrow based on your income.
UK Mortgage Rates Comparison 2025/26
2-Year Fixed
FIXED RATEPayment certainty for 2 years
Best for: Short-term planning5-Year Fixed
FIXED RATELonger payment security
Best for: Budget certaintyTracker Rate
VARIABLEFollows base rate
Best for: FlexibilitySVR
VARIABLELender's standard rate
Best for: Avoid if possible| LTV Band | 2-Year Fixed | 5-Year Fixed | Typical Deposit |
|---|---|---|---|
| 60% LTV | 4.0-4.5% | 3.8-4.3% | 40% |
| 75% LTV | 4.5-5.0% | 4.2-4.8% | 25% |
| 85% LTV | 5.0-5.5% | 4.8-5.3% | 15% |
| 90% LTV | 5.5-6.0% | 5.2-5.8% | 10% |
| 95% LTV | 6.0-6.8% | 5.8-6.5% | 5% |
UK Mortgage Payment Formula
Monthly Payment (Repayment Mortgage):
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ - 1]
Where:
- M = Monthly payment
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
Example: £200,000 loan at 5% for 25 years
M = £200,000 × [0.00417(1.00417)³⁰⁰] / [(1.00417)³⁰⁰ - 1] = £1,169.18/month
Types of UK Mortgages Explained
Repayment Mortgage
Most common type. Each payment covers interest plus part of the loan, so you're guaranteed to own your home at the end of the term. Monthly payments are higher than interest-only but you build equity every month.
Interest-Only Mortgage
You only pay the interest each month, so payments are lower. However, you must have a repayment plan (investments, savings, or sell the property) to pay off the capital at the end. Stricter lending criteria apply.
Fixed Rate Mortgage
Interest rate stays the same for a set period (typically 2, 5, or 10 years). Provides budget certainty regardless of Bank of England base rate changes. Usually comes with early repayment charges.
Tracker Mortgage
Rate tracks the Bank of England base rate, typically at a set margin above it (e.g., base rate + 1%). Payments go up or down with rate changes. Often more flexible than fixed rates.
Discount Mortgage
Offers a discount off the lender's SVR for a set period. Rate can change but stays below SVR. Less predictable than fixed rates but potentially cheaper.
Offset Mortgage
Your savings are "offset" against your mortgage balance. If you owe £200,000 but have £20,000 in savings, you only pay interest on £180,000. Great for those with substantial savings.
Average UK House Prices by Region 2025/26
| Region | Average Price | 10% Deposit | Est. Monthly* |
|---|---|---|---|
| London | £525,000 | £52,500 | £2,762 |
| South East | £385,000 | £38,500 | £2,025 |
| South West | £330,000 | £33,000 | £1,736 |
| East of England | £340,000 | £34,000 | £1,788 |
| West Midlands | £255,000 | £25,500 | £1,341 |
| East Midlands | £245,000 | £24,500 | £1,288 |
| Yorkshire & Humber | £215,000 | £21,500 | £1,131 |
| North West | £220,000 | £22,000 | £1,157 |
| North East | £165,000 | £16,500 | £868 |
| Scotland | £195,000 | £19,500 | £1,025 |
| Wales | £215,000 | £21,500 | £1,131 |
| UK Average | £290,000 | £29,000 | £1,525 |
*Estimated monthly payment based on 90% LTV, 5% interest, 25-year term. Source: HM Land Registry, ONS.
UK Mortgage Fees & Costs Guide
| Fee Type | Typical Cost | Notes |
|---|---|---|
| Arrangement Fee | £0 - £2,000 | Can be added to mortgage (but pays interest) |
| Valuation Fee | £150 - £1,500 | Often free with some lenders |
| Survey | £400 - £1,500 | HomeBuyer £400-£700, Full Survey £700-£1,500 |
| Legal/Conveyancing | £850 - £1,500 | Plus £300-£500 disbursements |
| Stamp Duty (England/NI) | Variable | 0% up to £250k, 5% £250k-£925k |
| Mortgage Broker | £0 - £500 | Many brokers are free (paid by lender) |
| Early Repayment Charge | 1% - 5% | During fixed/discounted period |
The Power of Overpaying Your Mortgage
Most UK mortgages allow you to overpay up to 10% per year without penalty. Here's what overpaying can save:
| Overpayment | Interest Saved* | Years Off Term |
|---|---|---|
| £100/month | £24,000 | 3.5 years |
| £200/month | £48,000 | 7 years |
| £500/month | £78,000 | 12 years |
*Based on £200,000 mortgage at 5% over 25 years
Navigating the UK Mortgage Market in 2025/26
The UK mortgage landscape has evolved significantly in recent years. Understanding the current market conditions and lender requirements helps you make informed decisions about home financing.
Current UK Mortgage Rate Environment
UK mortgage rates are influenced by the Bank of England base rate and swap rates in financial markets. As of early 2026, fixed-rate deals for borrowers with a 25% deposit typically range from 4% to 5% for two-year fixes and 4% to 4.75% for five-year fixes. Tracker and variable rate mortgages follow the base rate plus a margin set by the lender. When comparing deals, look at the total cost over the initial fixed or tracker period, including arrangement fees (typically £500 to £1,500), valuation fees, and any early repayment charges.
Affordability Assessment Rules
UK lenders assess mortgage affordability using detailed income and expenditure analysis rather than simple income multiples, though most cap lending at around 4.5 times your annual household income. Lenders stress-test your ability to repay at a higher interest rate, typically 3% above the revert rate. They examine committed expenditure including existing loans, credit card payments, childcare costs, and regular financial commitments. Self-employed borrowers typically need two to three years of accounts or SA302 tax calculations from HMRC. Limited company directors may use a combination of salary and dividends, and some specialist lenders will consider retained profits.
Government-Backed Schemes for UK Buyers
First-time buyers in the UK benefit from several support mechanisms. Stamp Duty Land Tax relief means no SDLT is payable on the first £425,000 of a property purchase for first-time buyers (up to a maximum purchase price of £625,000). Lifetime ISAs allow savers aged 18 to 39 to save up to £4,000 per year towards a first home, with a 25% government bonus (maximum £1,000 per year). Shared Ownership schemes let you purchase a share of a property (typically 25% to 75%) and pay rent on the remainder, reducing the deposit and mortgage required. The First Homes scheme offers new-build properties at a discount of at least 30% to local first-time buyers and key workers.
Frequently Asked Questions
Expert Reviewed — This calculator is reviewed by our team of financial experts and updated regularly with the latest UK tax rates and regulations. Last verified: February 2026.
Last updated: February 2026 | Verified with latest UK rates
Pro Tips for Accurate Results
- Double-check your input values before calculating
- Use the correct unit format (metric or imperial)
- For complex calculations, break them into smaller steps
- Bookmark this page for quick future access
Understanding Your Results
Our Home Loan Calculator provides:
- Instant calculations - Results appear immediately
- Accurate formulas - Based on official UK standards
- Clear explanations - Understand how results are derived
- 2025/26 updated - Using current rates and regulations
Common Questions
Is this calculator free?
Yes, all our calculators are 100% free to use with no registration required.
Are the results accurate?
Our calculators use verified formulas and are regularly updated for accuracy.
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