How much can I borrow for a mortgage?

Most lenders typically lend around 4.5 times your annual salary (or combined income). This varies based on affordability checks and your credit score.

Does overpaying my mortgage reduce the term?

Yes. By overpaying, you reduce the principal balance directly. This means less interest is charged in future months, allowing you to pay off the debt faster.

What is the difference between repayment and interest-only?

With a repayment mortgage, you pay off both the interest and the loan balance monthly. With interest-only, you only pay the interest, meaning the original loan amount must be repaid at the end of the term.

Mortgage Calculator UK 2024 | Instant Monthly Payments & Overpayments

How to use this Mortgage Calculator

Understanding your mortgage options is the first step towards home ownership or a better remortgage deal. Our UK Mortgage Calculator provides an instant breakdown of your monthly costs based on real-time variables.

Property PriceThe total cost of the home you wish to buy.
DepositHow much cash you are putting down. A larger deposit typically secures a lower interest rate.
Interest RateThe annual percentage rate (APR) charged by the lender.
Mortgage TermThe number of years over which you agree to repay the loan (commonly 25 or 30 years).

The Power of Overpayments

Making overpayments is one of the most effective ways to become debt-free sooner. By paying more than your required monthly amount, you directly reduce your principal balance.

This creates a "snowball effect": a lower balance means less interest is charged next month, which means more of your next payment goes towards clearing the debt.

Even an extra £50/month can knock years off your mortgage term.

Two Ways to Overpay

Monthly: A regular extra contribution added to your direct debit. Best for consistent term reduction.
Lump Sum: A one-off payment (e.g., from a bonus or inheritance). Instantly reduces the balance.

Repayment vs. Interest Only

Repayment Mortgage

Every monthly payment covers the interest charge AND pays off a small part of the loan debt.

Guarantees the loan is paid off by the end of the term.
Monthly payments are higher.
Most common for residential homes.

Interest Only

You only pay the interest charges each month. The amount you borrowed remains the same.

Monthly payments are much lower.
You still owe the full loan amount at the end.
Common for Buy-to-Let investments.

Frequently Asked Questions

How much can I borrow?

Most lenders calculate this based on your salary. A common rule of thumb is 4.5x your annual income (or combined income for joint applications). However, this depends on your credit score, outgoings, and deposit size.

What is an amortization schedule?

An amortization schedule shows exactly how your mortgage balance decreases over time. In the early years, most of your payment goes towards interest. As the balance drops, less interest is charged, and more of your payment goes towards clearing the debt.

Do I have to pay Stamp Duty?

If you are buying a property in the UK over a certain value, you likely will. First-time buyers get special relief. Use our dedicated Stamp Duty Calculator to check your exact liability.