UK Mortgage Calculator 2026
Instantly calculate monthly repayments, total interest, stamp duty and affordability. Covers England, Scotland and Wales. Repayment and interest-only. First-time buyers, home movers and additional properties.
🏠 UK Mortgage Repayment Calculator
📋 Stamp Duty / Property Tax Rates 2025‑26 & 2026
England & Northern Ireland — SDLT
Standard (Home Mover)
| Purchase Price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Above £1,500,000 | 12% |
First-Time Buyer Relief
| Purchase Price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Above £500,000 | Standard rates apply |
Additional Property (+5% surcharge)
| Purchase Price | Effective Rate |
|---|---|
| Up to £125,000 | 5% |
| £125,001 – £250,000 | 7% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1,500,000 | 15% |
| Above £1,500,000 | 17% |
Scotland — LBTT (Land & Buildings Transaction Tax)
| Purchase Price | Standard Rate | Additional Dwelling (ADS +6%) |
|---|---|---|
| Up to £145,000 | 0% | LBTT + 6% of full price |
| £145,001 – £250,000 | 2% | ADS is 6% of the full purchase price (not banded), added on top of standard LBTT. Introduced October 2024. |
| £250,001 – £325,000 | 5% | |
| £325,001 – £750,000 | 10% | |
| Above £750,000 | 12% |
Wales — LTT (Land Transaction Tax)
| Purchase Price | Standard Rate | Additional Dwelling (HRAD +4%) |
|---|---|---|
| Up to £225,000 | 0% | 4% |
| £225,001 – £400,000 | 6% | 10% |
| £400,001 – £750,000 | 7.5% | 11.5% |
| £750,001 – £1,500,000 | 10% | 14% |
| Above £1,500,000 | 12% | 16% |
Scotland ADS rate increased to 6% in October 2024. England additional dwelling surcharge increased to 5% from 31 October 2024. Always verify current rates at gov.uk, Revenue Scotland or Gov Wales.
📊 LTV Tiers & What They Mean for Your Rate
| LTV Band | Deposit Required | Rate Impact | Notes |
|---|---|---|---|
| 60% or below | 40%+ | Best rates available | Lowest risk tier — largest rate discount |
| 61% – 75% | 25%+ | Very competitive | Still excellent rates; most products available |
| 76% – 80% | 20%+ | Good | Slightly higher rates than 75% tier |
| 81% – 85% | 15%+ | Moderate | Fewer lenders; higher rates |
| 86% – 90% | 10%+ | Limited choice | Rates noticeably higher; some lenders exit this tier |
| 91% – 95% | 5%+ | Highest rates | 95% LTV available via Mortgage Guarantee Scheme |
| Above 95% | Less than 5% | Not available | Mainstream lenders require a minimum 5% deposit |
📘 How to Use This UK Mortgage Calculator
This free UK Mortgage Calculator gives you an accurate monthly repayment figure, total interest cost, stamp duty liability and affordability check — in seconds. Enter the property price, your deposit, mortgage term and interest rate, then click calculate.
- Enter the property price and your deposit. The calculator automatically syncs the deposit amount (£) and percentage (%) — change either one and the other updates live.
- Select your buyer type. First-time buyer relief reduces SDLT in England; additional property surcharges apply if you already own a home anywhere in the world.
- Set your term and interest rate. A 25-year term is the traditional standard. Your interest rate should match the deal you’ve been offered or are researching — rates change daily, so check with lenders or a broker for current offers.
- Choose repayment type. Repayment (capital & interest) pays off the loan over the term. Interest-only keeps payments lower but the loan remains at the end and must be repaid separately.
- Enter your income (optional) to see the affordability check — whether the mortgage passes the FCA 4.5× income test and what your maximum borrowing would be.
How Mortgage Repayments Are Calculated
Monthly repayments on a repayment mortgage are calculated using the standard PMT (Payment) formula used by all UK lenders:
Where: P = loan amount, r = monthly interest rate (annual rate ÷ 12), n = total months (years × 12)
For example, a £270,000 mortgage at 4.5% over 25 years:
- Monthly rate r = 4.5% ÷ 12 = 0.375%
- Total months n = 300
- Monthly payment = £270,000 × [0.00375 × 1.00375³⁰⁰] ÷ [1.00375³⁰⁰ − 1] = £1,501/month
- Total repaid over 25 years: £450,244
- Total interest: £180,244 — more than half the original loan
In the early years, the vast majority of your payment is interest. As your balance reduces, more of each payment goes to capital. This is why overpaying early saves disproportionately large amounts of interest.
Repayment vs Interest-Only Mortgages
Repayment mortgages are the standard choice for residential purchases. Each monthly payment reduces your outstanding balance, so you own the property outright at the end of the term. Your equity builds steadily over time.
Interest-only mortgages have lower monthly payments (you only pay the interest charge each month) but the original loan amount remains unchanged at the end of the term. You must have a credible repayment plan — for residential mortgages lenders scrutinise this carefully. Interest-only is more common for buy-to-let, where the property’s future sale or rental income is the repayment vehicle.
Stamp Duty Land Tax (SDLT) Explained — England
From 1 April 2025, the temporary higher nil-rate thresholds that were in place since September 2022 expired and reverted to standard rates. The key change: the nil-rate threshold dropped from £250,000 back to £125,000.
First-time buyer relief was also reduced — the nil-rate band dropped from £425,000 back to £300,000, and the maximum property price for FTB relief dropped from £625,000 to £500,000.
SDLT Examples (England, from April 2025)
- £200,000 — home mover: 0% on £125k + 2% on £75k = £1,500
- £350,000 — home mover: 0% + 2% on £125k + 5% on £100k = £7,500
- £300,000 — first-time buyer: 0% on full price = £0
- £450,000 — first-time buyer: 0% on £300k + 5% on £150k = £7,500
- £300,000 — additional property: 5% + 7% + 10% = £20,000
Mortgage Affordability: The 4.5× Income Rule
The FCA Mortgage Conduct of Business (MCOB) rules require lenders to ensure mortgages are affordable. In practice, most mainstream lenders cap borrowing at 4.5× gross annual income (single or joint).
- £30,000 income → max borrow ~£135,000
- £50,000 income → max borrow ~£225,000
- £75,000 income → max borrow ~£337,500
- £40,000 + £35,000 joint → max borrow ~£337,500
Some lenders — particularly for professionals or higher earners — offer 5× to 5.5× multiples. Since August 2022, the Bank of England no longer mandates a specific stress test, but lenders must still verify affordability using their own methods, typically checking that repayments remain manageable if rates rose by 2–3 percentage points above the reversion rate.
Fixed vs Variable Rate Mortgages
A fixed rate mortgage locks your interest rate for a set period — typically 2 or 5 years. Your monthly payment stays exactly the same regardless of Bank of England base rate changes. At the end of the fixed period, you revert to the lender’s Standard Variable Rate (SVR) — usually much higher — unless you remortgage.
A tracker mortgage follows the BoE base rate plus a set margin (e.g. base rate + 0.75%). Payments move up or down with rate changes. A discount variable rate tracks the lender’s own SVR at a discount. These carry more risk but can be cheaper if rates fall.
Most buyers choose fixed rates for budget certainty, especially when rates are volatile. The choice between 2-year and 5-year fixes depends on your view of where rates are heading and how long you plan to stay in the property.
First-Time Buyer Benefits in 2026
- SDLT First-Time Buyer Relief (England): 0% on properties up to £300,000; 5% on £300,001–£500,000. No relief above £500,000.
- Mortgage Guarantee Scheme: Government-backed 95% LTV mortgages — allows you to buy with just a 5% deposit on properties up to £600,000.
- Shared Ownership: Buy a share (typically 25–75%) and pay rent on the remainder. Staircase up as your finances allow.
- Lifetime ISA (LISA): Save up to £4,000/year and receive a 25% government bonus (up to £1,000/year) towards a first home purchase under £450,000.
- First Homes Scheme: Newly built homes offered at a discount (30–50% off market value) to local first-time buyers in England.
Related UK Financial Calculators
- UK Income Tax Calculator 2026-27 — Take-home pay, NI, pension and the 60% trap
- UK Student Loan Calculator — Plan 1, 2, 4, 5 and Postgraduate repayments
- UK Inflation Calculator — Real purchasing power and house price inflation
- UK Debt Repayment Calculator — Snowball, avalanche and IVA options
- UK Cost of Living Calculator — Compare costs across UK cities