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Mortgage Calculator

how is mortgage repayment calculated

Affordability & Repayment Calculator

Find out how much you could borrow, how much your monthly repayments would be and how much stamp duty you’d pay using our mortgage calculator

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Mortgage calculator

Wondering whether you will get a mortgage big enough to buy your dream house or flat?

Worried about managing the repayments if you do?

Whether you are a first-time buyer or a seasoned investor with a portfolio of rental properties, the MoneySuperMarket Mortgage Calculator is here to help.

Within just a few seconds, it can tell you how much you will be allowed to borrow based on your earnings, and how much your mortgage repayments will be, based on the amount borrowed, the interest rate and the term of the mortgage.

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The tool, also known as a remortgage calculator or an APR calculator, works with all sorts of different home loans – including first-time buyer mortgages, remortgages and buy-to-let mortgages.

All you need to do is choose whether you want to know how much a particular mortgage will cost you or how much you (and your partner, if you have one) can borrow, and then enter the relevant figures.

Top tip: Remember that the mortgage calculator results can only offer an indication, as lenders have different ways of assessing how much you can borrow and calculating repayments.

Calculating mortgage repayments

Few of us have the cash to buy a property outright, so taking out a mortgage is the most popular way to get on to – and move up – the housing ladder.

However, taking out a mortgage is only a good idea if you can afford the repayments.

And that’s where our mortgage repayment calculator comes in.

It can give you a good idea of how much a particular mortgage deal will cost you on both a repayment and an interest only basis – meaning you can try out different scenarios and compare deals based on how much they will cost you per month.

It also tells you the loan to value percentage you need to borrow – for example 75% - which is important because many of the

best deals are only available to those looking to borrow no more than 60% of a property’s value.

And gives you an indication of the stamp duty bill you can expect to pay on the purchase.

To use the mortgage payment calculator, simply enter the price of the property you want to buy, the size of the mortgage you need to buy it, the number of years you want to take the loan out over and the interest rate charged by the lender offering the deal.

Top tip: If affording the mortgage is a concern, and you are taking out a variable-rate deal, it makes sense to check how much your repayments would be should the interest rate rise by say 1% or 2%, and to take any arrangement fees into account.

How much can I borrow?

You need to have a rough idea of how much you can borrow before you even start looking for a new home or investment property.

The MoneySuperMarket mortgage affordability calculator is therefore an invaluable tool for everyone from first-time buyers to families looking for their ‘forever’ house.

To calculate how much you can borrow, you just need to know your current income – and the income of your partner if you're planning a joint purchase.

The calculator will then tell you how much you are likely to be able to borrow – within a certain range.

If you earn £40,000 and your partner earns £30,000, for example, the range given is between £210,000 and £297,500.

Whether you can borrow just £210,000 or as much as £297,500 will depend on a number of factors, including the lender you apply to and whether you have other debts, such as a car loan.

Calculating interest only

While most homeowners pay off a bit of their mortgage capital each month, you can choose to pay just the interest and use other funds to clear the balance when the time comes.

That’s why the MoneySuperMarket calculator gives you two repayment options when you use it to calculate the monthly cost of a deal.

To use the tool as an interest-only mortgage calculator, enter the property price, mortgage amount, term and interest rate and use the lower figure marked ‘interest-only’ for your calculations.

Fixed rate mortgages - Ordered by lowest initial rate

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