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Mortgage Calculator
Free mortgage affordability calculator. Enter property price, deposit, interest rate, and mortgage term to instantly see your monthly payment, total interest, total repaid, and LTV. Optional: enter your annual income to get an affordability ratio with a green/amber/red indicator.
5 to 40 years
For affordability ratio
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Frequently Asked Questions
How much can I borrow for a mortgage?
Most UK lenders will lend 4 to 4.5 times your annual income. In the US, lenders typically look for housing costs (mortgage, taxes, insurance) to be below 28% of gross monthly income, and total debt payments below 36-43%. Use this calculator to see if your target property meets the affordability thresholds.
What is LTV (loan-to-value)?
LTV is the loan amount as a percentage of the property price. A 10% deposit gives an LTV of 90%. Lower LTV means less risk for the lender, which typically means better interest rates. Most lenders offer better rates at 60%, 75%, and 80% LTV thresholds. A 5% deposit (95% LTV) is available but usually carries a much higher rate.
What is the difference between repayment and interest-only?
A repayment mortgage pays back both interest and a portion of the capital each month. By the end of the term, you own the property outright. An interest-only mortgage only pays the interest - the full capital is still owed at the end of the term. Most lenders now require a credible repayment plan before offering interest-only products.
How does overpaying affect my mortgage?
Overpaying your mortgage reduces the outstanding capital, which reduces the interest charged in future months. Even small regular overpayments can save tens of thousands in interest and cut years off your term. Most lenders allow overpayments of up to 10% per year without early repayment charges.
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