🇬🇧 UK Mortgage Calculator

Work out your monthly repayment or interest-only mortgage payment, plus a full Stamp Duty Land Tax (SDLT) breakdown with First-Time Buyer relief — England & Northern Ireland rates, in £.

🏡 Property & Mortgage Details
Standard repayment mortgage — each monthly payment covers interest and a slice of the capital, so the balance reaches zero by the end of the term.
Interest-only mortgage — the monthly payment covers interest only. The full loan amount remains due as a lump sum when the term ends.
£
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£
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Typical: 4.5–5.5% (UK mortgage)
📈 Results
Monthly Payment
Loan Amount
property price − deposit
Total Interest
over full term
SDLT Payable
Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) Breakdown

Total SDLT Payable
Payment Breakdown (Full Term)
Year-wise Principal vs Interest
Payment Schedule (First 12 Months)
#PaymentPrincipalInterestBalance
🇬🇧

Enter Property & Mortgage Details

Fill in the property price, deposit, term, and interest rate, then click Calculate to see your monthly payment and full SDLT breakdown.

Guide

What Is the UK Mortgage Calculator?

Last updated: July 2026 · Reviewed by the NeftCal editorial team

A UK mortgage calculator needs to answer two questions that don't come up in most other countries' mortgage math: whether you're paying down the loan or just servicing interest, and how much Stamp Duty Land Tax (SDLT) you'll owe HMRC on completion day. NeftCal's UK Mortgage Calculator handles both. Toggle between a standard repayment mortgage — where every monthly payment chips away at the capital until the loan hits zero — and an interest-only mortgage, where the payment covers interest alone and the full loan balance falls due as a lump sum at the end of the term. Alongside the payment, it works out your SDLT bill using the current progressive England & Northern Ireland bands, including First-Time Buyer relief where it applies.

UK mortgages are typically quoted with a deposit (often 5–10% minimum, though 15–25%+ unlocks better rates), a term of 20–35 years, and an annual interest rate. This calculator takes those inputs, works out your loan amount, and applies the standard amortization formula for repayment mode or a simple flat-interest calculation for interest-only mode. On top of the payment, it separately computes SDLT — a one-off tax due on most property purchases in England and Northern Ireland, charged in bands so that only the portion of the price within each band is taxed at that band's rate, not the whole purchase price at once.

Who Should Use This Calculator

First-time buyers sizing up a purchase before making an offer, home movers comparing repayment vs. interest-only against their existing mortgage, landlords and investors modeling a buy-to-let purchase's cash flow, and anyone remortgaging who wants to compare a new rate and term against their current deal will all find this useful. It's equally suited to a quick affordability gut-check and to a detailed side-by-side comparison of terms and rates.

Why It Matters for Financial Planning

A mortgage is usually the largest recurring cost in a UK household budget, and SDLT is often the largest one-off cash requirement on top of the deposit — both need to be budgeted for well before completion. Understanding whether interest-only's lower monthly payment is worth the risk of an un-repaid lump sum at the end, and exactly how much SDLT a given price point triggers, are two of the most consequential decisions in a UK property purchase.

Common Scenarios

  • Comparing the monthly cost of Repayment vs. Interest-Only mode on the same property price and term
  • Checking whether a purchase price crosses an SDLT band threshold, and how much extra tax that triggers
  • Working out whether First-Time Buyer relief actually applies before assuming it does
  • Testing how a larger deposit reduces both the loan amount and total interest paid
  • Comparing a 25-year term against a 30- or 35-year term to see the payment-vs-total-interest trade-off

Tips for Accurate Results

  • Use your actual quoted interest rate rather than the typical-range hint, since UK mortgage rates vary by lender and product
  • Double-check the First-Time Buyer box only if you and anyone you're buying with have never owned property anywhere in the world
  • Remember SDLT applies in England & Northern Ireland only — Scotland and Wales use different taxes with different bands
  • If you're buying a second home or buy-to-let, budget for a higher SDLT bill than shown here, since a surcharge applies and isn't modeled by this calculator
  • Re-run Interest-Only mode alongside Repayment mode so you see the full lump-sum implication, not just the lower monthly figure
Formula

How Your Payment and SDLT Are Calculated

The mortgage payment and Stamp Duty Land Tax are two separate calculations, both shown in full below

Loan Amount & Monthly Payment
Loan Amount (L) = Property Price − Deposit

Repayment mode: M = L × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]
Interest-Only mode: M = L × r (flat every month; L is still due in full at the end of the term)

Where:
M = Monthly payment
r = Monthly interest rate = annual rate ÷ 12 ÷ 100
n = Term in months (years × 12)

Stamp Duty Land Tax (SDLT) — Progressive Bands
SDLT = Σ (portion of price within each band × that band's rate)

Standard rates (England & NI):
£0 – £250,000 → 0%
£250,001 – £925,000 → 5%
£925,001 – £1,500,000 → 10%
Above £1,500,000 → 12%

First-Time Buyer relief (only if price ≤ £625,000):
£0 – £425,000 → 0%
£425,001 – £625,000 → 5%
If price > £625,000, no relief applies — standard rates are used instead.

⚙️ Why This Formula Works

The repayment formula is the standard amortization equation: a fixed monthly payment, discounted at the monthly rate over n months, exactly repays the loan by the final payment. Interest-only skips that discounting entirely — since no capital is repaid monthly, the payment is simply the balance multiplied by the monthly rate, and it stays flat because the balance never changes. SDLT is a band tax, not a flat-rate tax, so it must be computed slice by slice: only the portion of the price that falls inside a given band is taxed at that band's rate, which is why a small price increase near a band threshold adds much less tax than crossing into a new higher band on the whole price would.

🎯 When to Use Each Mode

  • Repayment — the loan is guaranteed to be cleared by the end of the term, the default choice for most residential buyers
  • Interest-Only — lower monthly outlay, common for buy-to-let landlords or borrowers with a separate plan to clear the capital
  • Toggle between both on the same figures to compare monthly cash flow against total lifetime cost

📋 Assumptions

  • A fixed interest rate for the full term (not a tracker, discount, or fixed-then-variable product)
  • SDLT uses standard main-residence England & NI bands — no additional-property surcharge is applied
  • First-Time Buyer relief is applied automatically whenever the box is ticked and price is £625,000 or less
  • Interest-only mode assumes the full loan amount is still owed and due at the end of the term

⚠️ Limitations of the Formula

  • Does not model the higher-rate SDLT surcharge for second homes or buy-to-let purchases
  • Does not apply to Scotland (LBTT) or Wales (LTT) — England & NI SDLT bands only
  • Cannot model a tracker, discount, or fixed-then-reverts-to-SVR rate structure mid-term
  • Does not include mortgage arrangement fees, valuation fees, legal fees, or other completion costs
Walkthrough

Step-by-Step: How to Use the UK Mortgage Calculator

From property price to full payment and SDLT breakdown in under a minute

Choose Repayment or Interest-Only mode

Pick Repayment mode for a standard capital-and-interest mortgage, or Interest-Only mode to see a flat interest-only payment with the loan due in full at the end of the term.

Enter the property price and deposit

Input the property price, then enter your deposit as a percentage or a £ amount — both fields stay in sync automatically.

Set the mortgage term and interest rate

Choose a term between 20 and 35 years and enter your quoted annual interest rate, or use the typical-range hint as a starting point.

Tick First-Time Buyer if it applies

If you're a first-time buyer, tick the box to apply SDLT relief automatically on properties priced at £625,000 or less.

Calculate and review your results

Click Calculate to see your monthly payment, loan amount, total interest, and full Stamp Duty Land Tax breakdown, along with charts and a 12-month payment schedule.

Example

Worked Example

A realistic UK purchase using this calculator's default settings

Scenario

Suppose you're buying a £350,000 property with a 10% deposit (£35,000), leaving a £315,000 loan, over a 25-year (300-month) term at a 5.5% annual interest rate, in Repayment mode, and you are not a first-time buyer.

Property Price£350,000
Deposit (10%)£35,000
Loan Amount (L)£315,000
Interest Rate (r)5.5%
Term (n)25 yrs / 300 mo
First-Time BuyerNo
Step 1 — Monthly rate: r = 5.5 ÷ 12 ÷ 100 = 0.0045833. Over 300 months, (1 + r)³⁰⁰ ≈ 3.94265.
Step 2 — Repayment monthly payment: M = 315,000 × 0.0045833 × 3.94265 ÷ (3.94265 − 1) ≈ £1,934.38/month.
Step 3 — Total interest: Total paid over term = 1,934.38 × 300 ≈ £580,312.68. Total interest = £580,312.68 − £315,000 ≈ £265,312.68.
Step 4 — Stamp Duty Land Tax (standard bands, no relief): 0% on the first £250,000 = £0. Plus 5% on the remaining £100,000 (£350,000 − £250,000) = £5,000. Total SDLT = £5,000.
Monthly Payment
£1,934.38
Total Interest (25 yr)
£265,312.68
SDLT Payable
£5,000
Payment #PaymentInterestPrincipalRemaining Balance
1£1,934.38£1,443.75£490.63£314,509.37
2£1,934.38£1,441.50£492.87£314,016.50
3£1,934.38£1,439.24£495.13£313,521.37

Explanation: On this £315,000 loan, the first month's interest of £1,443.75 makes up nearly 75% of the payment, with only £490.63 going toward the balance — typical of the early years of a long repayment term, where the principal share grows slowly at first and then accelerates. Over the full 25 years, the loan costs £265,312.68 in interest, roughly 84% of the amount borrowed.

Interest-only comparison: Switching the same £315,000 loan to Interest-Only mode at 5.5% gives a flat monthly payment of £315,000 × 0.0045833 = £1,443.75/month — about £490.63 less than the repayment figure above. But because none of the capital is ever repaid, the total interest paid over 25 years is £1,443.75 × 300 = £433,125, and the full £315,000 is still owed as a lump sum when the term ends — £167,812 more in interest than repayment mode, plus the un-repaid capital still outstanding.

Interpretation

Understanding Your Results

Is your loan-to-value ratio, and your SDLT bill, in a comfortable range?

Lenders talk about loan-to-value (LTV) — your loan amount as a percentage of the property price — because it drives both your interest rate and your risk. A lower LTV (bigger deposit) almost always means a better rate.

Loan-to-Value (LTV)General ReadTypical Context
Under 75%Strong positionTypically unlocks the most competitive interest rates
75% – 90%Common, moderate ratesWhere most first-time buyers and home movers land
Over 90%Higher rates, less choiceFewer lenders and products; higher interest rate typically applies

For buyers: if your deposit puts you above 90% LTV, consider whether a slightly larger deposit — even a few percentage points — moves you into a materially cheaper rate band before you commit to a lender.

SDLT as a completion-day cost: unlike your deposit, SDLT is due in full alongside the property purchase and is not something you can mortgage — budget for it in cash, separately from your deposit and moving costs.

Risk considerations: this calculator assumes a fixed rate for the full term. It doesn't capture what happens when a fixed or tracker deal ends and you move to your lender's standard variable rate (SVR), which is usually higher — always plan to review your mortgage before any initial deal period expires.

ℹ️

This tool provides general financial estimates for educational purposes only and does not constitute personalized financial, tax, or legal advice. SDLT rates and bands are set by HMRC and the UK government and change periodically, and this calculator's SDLT figures apply to England & Northern Ireland only — Scotland (LBTT) and Wales (LTT) use different taxes with different bands and thresholds. Confirm final SDLT and mortgage figures with a solicitor, conveyancer, or mortgage broker before proceeding with a purchase.

Use Cases

Practical Use Cases for the UK Mortgage Calculator

Where this calculator earns its keep

🏠

First-time buyer budgeting

Check your monthly payment and SDLT relief eligibility before making an offer on your first home.

🔁

Home mover comparison

Compare your new mortgage's payment and term against your existing deal before moving house.

🏘️

Buy-to-let cash flow modeling

Model an interest-only payment against expected rental income for a landlord purchase.

🧾

SDLT budgeting

Work out your exact completion-day Stamp Duty bill before agreeing a purchase price.

📆

Term-length comparison

Compare 20-, 25-, 30-, and 35-year terms side by side to see the payment-vs-total-interest trade-off.

💷

Deposit-size planning

See how increasing your deposit lowers your loan-to-value, monthly payment, and total interest.

⚖️

Repayment vs. interest-only decisions

Directly compare the monthly saving of interest-only against the un-repaid lump sum at the end.

🎯

Band-threshold checking

See exactly how much extra SDLT a purchase price just above £250,000, £425,000, or £625,000 triggers.

📈

Rate-shopping

Re-run the calculation at different quoted rates to see how a 0.25–0.5% difference changes your monthly payment.

Pros & Cons

Repayment vs. Interest-Only: Pros and Cons

Neither approach is universally "better" — it depends on your plan for the capital

✅ Repayment Mortgage

  • The loan is guaranteed to reach zero by the end of the term — no lump sum ever falls due
  • Builds real equity in the property every single month, not just through price appreciation
  • Lower total interest paid over the full term compared to interest-only at the same rate
  • Widely available from virtually every UK mortgage lender, for almost any buyer type
  • Lower risk profile — no need for a separate investment or savings plan to clear the capital
  • Remaining balance shrinks steadily, reducing risk if property values fall (negative equity)
  • Simpler to understand and explain — "the loan" and "the payment" clear together
  • Easier to remortgage later since equity is being built automatically

⚠️ Interest-Only Mortgage

  • Lower monthly payment than repayment on the same loan, rate, and term
  • Frees up monthly cash flow for other investments — common for buy-to-let landlords
  • Popular for landlords who plan to sell the property to clear the loan eventually
  • Requires a credible, lender-approved repayment strategy (savings, investment, or sale) to be arranged
  • The full loan amount is still owed in full at the end of the term — none of it is repaid monthly
  • Total interest paid over the full term is significantly higher than repayment at the same rate
  • No equity is built through payments — only through market price appreciation, if any
  • Fewer lenders offer it for residential (non buy-to-let) purchases, and criteria are stricter
Reference

Stamp Duty Land Tax (SDLT) Band Comparison

Standard rates vs. First-Time Buyer relief bands, side by side

Price BandStandard RateFirst-Time Buyer Rate
£0 – £250,0000%0% (up to £425,000)
£250,001 – £425,0005%
£425,001 – £625,0005%5% (£425,001–£625,000)
£625,001 – £925,0005%No relief — standard rates apply in full
£925,001 – £1,500,00010%No relief — standard rates apply in full
Above £1,500,00012%No relief — standard rates apply in full

How to read this table: each row's rate applies only to the slice of the price that falls within that band — not the whole purchase price. First-Time Buyer relief only exists at all when the total price is £625,000 or less; above that threshold, buyers pay the standard rates with no relief, exactly as if they were not first-time buyers.

Common Mistakes and Expert Tips

❌ Common Mistakes

  • Assuming First-Time Buyer relief applies at any price — it disappears entirely above £625,000
  • Applying one flat SDLT rate to the whole price instead of calculating it band by band
  • Forgetting the higher-rate surcharge applies when buying a second home or buy-to-let property
  • Choosing interest-only for the lower payment without a plan to repay the capital at the end
  • Assuming Scotland or Wales uses the same SDLT bands as England — they don't
  • Underestimating how much a small deposit increase can improve the mortgage rate on offer

💡 Expert Tips & Best Practices

  • Confirm First-Time Buyer eligibility with your solicitor — all buyers on the mortgage must qualify
  • Budget SDLT as cash needed on top of your deposit; it can't usually be added to the mortgage
  • Compare Repayment and Interest-Only on identical figures before choosing, using the mode toggle above
  • Get an Agreement in Principle early so your quoted rate reflects your real credit profile, not just a hint
  • Check gov.uk for the current SDLT bands before exchanging contracts, since rates can change with the Budget
  • If buying in Scotland or Wales, use the relevant LBTT or LTT calculator instead of this SDLT tool
FAQ

Frequently Asked Questions

Common questions about UK mortgage payments and Stamp Duty Land Tax

How is Stamp Duty Land Tax (SDLT) calculated on this calculator?
SDLT is calculated on a progressive, portion-in-band basis using the current England & Northern Ireland residential rates: 0% on the portion of the price up to £250,000, 5% on the portion from £250,001 to £925,000, 10% on the portion from £925,001 to £1,500,000, and 12% on any portion above £1,500,000. Each band's rate only applies to the slice of the price within that band, not the whole purchase price.
What is First-Time Buyer SDLT relief, and how much can I save?
If you tick First-Time Buyer and the property price is £625,000 or less, this calculator applies relief bands instead of the standard ones: 0% on the portion up to £425,000, and 5% on the portion from £425,001 to £625,000. If the price is above £625,000, no relief applies and the standard bands are used instead, exactly as HMRC's rules work in practice.
What's the difference between a repayment and an interest-only mortgage?
A repayment mortgage's monthly payment covers both interest and a slice of the capital (principal), so the balance shrinks every month and reaches zero by the end of the term. An interest-only mortgage's monthly payment covers interest only — the balance never falls, and the full loan amount becomes due as a single lump sum at the end of the term, so borrowers need a separate repayment plan (savings, investments, or property sale) to clear it.
How much deposit do I need for a UK mortgage?
Most UK mortgage lenders require a minimum deposit of around 5–10% of the property price, though a larger deposit — typically 15–25%+ — usually unlocks meaningfully lower interest rates because it reduces the lender's loan-to-value (LTV) risk. Enter your deposit as a percentage or a £ amount in this calculator to see how it changes your loan amount, monthly payment, and total interest.
Does this calculator apply to Scotland or Wales?
No — this calculator uses Stamp Duty Land Tax (SDLT), which applies in England and Northern Ireland only. Scotland has its own Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT), each with different bands, rates, and first-time buyer rules. If your property is in Scotland or Wales, use your national tax authority's own calculator for an accurate figure — the mortgage payment side of this calculator is still valid UK-wide, only the SDLT figure is England/NI-specific.
What mortgage term should I choose?
UK mortgage terms typically range from 20 to 35 years, with 25 years being the most common default. A longer term lowers your monthly payment but increases total interest paid over the life of the loan; a shorter term raises the monthly payment but reduces total interest substantially. Use this calculator to compare terms side by side against your budget.
How is my monthly repayment mortgage payment calculated?
Repayment mode uses the standard amortization formula: M = L × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1], where L is the loan amount (property price minus deposit), r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the term in months. For example, a £315,000 loan at 5.5% over 25 years (300 months) gives a monthly payment of roughly £1,934.38.
What happens at the end of an interest-only mortgage term?
At the end of an interest-only term, the full original loan amount is due as a single lump-sum repayment — none of it has been paid down by the monthly payments, which covered interest only. Borrowers typically plan to clear this using savings, an investment vehicle (such as an ISA), proceeds from selling the property, or by remortgaging. Lenders generally require proof of a credible repayment strategy before approving an interest-only mortgage.
Can I switch between Repayment and Interest-Only mode to compare?
Yes. Use the mode tabs above the calculator to switch between Repayment and Interest-Only — your property price, deposit, term, and rate stay the same, so you can directly compare the monthly payment and total interest cost of each approach on identical loan terms.
Are SDLT rates and bands fixed, or do they change?
SDLT rates, bands, and reliefs are set by HMRC and the UK government, and they do change periodically — sometimes with temporary holidays or threshold adjustments announced in the Budget. This calculator uses the standard current bands described above, but always check gov.uk for the latest rates before relying on a figure for an actual purchase.
Do I pay SDLT if I already own property (second homes/buy-to-let)?
Yes — and typically more. Purchases of additional residential properties, including second homes and buy-to-let investments, are usually subject to a higher-rate SDLT surcharge on top of the standard bands shown in this calculator, and first-time buyer relief does not apply. This calculator models the standard main-residence bands only; if you're buying an additional property, budget for a higher SDLT bill than the figure shown here and confirm the exact surcharge on gov.uk.
How accurate is this calculator compared to a mortgage lender's offer?
This calculator uses the same amortization math lenders use internally for repayment and interest-only mortgages, so the payment figures are typically very close. Your actual lender's offer may differ slightly due to product fees, arrangement fees, valuation costs, or a different day-count convention, and your SDLT bill should always be confirmed with a solicitor or conveyancer before completion — this tool is for planning, not a binding quote.
Is this UK Mortgage Calculator free to use, and is my data private?
Yes, it's completely free with no signup. All calculations run locally in your browser using JavaScript — your property price, deposit, and other details are never transmitted to or stored on a server.
How do I calculate SDLT manually, without a calculator?
Break the property price into the standard bands and apply each band's rate only to the portion of the price within it, then add the results together. For example, on a £350,000 purchase (not first-time buyer): 0% on the first £250,000 = £0, plus 5% on the remaining £100,000 (£350,000 − £250,000) = £5,000, for a total SDLT of £5,000. Higher-value purchases repeat this process through the 10% and 12% bands.
Learn More

Authoritative Resources on UK Mortgages

Official guidance to complement this calculator — not a substitute for licensed financial or legal advice

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