Written by Mark Langshaw Reviewed by Lee Trett
Sources
27 June 2026
Lowest rate is currently 4.45% - 2 years tracker interest only mortgage at 75% LTV
19 June 2026
Lowest rate is currently 3.96% - 25 months tracker interest only mortgage at 60% LTV
14 June 2026
Lowest rate is currently 3.96% - 2 years tracker interest only mortgage at 75% LTV
13 June 2026
Lowest rate is currently 4.45% - 2 years tracker interest only mortgage at 75% LTV
6 June 2026
Lowest rate is currently 3.96% - 2 years tracker interest only mortgage at 75% LTV
21 December 2023
First Published
Mortgage repayments don’t need to be complicated. Read through this comprehensive guide to learn how they work, understand the factors that shape them, and find out how to tally up yours using our handy calculator tool.
How are mortgage repayments calculated?
When you take out a mortgage, you agree to repay the debt over an agreed term, typically 25 years but sometimes longer or shorter than this. In addition to these debt repayments, you will also be charged interest, which is based on a percentage of the mortgage balance.
Whether you make your debt repayments monthly or at the end of the term will depend on what type of mortgage you have. There are three different repayment types:
Capital repayment: You will make your debt repayments monthly along with an interest payment based on a percentage of the outstanding balance.
Interest-only mortgage: You are only required to repay the interest each month and settle the debt itself at the end of the term using a pre-agreed repayment vehicle.
Part-and-part mortgage: This is a middle ground between options 1 and 2, where a portion of the mortgage is capital and repayment and the rest interest-only. This means you will make some debt repayments during the term, but may have outstanding debt left over at the end of the agreement, unless you can make optional overpayments.
In summary, your monthly mortgage payments will be based on the mortgage amount, term length, interest rate and the repayment type you choose.
Mortgage repayment calculator
You can use our calculator below to work out what your mortgage repayments will look like based on the amount you’re borrowing, the term length and the interest rate.
There is also an option to toggle between capital repayment and interest-only.
What factors will determine your mortgage payments?
Here we will take a closer look at the factors that determine mortgage repayments, and how they can vary, to give you a clearer idea of the kind of deal you could end up with.
- Mortgage amount: The amount you can borrow is usually based on 4.5 times your annual income, although it can sometimes be higher depending on the lender you choose. This amount is repaid over the course of the agreed term with monthly interest.
- Term length: Taking out a capital repayment mortgage across a longer term means lower monthly payments as the debt is spread over a wider period, but you will also pay more in interest overall due to having to make a greater number of payments to make.
- Interest rate: The rate you end up with will determine how much your interest payments will be. Mortgage lenders will decide what rate to offer you based on the amount of deposit you have, your credit history and the current market conditions.
- Repayment type: Interest-only mortgages have lower payments as only the interest needs to be paid each month. Capital repayment agreements have higher ones due to the deby repayments, while part-and-part is a middle ground between the two.
- Product type: The mortgage product type will determine how your interest is charged. The two main types are fixed-rate and tracker. With a fixed-rate mortgage, you will pay a lower introductory rate for a set period (usually 2-5 years) before reverting to the lender’s standard variable rate. With a tracker mortgage, your rate is tied to an external marker, usually the Bank of England’s base rate, and can move up or down in line with it.
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Example calculations
The tables below illustrate how mortgage repayments on a capital repayment agreement can vary based on the main factors discussed above.
Repayments based on term length
The data below is based on an example mortgage amount of £190,000, close to the average residential mortgage amount in the UK at the time of writing (July 2025). We have used an interest rate of 4%, which is also representative of the current market conditions.
|
Mortgage Amount |
Term Length |
Monthly Repayment |
Overall Repayment |
| £190,000 | 10 years | £1,924 | £230,839 |
|
£190,000 |
15 years |
£1,405 |
£252,973 |
| £190,000 |
20 years |
£1,151 |
£276,327 |
| £190,000 |
25 years |
£1,003 |
£300,867 |
| £190,000 |
30 years |
£907 |
£326,552 |
| £190,000 |
35 years |
£841 |
£353,334 |
| £190,000 |
40 years |
£794 |
£381,160 |
Repayments based on interest rates
Sticking with the example mortgage amount of £190,000, this table shows how repayments can vary based on the interest rate. We have used an example term length of 25 years.
|
Mortgage Amount |
Interest Rate |
Monthly Repayment |
Overall Repayment |
|
£190,000 |
3.5% |
£951 |
£285,355 |
| £190,000 |
4% |
£1,003 |
£300,867 |
| £190,000 |
4.5% |
£1,056 |
£316,825 |
| £190,000 |
5% |
£1,111 |
£333,216 |
| £190,000 |
5.5% |
£1,167 |
£350,030 |
| £190,000 |
6% |
£1,224 |
£367,252 |
Repayments based on mortgage amount
The table below shows how the repayments compare across different mortgage amounts, with a standard 25-year term length and an example interest rate of 4%.
|
Mortgage Amount |
Monthly Repayments |
Overall Repayments |
|
£528 |
£158,351 |
|
|
£1,056 |
£316,702 |
|
|
£1,320 |
£395,878 |
|
|
£1,584 |
£475,053 |
|
|
£1,847 |
£554,229 |
|
|
£2,111 |
£633,404 |
|
|
£2,375 |
£712,580 |
|
|
£2,639 |
£791,755 |
Click on any of the mortgage amounts in the table above to access more information about the repayments on a home finance loan of this size.
Interest-only mortgage repayments
The table below shows examples of interest-only mortgage repayments based on a loan amount of £190,000 and a term length of the standard 25 years.
|
Mortgage Amount |
Interest Rate |
Monthly Repayment |
Overall Repayment |
| £190,000 |
3.5% |
£554 |
£356,250 |
| £190,000 |
4% |
£633 |
£380,000 |
| £190,000 |
4.5% |
£713 |
£403,750 |
| £190,000 |
5% |
£792 |
£427,500 |
| £190,000 |
5.5% |
£871 |
£451,250 |
| £190,000 |
6% |
£950 |
£475,000 |
How overpayments can affect your mortgage payments
Making mortgage overpayments can reduce the total interest you pay over time and bring down the term of your mortgage. The table below shows how a small overpayment can have this effect on a £200,000 capital repayment mortgage with a 4% rate and 25-year term.
| Monthly Overpayment | Interest Saved | Years Slashed Off Term |
| £0 | £0 | 0 Years |
| £50 | £11,240 | 1 Year 9 Months |
| £100 | £20,450 | 3 Years 4 Months |
| £200 | £35,120 | 5 Years 11 Months |
Other costs and fees
To get a clear idea of what your mortgage will cost over all, there are other fees you should factor in. The main ones are as follows:
- Product fees: Can range between nothing and £2,000. Fee-free deals often come with higher rates, but the fee itself can sometimes be added to the mortgage.
- Valuation fee: Some lenders will expect you to foot the cost of having the property you’re buying valued, and this can set you back between £250-1,500.
- Legal fees: Can range from a few hundred to several thousand pounds.
- Stamp duty: See our stamp duty guide to find out how much your bill will be and whether you qualify for exemption.
- Admin costs: This includes the booking fee, telegraphic transfer fee and the account fee. All in all, admin costs for a mortgage application can cost around £1,000.
Compare the latest mortgage rates
Now that you have a better idea of how much your mortgage repayments will cost, you can compare the latest rates and deals for free using our mortgage sourcing tool below. This tool allows you to choose the deal you want in real time, after which our brokers will secure it for you to save you the stress and legwork.
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Representative example
A repayment mortgage of over year, APR %. Total payable (incl. product fees of ). Repayments: months at (%), then months at (%, variable). Early repayment charges apply. Rates not guaranteed.
About these rates
Rates shown are illustrative based on the property value, mortgage amount, and term you entered above. Actual rates and total cost depend on your credit profile, deposit, and lender assessment. APR figures include product fees where applicable. Early repayment charges may apply. Rates are not guaranteed and may change before you apply - speak to an adviser to confirm what's available to you today. For a per-product representative example, open Show full details on any card above.
Tips to help you lower your mortgage repayments
You can potentially reduce your mortgage repayments by doing the following:
- Put down a larger deposit: Not only would you need to borrow less, putting down extra deposit can reduce the loan-to-value (LTV) ratio and help you qualify for a lower rate.
- Improve your credit situation: Waiting for any bad credit to disappear from your credit files, paying off debts you’re in a position to clear, and paying any existing bills and credit agreements on time ahead of your application can also help you land a lower rate.
- Consider a longer mortgage term: This will reduce your monthly payments in the short term (on a capital repayment agreement), but you will be paying more in interest overall.
- Consider interest-only: Interest-only mortgages have lower monthly payments but you will need a repayment vehicle to settle the debt at the end of the term. Be sure to seek professional advice from a qualified mortgage broker before choosing this option.
Why choose Money Helpdesk for your mortgage needs?
After you have run your calculations to work out roughly how much your mortgage will cost, the next step is to choose your own mortgage deal with us online. You can pick a mortgage that fits your needs in minutes, and we have expert brokers on hand to help you along the way.
Here are some of the other benefits of choosing Money Helpdesk:
- You can access exclusive rates and deals online
- Our brokers are whole-of-market and 5-star rated
- We can secure an agreement in principle for you in minutes
- You can compare the latest rates for FREE on our service
Ready to source your mortgage and access expert advice from a whole-of-market broker? Fill out our form to get started with a free, no-obligation chat.
FAQs
Repayments for buy-to-let mortgages work in exactly the same way as residential, although keep in mind that most are taken out on an interest-only basis. The only calculations that are different are the affordability ones, as these will be based on projected rental income.
Read more about how buy-to-let mortgage repayments are calculated in our standalone guide.
If you are struggling to make your mortgage repayments during the term, you should inform your lender right away and they might offer some flexibility. This could include increasing the term length or letting you temporarily switch to an interest-only agreement without penalty.
Borrowers who want to make these changes to their mortgage through choice rather than necessity would usually be advised to wait until the introductory rates period of their mortgage is ending and remortgage onto a new agreement with different terms.
Yes. This is usually the case as mortgage interest is calculated based on the amount you have outstanding on the mortgage, so as the debt goes down, so does the amount of interest that is charged. This can obviously change if you remortgage and have to take a higher interest rate, or choose to borrow more during the term.
As a general rule of thumb, your mortgage repayments should not exceed 35% of your pre-tax salary or 45% of your after-tax income. This percentage is known as your mortgage-to-salary ratio. You can read more on this topic in our standalone guide.
Most mortgage lenders allow you to make overpayments of up to 10% of the mortgage balance each month. You can do this as a one-off lump sum or as regular overpayments within this percentage.
If you want to overpay by more than this, there are flexible lenders who offer larger, and even uncapped overpayments. You can also overpay by an unlimited amount while on your lender's standard variable rate (SVR).
This is sometimes possible at the lender's digresion but it is advisable that you contact them as soon as possible to inform them of the situation, especially if you are likely to miss a repayment or can only pay it in part.
Depending on the reason you are struggling, your lender might be understanding and help you find a solution. They can be sympathetic towards homeowners who are going through unexpected life events like redundancy, bereavement or serious illness.
In these circumstances, it is sometimes possible to take what is called a mortgage payment holiday, which basically means your repayments will pause for a set period. These should not be taken lightely as your interest will continue to build up and your credit reports can be affected, but could also help you get back on your feet.
You would pay all of the interest due each month but only pay off some of the capital, with the rest remaining at the end of the term, to be settled with a pre-agreed repayment vehicle.
Head to our part-and-part mortgage calculator hub where you will find a free calculator that can work out the repayments on a part-and-part mortgage for you.