Mortgage Calculator
Calculate monthly payments, total interest, and create an amortisation schedule for your home loan
Loan Details
Select your preferred currency
£
Total purchase price of the property
£
20.0% of home price
Initial payment amount (typically 10-20%)
£
Amount to be financed (Home Price - Down Payment)
%
Annual interest rate (APR)
years
Length of the mortgage (typically 15-30 years)
Additional Monthly Costs
£
/month
Monthly property tax amount
£
/month
Monthly home insurance premium
£
/month
Required if down payment is less than 20%
£
/month
Homeowners Association fees (if applicable)
Monthly Payment Breakdown
Enter loan details to calculate payments
Monthly payment breakdown will appear here
Loan Summary
Loan summary will appear here
Amortisation Schedule
Understanding Mortgages
How Mortgages Work
A mortgage is a loan secured by your property that allows you to purchase a home by paying a portion upfront (down payment) and borrowing the rest. You then repay the loan over time with interest.
Key Components
- Principal: The amount you borrow
- Interest: The cost of borrowing money
- Property Tax: Annual tax on property value
- Insurance: Protection for property and lender
- PMI: Insurance if down payment is less than 20%
Down Payment Impact
- Higher down payment: Lower monthly payments, less interest
- 20% or more: Avoid PMI requirements
- Lower down payment: Higher monthly costs, PMI required
- First-time buyers: May qualify for special programmes
Interest Rate Types
- Fixed Rate: Same rate for entire loan term
- Variable/ARM: Rate changes over time
- Interest-Only: Pay only interest initially
- Tracker: Follows Bank of England base rate
Loan Terms
- 15 years: Higher monthly payments, less total interest
- 25 years: Balanced payments and interest
- 30 years: Lower monthly payments, more total interest
- Shorter terms: Save money long-term
Tips for Better Rates
- Improve credit score: Better rates for higher scores
- Larger down payment: Shows lender commitment
- Shop around: Compare offers from multiple lenders
- Consider points: Pay upfront to lower rate
- Stable income: Demonstrates ability to repay