Enter your property price, deposit, term, and rate to see your monthly payment, total interest, and a full year-by-year breakdown. Once you have your monthly payment, use the amortisation schedule calculator to see exactly how each payment splits between capital and interest over the full term.
On a £240,000.00 mortgage over 25 years at 4.5%, you would pay £1,334.00 a month and £160,199.38 in interest.
Show your working
If the term were different
| Term | Monthly | Total interest |
|---|---|---|
| 20 years | £1,518.36 | £124,406.04 |
| 25 years | £1,334.00 | £160,199.38 |
| 30 years | £1,216.04 | £197,776.11 |
Same loan and rate — a shorter term costs more each month but far less overall.
Assumptions
- A repayment mortgage at a fixed rate for the whole term.
- Interest is charged monthly on the outstanding balance.
- Product fees, insurance, ground rent and stamp duty are excluded.
- No overpayments, payment holidays or rate changes.
| Year | Opening Balance | Annual Payment | Interest | Principal | Closing Balance |
|---|
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Mortgage facts
- What are the monthly repayments on a £240,000 mortgage?
- £1,334.00 a month over 25 years at 4.5%, on a repayment basis.
- What is loan-to-value and why does it matter?
- The loan as a share of the property value. Borrowing £240,000 against £300,000 is 80% LTV; lower LTV usually unlocks better rates.
- How much interest is paid over the full term?
- £160,199.38 — about two-thirds of the amount borrowed, at 4.5% over 25 years.
- Does a shorter term cost less overall?
- Yes. A shorter term raises the monthly payment but cuts total interest, because the balance is cleared over fewer months.
Repayment vs Interest-Only
With a repayment mortgage, each monthly payment covers some of the loan (principal) plus interest. The balance falls to zero by the end of the term. This is the most common type for residential purchases.
With an interest-only mortgage, monthly payments cover just the interest. The original loan balance stays the same throughout. At the end of the term, you must repay the full amount — usually by selling the property, using savings, or switching to a repayment deal. Lenders typically require proof of a credible repayment plan before approving interest-only.
Loan-to-Value (LTV) and Rates
LTV is the percentage of the property value you're borrowing. A lower LTV generally means access to cheaper mortgage rates. Typical rate tiers:
| LTV | Typical Band | Notes |
|---|---|---|
| ≤ 60% | Best available rates | Substantial deposit or high equity |
| 60–75% | Very competitive | Common for remortgages |
| 75–85% | Standard | Most first-time buyers |
| 85–90% | Higher rate | 5–10% deposit |
| 90–95% | Highest rate; limited lenders | 5% deposit; sometimes govt. scheme |
| > 95% | Rarely available | Usually requires a guarantor |
Tips for Reducing Your Mortgage Cost
Save a larger deposit
Dropping from 90% to 75% LTV can reduce your interest rate by 0.5–1.5%, saving thousands over the full term.
Overpay when you can
Even small regular overpayments reduce the principal faster, cutting years off the term and significantly reducing total interest.
Remortgage at the end of your deal
Fixed-rate deals typically last 2–5 years. Reverting to the lender's standard variable rate (SVR) is almost always more expensive — shop around before your deal ends.
Consider a shorter term
A 20-year term instead of 25 increases monthly payments but can save tens of thousands in total interest. Use this calculator to compare.
Related calculations
Your deposit decides the rate: the LTV calculator shows which band you reach and what it would take to reach the next. To compare several rates side by side use the loan payment table, and to see what overpaying saves use the mortgage payoff calculator.
Worked Example
A £300,000 repayment mortgage at 4.5% over 25 years gives a monthly payment of £1,662. Over the full term you repay £498,700 in total — meaning £198,700 is interest. Switching to a 20-year term raises the monthly payment to £1,899 but cuts total interest to £155,800, a saving of nearly £43,000.
Important Notes
This calculator gives indicative figures only and assumes a constant interest rate for the full term. In practice, most mortgage deals have fixed rates for an initial period (e.g., 2 or 5 years) after which the rate changes. Your actual monthly payment will vary when your deal ends or if you remortgage.
The calculator does not account for mortgage arrangement fees, solicitor costs, or Stamp Duty Land Tax (SDLT). Always seek independent financial advice before making mortgage decisions.
Evidence & Methodology
How This Page Is Grounded
Method
Uses the standard fixed-rate repayment formula to estimate monthly principal and interest, then iterates the balance for the amortisation schedule.
Important limitation: Assumes a constant rate and regular monthly payments; fees, insurance and taxes are excluded unless explicitly entered.
Primary Sources
- Mortgage repayment calculator MoneyHelper
- How mortgage amortization works Consumer Financial Protection Bureau
Quality Checks
Formula, zero-interest branch and final-balance rounding checked against worked examples.
See how sources are selected and corrections are handled in our Editorial & Calculation Methodology, and which automated checks this page has to pass in How We Test.
Frequently Asked Questions
What is the difference between a repayment mortgage and an interest-only mortgage?
With a repayment mortgage, each monthly payment covers principal plus interest so the balance falls to zero by the end of the term. With an interest-only mortgage, payments cover only the interest and the full loan amount must be repaid separately at the end.
How does loan-to-value (LTV) affect my mortgage rate?
LTV is the percentage of the property value you are borrowing — a lower LTV generally means access to cheaper mortgage rates. Use the mortgage calculator above to see how increasing your deposit reduces your monthly payment and total interest.
How can I reduce the total interest on my mortgage?
Making regular overpayments reduces the principal faster, cutting years off the term and significantly reducing total interest paid. Use the mortgage calculator to compare different overpayment amounts or a shorter term to see the long-term savings.