UK mortgage repayments in pounds, including interest-only and stamp duty estimates.
A repayment mortgage gradually reduces the outstanding balance over the term: early payments are mostly interest, later ones mostly capital. An interest-only mortgage keeps payments lower but the full capital must be repaid at the end — typically via sale or a separate investment vehicle. Stamp Duty Land Tax (SDLT) is paid on completion; first-time buyers receive relief on properties up to £625,000, while additional-property purchasers pay a 3% surcharge.
Monthly repayment payment
Monthly payment = Loan × r(1+r)^n / [(1+r)^n − 1]
Interest-only monthly payment
Monthly payment = Loan × monthly rate
SDLT is a tax on residential property purchases in England and Northern Ireland. Scotland has the Land and Buildings Transaction Tax (LBTT) and Wales has the Land Transaction Tax (LTT) — this calculator uses the England/N. Ireland SDLT bands. Rates increase in tiers: 0% on the first £250,000, 5% on £250k–£925k, and so on.
On a repayment mortgage you pay both interest and principal each month, owning the property outright at the end. On interest-only, you pay only the interest each month and the full loan must be repaid when the term ends — usually by selling the property. Interest-only has lower monthly payments but much higher total cost and requires a credible repayment strategy.
Lenders typically offer their best rates at 60% LTV (40% deposit). Rates step up at 75%, 80%, 85%, and 90% LTV. Above 90% LTV, products are scarce and expensive, and you'll pay higher rates and potentially mortgage insurance. A 10% deposit (90% LTV) is the typical minimum for most mainstream lenders.
The mortgage payment calculation applies anywhere. However the stamp duty estimate uses England/N. Ireland SDLT bands. In Scotland, enter your LBTT figure manually; in Wales, enter your LTT figure. The LBTT and LTT calculators on the respective Revenue Scotland and Welsh Revenue Authority sites provide exact figures.