Monthly payments, total interest & overall mortgage cost
£
%
Mortgage Breakdown
Loan amount (principal)—
Total interest paid—
Total amount repaid—
Monthly repayment—
🏦 This calculator shows repayment (capital & interest) mortgage payments. Interest-only mortgages have lower monthly payments but don't reduce the capital balance.
How Mortgage Repayments Are Calculated
Monthly mortgage repayments are calculated using the loan amount, annual interest rate and mortgage term. In the early years more of each payment goes towards interest; as the balance reduces, more goes towards capital.
Current UK Mortgage Rates 2026
UK mortgage rates have remained elevated following the Bank of England base rate rises. The average 2-year fixed rate is around 4.5–5.5% and the average 5-year fixed rate is around 4.2–5.0% depending on loan-to-value ratio. Always compare rates from multiple lenders.
How Much Can I Borrow?
Most UK lenders will lend between 4 and 4.5 times your annual income. Some lenders offer up to 5.5 times income for higher earners or professionals. The amount also depends on your deposit size, credit score and existing financial commitments.
Types of UK Mortgages
Fixed rate — your interest rate stays the same for a set period (typically 2, 3 or 5 years). Tracker — tracks the Bank of England base rate. Variable rate — can change at any time. Most UK buyers choose fixed rate mortgages for payment certainty.
Frequently Asked Questions
Most UK lenders will offer between 4 and 4.5 times your annual gross salary. For a £40,000 salary that's £160,000–£180,000. Some lenders offer up to 5–5.5 times salary for higher earners or certain professions. The actual amount depends on your deposit size, credit score, existing debts and monthly outgoings assessed through affordability checks.
In 2026, average 2-year fixed mortgage rates are approximately 4.3–5.0% and average 5-year fixed rates are approximately 4.0–4.7%, depending on your loan-to-value (LTV) ratio. Those with larger deposits (40%+ LTV) access the best rates. Rates have fallen from 2023 peaks but remain higher than pre-2022 levels.
A repayment mortgage means each monthly payment covers both interest and a portion of the capital, so the debt reduces over time and is fully repaid at the end of the term. An interest-only mortgage means you only pay the interest each month — the capital balance doesn't reduce. You need a separate plan to repay the capital at the end of the term.
Most lenders require a minimum 5% deposit, though 10% or more gives access to significantly better rates. First-time buyers can access government schemes including the Mortgage Guarantee Scheme (5% deposit) and shared ownership. A 40% deposit typically unlocks the very best mortgage rates available.
Overpaying your mortgage reduces the outstanding balance, cuts the total interest you pay and shortens your mortgage term. Most lenders allow overpayments of up to 10% of the outstanding balance per year without an early repayment charge. Use a mortgage overpayment calculator to see how much you can save — even small regular overpayments have a significant effect over time.