Calculate mortgage payments and see how overpayments can save you money
| Monthly Payment: | $1,334 |
| Total Principal: | $240,000 |
| Total Interest: | $160,199.38 |
| Total Amount Paid: | $400,199.38 |
| Loan to Value (LTV): | 80.0% |
A mortgage is a loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest. The property serves as collateral to secure the loan.
Enter your property value, deposit amount, interest rate, and term to calculate your monthly payments and total costs. The mortgage amount is automatically calculated as the difference between the property value and your deposit. You can also add overpayments to see how they affect your mortgage term and total interest paid.
Loan to Value (LTV) is the ratio of your mortgage amount to the property's value, expressed as a percentage. A lower LTV generally means better mortgage rates and terms. Lenders typically offer their best rates for LTVs below 60%, with higher rates as the LTV increases. Most lenders cap the maximum LTV at 90-95%, requiring at least a 5-10% deposit.
Fixed rate mortgages maintain the same interest rate for a set period (typically 2-10 years), providing payment stability. Variable rate mortgages have interest rates that can change, usually in response to the central bank's base rate. While variable rates may start lower, they carry the risk of increasing if interest rates rise.
Making overpayments on your mortgage can significantly reduce the total interest paid and shorten your mortgage term. Even small regular overpayments can lead to substantial savings over the life of the loan. Our calculator shows how much time and money you can save with different overpayment strategies.
Many mortgages have early repayment charges (ERCs) if you pay off too much during a fixed or discounted period. Typically, lenders allow overpayments of up to 10% of the outstanding balance each year without penalties. Check your mortgage terms before making substantial overpayments.
This calculator helps you understand potential costs, but actual mortgage availability depends on your credit history, income, and other factors. Always compare offers from multiple lenders to find the best deal.