How much deposit do I need for a UK mortgage?

Most UK lenders require a minimum deposit of 5-10% of the property value. A larger deposit (15-25%) typically gets you better interest rates. The loan-to-value (LTV) ratio is the key factor lenders consider.

What happens if interest rates rise?

If you have a variable or tracker rate mortgage, your monthly payments will increase when the Bank of England base rate rises. Fixed-rate mortgages protect you from rate increases during the fixed period, but you may face higher rates when you remortgage.

Mortgage Repayment Calculator

Calculate monthly mortgage repayments for repayment and interest-only mortgages. See total interest paid over the term.

Last updated: April 2026 · Source: Bank of England — Base rate

Mortgage Type

Mortgage Amount

Interest Rate (%)

Term (years)

Monthly Payment

£1,389.58

Total Repaid

£416,874.36

Total Interest

£166,874.36

Borrowed

£250,000.00

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

A repayment mortgage calculator uses the standard amortisation formula to calculate your fixed monthly payment. The formula accounts for the loan amount, annual interest rate and loan term to produce a payment that covers both interest and capital repayment, so the loan is fully repaid by the end of the term.

With a repayment mortgage, early payments are mostly interest, but over time the capital portion grows. An interest-only mortgage charges only the interest each month, leaving the full capital balance due at the end. This calculator supports both types and shows the total amount repaid over the life of the loan.

The calculation assumes a fixed interest rate throughout the term. In practice, most UK mortgages are fixed for 2-5 years before reverting to the lender's standard variable rate (SVR). Use the mortgage comparison features to compare different rates and terms side by side.

Example: £250,000 mortgage at 4.5% over 25 years

Monthly repayment: £1,389.58
Total repaid over 25 years: £416,874
Total interest paid: £166,874
Interest-only alternative: £937.50/month (capital still owed at end)

Source: Bank of England — Base rate

Frequently Asked Questions

What is the difference between repayment and interest-only mortgages?: With a repayment mortgage, your monthly payments cover both interest and a portion of the capital, so the loan is fully repaid by the end of the term. With interest-only, you pay only the interest each month and must repay the full capital at the end of the term.
How much deposit do I need for a UK mortgage?: Most UK lenders require a minimum deposit of 5-10% of the property value. A larger deposit (15-25%) typically gets you better interest rates. The loan-to-value (LTV) ratio is the key factor lenders consider.
What happens if interest rates rise?: If you have a variable or tracker rate mortgage, your monthly payments will increase when the Bank of England base rate rises. Fixed-rate mortgages protect you from rate increases during the fixed period, but you may face higher rates when you remortgage.