calculator

What it really costs
each month

Property price£950,000

Deposit£237,500 · 25%

Term25 years

yrs

Interest rate4.60%

Monthly extras

Service charge

Ground rent

Insurance

Monthly payment£4,289

Capital and interest£4,001

Service charge£250

Buildings insurance£38

Loan amount£712,500

Loan to value75%

Total interest£487,757

Total repaid£1,200,257

What you still owe£712,500 paid down over 25 years

YEAR 1YEAR 13YEAR 25

Year	Capital paid	Interest paid	Balance
1	£15,561	£32,450	£696,939
2	£16,292	£31,719	£680,648
3	£17,057	£30,953	£663,591
4	£17,859	£30,152	£645,732
5	£18,698	£29,313	£627,034
6	£19,576	£28,434	£607,458
7	£20,496	£27,515	£586,963
8	£21,459	£26,552	£565,504
9	£22,467	£25,543	£543,037
10	£23,522	£24,488	£519,515
11	£24,628	£23,383	£494,887
12	£25,785	£22,226	£469,103
13	£26,996	£21,014	£442,107
14	£28,264	£19,746	£413,842
15	£29,592	£18,418	£384,250
16	£30,983	£17,028	£353,268
17	£32,438	£15,572	£320,829
18	£33,962	£14,048	£286,867
19	£35,558	£12,452	£251,309
20	£37,228	£10,782	£214,081
21	£38,978	£9,033	£175,103
22	£40,809	£7,202	£134,295
23	£42,726	£5,284	£91,569
24	£44,733	£3,277	£46,835
25	£46,835	£1,175	£0

read the small print

What the number quietly assumes

read the small print

What the number quietly assumes

Repayment, not interest-only

The figure assumes a capital repayment mortgage. An interest-only deal looks cheaper each month and leaves the whole loan outstanding at the end.

One rate for the whole term

Almost nobody holds one rate for 25 years. The sensible test is whether the payment still works two or three points higher.

Stamp duty sits outside this

So do legal fees, survey and moving costs. On a purchase at this level they routinely add up to more than a year of payments.

Lenders do their own sums

Affordability models differ by lender and move with the base rate. Treat this as the shape of the thing, not a decision in principle.

Repayment, not interest-only

The figure assumes a capital repayment mortgage. An interest-only deal looks cheaper each month and leaves the whole loan outstanding at the end.

One rate for the whole term

Almost nobody holds one rate for 25 years. The sensible test is whether the payment still works two or three points higher.

Stamp duty sits outside this

So do legal fees, survey and moving costs. On a purchase at this level they routinely add up to more than a year of payments.

Lenders do their own sums

Affordability models differ by lender and move with the base rate. Treat this as the shape of the thing, not a decision in principle.

questions

What people ask
before they borrow

If yours is not here, our broker will answer it on a ten-minute call. No obligation, and no product pitch at the end of it.

Most lenders cap it near four and a half times income, but the real number depends on your outgoings, credit commitments and how the deposit is funded. A broker can tell you inside a day, rather than after a rejection.

Rates step down at 90%, 85%, 80%, 75% and 60% loan to value. Crossing from 76% to 75% can be worth several thousand pounds over a fix, so it is worth checking before you commit the extra.

A two-year fix costs less and puts you back in the market sooner. A five-year fix costs more and buys certainty. The question is not which rate is lower today, but which one you could still afford if rates moved against you.

Stamp duty, legal fees, survey, broker fee and moving costs. On a London purchase they routinely add up to more than a year of payments, and none of them can be added to the mortgage.

Most fixed deals allow 10% of the balance each year without penalty. Overpaying early is disproportionately effective, because in the first years almost all of the payment is interest rather than capital.

Two to six weeks, and it varies more by lender than by borrower. We work backwards from the date the transaction needs the money, and hold a rate as insurance while the search continues.