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    Finance Hub · A guided walk-through

    Let's work out your mortgage.

    Your monthly mortgage depends on the price, your deposit, the interest rate and the term. As a guide, a £290,000 home with a 10% deposit over 25 years at 4.5% costs about £1,450 a month on a repayment basis, and UK lenders typically cap borrowing at around 4.5× your income. The tools below let you model payment type, affordability, government schemes and overpayments for any property.

    Last reviewed · figures use 2025/26 UK rates.

    We'll move through the key questions in plain English — what you'll pay, what you'll repay, and how exposed you are to rate changes. Tweak any input on the right and the answers update.

    Download PDF report →

    Before we start — three things you might need.

    We've vetted these. Take or leave.

    Which question are you exploring?

    Are you paying down the loan, or just the interest?

    We're showing repayment figures — your monthly payment covers both interest and a chunk of capital, so the loan actually shrinks.

    So what would you pay each month?

    £1,654

    Monthly payment

    For every month for the next 25 years, against a £297,500 loan at 4.5%. That's about 47% of a £3,500 take-home — around the 50% rule most lenders apply.

    And what does that add up to, in total?

    £297,500

    borrowed today

    £496,080

    paid back over 25 years

    £198,580

    of that is pure interest

    Put plainly: you'll pay back roughly 67% extra on top of what you borrow. That's the cost of buying with a mortgage rather than cash.

    Will a lender actually give you this much?

    On a typical 4.5× income multiple, you'd need to earn at least £66,111 a year for this to clear underwriting. Your inputs put household income at £42,000about £24,111 short of the standard cut-off.

    Stretch on 4.5×Fine on 5.5× lenders

    Want to look closer? Here are four questions worth asking.

    Your situation

    Drag to tweak
    Property price£350,000
    £50,000£5,000,000
    Deposit£52,500

    85.0% loan-to-value

    £5,000£5,000,000
    Interest rate4.5%
    0.5%10.0%
    Term25 yrs
    5 yrs35 yrs
    Monthly income£3,500
    £0£20,000

    We compute live. Move any slider and the answers in the column on the left update.

    Deep dive · 01 · Remaining balance

    How much will I owe in five years?

    £261,377

    Five years in, you'd have paid down about £36,123 of the £297,500 loan — roughly 12% of the capital. Most of your monthly payment in the early years goes on interest, not principal.

    Outstanding balance over the 25-year term

    £0£100k£200k£300k0510152025Y16 · halfwayY5 · £261,377

    And in ten years?

    £216,159

    Ten years in you'd still owe £216,159 — only 27% of capital paid down. The curve really steepens after year 15 or so, when each pound starts going further against principal.

    When do I cross the halfway mark?

    Year 16

    You cross it just after your 16-year mark — earlier than you'd expect on a 25-year term, because interest is heavier early on and capital catches up exponentially.

    One way to bring these numbers down

    Overpaying by even £100/mo shaves roughly 2 years 5 months off a repayment term — see the Overpayment tab for the full picture.

    Deep dive · 02 · Capital vs interest

    Am I paying down the loan or just paying interest?

    Annual payment split over the 25-year term

    £0£5k£10k£15k£20k0510152025
    Capital Interest
    Year 1£6,591 capital · £13,253 interest
    Year 5£7,888 capital · £11,956 interest
    Year 10£9,874 capital · £9,969 interest
    Year 25 (final)£19,368 capital · £475 interest

    In year one, just £6,591 of your £19,843 annual payment goes on the loan — the rest is interest. By year 16, the split flips. By year 25, your final payments are almost all capital.

    Deep dive · 03 · Scenario comparison

    What if I changed something?

    MetricCurrentShorter term (20y)Bigger deposit (+£10k)Lower rate (-0.5%)
    Monthly£1,654£1,882£1,598£1,570
    Loan£297,500£297,500£287,500£297,500
    Total repaid£496,080£451,712£479,406£471,094
    Interest£198,580£154,212£191,906£173,594
    Income needed (4.5×)£66,111£66,111£63,889£66,111

    The shorter-term scenario costs £229 more per month but saves you £44,369 in interest over the loan's life. The bigger-deposit scenario saves £56 monthly and £6,675 in interest. The lower-rate scenario assumes you secure a 0.5%-better deal — realistic if your credit profile is strong or you're remortgaging.

    Deep dive · 04 · Rate stress test

    What happens if rates rise before I'm fixed?

    You're modelling against a 4.5% rate today. Most UK borrowers fix for 2 or 5 years — when that deal rolls off, the rate you remortgage onto is the open question. Here's the same £297,500 loan at three plausible rate steps.

    Today4.5%Your input rate
    £1,654

    Your baseline. Around the middle of the 50% affordability rule.

    +1% rise5.5%Lender stress test
    £1,827

    +£173 a month, +£2,080 a year. Now eating 52% of your take-home.

    +2% rise6.5%2022-style spike
    £2,009

    +£355 a month, +£4,262 a year. Now eating 57% of your take-home.

    +3% rise7.5%Worst-case scenario
    £2,198

    +£545 a month, +£6,539 a year. At this point you'd be paying 33% more than today and may need to lengthen the term or revisit the deposit.

    What's the simplest way to cap this risk?

    A 5-year fixed deal locks today's 4.5% until 2031. If rates settle 1% higher than today, you'd save £10,399 over those five years. The trade-off: you can't benefit if rates fall.

    What if my income hasn't kept up?

    On +3%, this mortgage would need household income of around £66,111 on a 4.5× multiple to pass underwriting again. We'd flag this scenario for an early conversation with a broker.

    Frequently asked

    How much mortgage can I afford in the UK?

    Most lenders cap borrowing at around 4.5 times your annual income, though affordability also depends on your outgoings, deposit and the interest rate. On a £40,000 salary that's roughly £180,000 — use the affordability tool to model your own numbers.

    What will my monthly mortgage payment be?

    It depends on the loan size, rate and term. As a guide, a £261,000 repayment mortgage (a £290,000 home with a 10% deposit) over 25 years at 4.5% costs about £1,450 a month. Interest-only is lower but never clears the balance.

    How much deposit do I need to buy a home?

    Usually a minimum of 5%, but 10–15% unlocks noticeably better interest rates and lower monthly payments. A larger deposit also reduces the total interest you pay over the life of the loan.

    Does overpaying my mortgage actually save money?

    Yes — overpayments come straight off the capital, so they cut both the interest you pay and the term. Even small regular overpayments can save thousands; the overpayment tool shows the saving for your loan.