Mortgage Calculator UK — Calculate Your Monthly Mortgage Payment
Free UK mortgage calculator. Calculate monthly repayments for residential and buy-to-let mortgages. Compare fixed variable and tracker rates for 2026.
Buying a home in the UK is one of the biggest financial commitments you will ever make. With average house prices exceeding £290000 nationally and over £520000 in London understanding your monthly mortgage repayment before making an offer is essential. UK mortgages typically run for 25-35 years with interest rates varying between fixed tracker and variable options. Our calculator helps you compare different scenarios to find the most affordable option for your budget.
How much can I borrow on £50000 salary UK?
On a £50000 salary UK lenders typically offer 4-4.5x your income meaning you could borrow £200000-£225000. With a partner earning £30000 jointly you could borrow £340000-£360000. Your actual borrowing depends on credit score existing debts and the deposit amount. Most lenders also stress-test at higher rates to ensure affordability.
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Mortgage Calculator
How This Calculator Works
This calculator uses the standard reducing balance method to compute your monthly payments. The formula takes your loan principal, annual interest rate, and tenure to calculate the exact Equated Monthly Installment (EMI) or payment amount. Each monthly payment consists of two components — principal repayment and interest charges. In the early months, a larger portion goes toward interest, but as your outstanding balance decreases, more of each payment reduces the principal. This is why making extra prepayments in the early years of your loan saves significantly more interest than prepaying later.
Tips to Get the Best Loan Deal
Always compare the Annual Percentage Rate (APR) rather than just the advertised interest rate, as APR includes processing fees, insurance charges, and other costs. Negotiate your processing fee — most banks will reduce or waive it if you ask. Choose the shortest tenure your budget allows since longer tenures dramatically increase total interest paid. Check prepayment terms before signing — RBI mandates zero prepayment penalty on floating rate home loans in India. Finally, maintain a credit score above 750 to qualify for the best rates from any lender.
Key Information
| Parameter | Details |
|---|---|
| Average UK Mortgage Rate (Fixed 2yr) | 4.5% - 5.5% (2026) |
| Average UK Mortgage Rate (Fixed 5yr) | 4.2% - 5.0% (2026) |
| Stamp Duty Threshold | £250000 (England) |
| Maximum Loan-to-Value | 90% - 95% (first-time buyers) |
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Use Calculator NowFrequently Asked Questions
How much can I borrow on £50000 salary UK?
On a £50000 salary UK lenders typically offer 4-4.5x your income meaning you could borrow £200000-£225000. With a partner earning £30000 jointly you could borrow £340000-£360000. Your actual borrowing depends on credit score existing debts and the deposit amount. Most lenders also stress-test at higher rates to ensure affordability.
What is stamp duty on a £300000 house?
For a £300000 property in England in 2026 the stamp duty for a standard buyer is £2500 (0% on first £250000 then 5% on £250001-£925000). First-time buyers pay £0 stamp duty on properties up to £425000 making significant savings. Scotland and Wales have different rates and thresholds.
Fixed vs variable mortgage which is better UK?
Fixed rate mortgages give you payment certainty for 2-5 years protecting against rate rises. Variable or tracker mortgages start lower and fall if the Bank of England base rate drops but can increase unpredictably. In 2026 with rates potentially declining many borrowers choose a 2-year fix planning to remortgage when rates drop further.
What is a fixed vs variable rate mortgage?
A fixed rate locks your interest rate for 2-5 years, giving payment certainty. A variable (tracker) rate moves with the Bank of England base rate and can be lower initially but carries risk of increases. Most UK buyers choose a 2 or 5 year fix then remortgage when the fixed period ends.
How much deposit do I need for a UK mortgage?
The minimum deposit is typically 5-10% of the property value. A 10% deposit opens more competitive rates, and 25% or more gets the best deals. First-time buyers may access government schemes like Shared Ownership with smaller deposits. The bigger your deposit, the lower your LTV ratio and monthly payments.
What are the stamp duty rates for 2025-26?
Post-April 2025 SDLT rates: 0% on first £125,000, 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1,500,000, and 12% above £1.5 million. First-time buyers pay 0% up to £300,000 and 5% on the portion between £300,001-£500,000 (relief lost above £500,000).
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Last updated: March 2026