Mortgage Repayment Calculator
Monthly payment, total interest, total cost and LTV for a repayment or interest-only mortgage — with the Bank of England's June 2026 average quoted rates to hand, and a day-rate borrowing estimator for contractors.
Calculate your mortgage
Total purchase price of the property.
Loan = price × (100% − deposit%). £30,000
Monthly rate = annual rate ÷ 12. At 90.0% LTV the June 2026 average 2-year fix was 5.19%.
300 monthly payments.
| Item | Value |
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These are the Bank of England's published average quoted rates across UK lenders, not quotes for you. Each is labelled with the month it refers to. Press Load to drop one into the calculator.
| Product | Rate | A year earlier | Load |
|---|---|---|---|
| 2-year fix, 75% LTV · Jun 2026 | 4.81% | 4.28% Jun 2025 | |
| 5-year fix, 75% LTV · Jun 2026 | 4.65% | 4.26% Jun 2025 | |
| 2-year fix, 90% LTV · Jun 2026 | 5.19% | 4.80% Jun 2025 | |
| 2-year fix, 95% LTV · Jun 2026 | 5.56% | 5.10% Jun 2025 | |
| 2-year variable, 75% LTV · Jun 2026 | 4.14% | 4.52% Jun 2025 | |
| Buy-to-let 2-year fix, 75% LTV · Jun 2026 | 4.30% | 3.85% Jun 2025 | |
| Standard variable rate (SVR) · Jun 2026 | 6.60% | 6.98% Jun 2025 | |
| Effective rate on new lending · May 2026 | 4.22% | 4.08% Apr 2026 | |
| Bank Rate · held 18 Jun 2026 (7–2) | 3.75% | 4.25% Jun 2025 | reference |
Some lenders will underwrite a contractor on the contract day rate rather than on company accounts or PAYE payslips, annualising the rate over an assumed number of working weeks. The annualisation basis, the income multiple and the trading history required are set by each individual lender — so every figure below is your assumption, not any lender's criteria. Use it to sanity-check a price, then get a broker who places contractor cases to confirm what is actually available.
Lenders annualise over different numbers of weeks. Enter the figure yours uses.
At your current deposit, rate, term and mortgage type. Click a row to load that price.
| Property price | Loan | Monthly payment | Copy |
|---|
A repayment mortgage uses the standard amortisation formula M = P × r × (1+r)n ÷ ((1+r)n − 1), where P is the loan, r is the monthly rate (the annual rate ÷ 12) and n is the number of months. Each payment covers that month's interest first, and whatever is left reduces the balance — so early payments are mostly interest and later ones mostly capital.
Interest-only is simply P × r each month. The balance never falls, so the entire loan is still owed on the last day of the term and has to be repaid from something else.
A rate your broker has actually quoted, if you have one. Otherwise use the table above as a reference point: in June 2026 the Bank of England's average quoted rates were 4.81% for a 2-year fix at 75% LTV, 4.65% for a 5-year fix at 75% LTV, 5.19% at 90% LTV and 5.56% at 95% LTV. The average SVR was 6.60% and Bank Rate was 3.75%.
Those are market averages, not offers, and the figure a contractor is quoted depends on the lender's view of the contract as much as on the LTV. Note also that the rate is not the same thing as the APRC a lender must publish: the APRC folds fees and the reversion rate into one lifetime figure, whereas monthly payments are worked out from the plain annual rate ÷ 12, which is what this calculator does.
Some lenders will assess a contractor on the contract day rate instead of two or three years of company accounts or PAYE payslips, annualising the day rate over an assumed number of working weeks. That route matters if you draw a small salary and dividends, because accounts-based underwriting can read a tax-efficient PSC as a low income.
Which lenders do it, how many weeks they annualise over, the income multiple they apply and how much trading history or contract length they want are all set lender by lender — we do not list them here because those criteria change constantly and a stale list is worse than none. Use a broker who places contractor cases, and take the day-rate estimator above as your own arithmetic rather than anyone's lending policy.
LTV (loan-to-value) is the loan divided by the property price, as a percentage. Lenders price in LTV bands, so the same borrower pays materially more at 90% or 95% than at 75%. In June 2026 the average 2-year fix was 4.81% at 75% LTV, 5.19% at 90% and 5.56% at 95% — about three quarters of a percentage point between the top and bottom of that range.
Rarely. Most UK mortgages fix for two or five years and then revert to the lender's standard variable rate, which averaged 6.60% in June 2026 — well above any of the fixed rates in the table. This calculator holds the rate you enter for the whole term, so read anything past the end of your fixed period as an illustration and re-run it when you remortgage.
March and April 2026 are the warning: the average 2-year fix at 75% LTV moved from 3.97% to 5.14% in a matter of weeks with no change in Bank Rate. A payment that is comfortable at today's rate is worth re-testing a couple of points higher.
The Bank of England publishes average quoted rates down to 95% LTV, so 5% deposit products exist — they simply cost more, at 5.56% against 4.81% at 75% LTV in June 2026. The deposit a particular lender wants from a particular borrower is its own decision, and contractors are sometimes asked for more early in a contract. Change the deposit percentage above to see what each band does to the monthly payment.
About this mortgage calculator
This free UK mortgage calculator estimates the monthly payment, total interest and total cost of a repayment or interest-only mortgage. Enter the property price, deposit percentage, annual interest rate and term; everything updates as you type.
How the payment is worked out
- Repayment — the amortisation formula, M = P × r × (1+r)n ÷ ((1+r)n − 1), with r the annual rate ÷ 12 and n the term in months. Total paid = M × n; total interest = total paid − the loan.
- Interest-only — the monthly payment is loan × r. Nothing comes off the balance, so total interest = M × n and the whole loan is still outstanding at the end. The calculator shows that capital as a separate line and adds it into the total cost, which is where most interest-only sums go wrong.
- Rounding — the monthly payment is rounded to the penny first, then multiplied out, so the payment on screen times the number of months equals the total on screen.
Where the rates come from
Every rate on this page is a Bank of England published average for a stated month — the household quoted-rate series for fixes, variables, buy-to-let and SVR, and the Money and Credit release for the effective rate on new lending. They describe the market, not an offer to you, and are averages across lenders with very different attitudes to contractor income. CPI was 2.6% in the year to June 2026 for context.
Contractors specifically
The arithmetic of a mortgage does not care how you are paid; the underwriting does. A limited-company contractor drawing a modest salary plus dividends can look thin on an accounts-based assessment while comfortably servicing the payment, which is why some lenders will work from the day rate instead. That is an underwriting route, not a better interest rate — the rate still follows the LTV band and the product. If you are inside IR35 and paid through an umbrella, you are on PAYE payslips and are usually assessed as employed, though gaps between assignments still get looked at.
This calculator provides arithmetic calculations only and is not mortgage advice. Rates are published market averages, not quotes. Check the current series at the Bank of England quoted household interest rates, and buying costs against HMRC Stamp Duty Land Tax guidance or a qualified adviser.