How much will you pay? Use our mortgage payment calculator.
How much will you pay? Use our mortgage payment calculator.
Introduction.
With the mortgage market changing all the time, it can be useful to get a picture of how much your monthly mortgage payment will be, particularly if mortgage interest rates increase.
Our Free Mortgage Payment Calculator, provided by Money Helper (formerly known as the Money Advice Service) looks at your home value, deposit, mortgage term and interest rate to calculate what your mortgage payment will be on both a repayment and interest-only basis.
How to use the Mortgage Payment Calculator.
If you are looking at buying a home or moving house:
Under 'Price of the property is', input the amount you will be paying for the house (or your budget figure).
Input the cash deposit you have in the 'Deposit available is' field. If you are moving home, input the equity in your current home.
Click 'Next'.
The mortgage payment calculator will now show some repayment figures at the top and you can switch between a repayment mortgage and an interest-only mortgage using the tabs. However, you will need to adjust the mortgage term and interest rate at the bottom of the mortgage payment calculator to get an accurate estimate for your circumstances.
Set 'Mortgage term is' to the period of time you want the mortgage to be paid back over (also known as the loan term). This is a key variable in how much your monthly repayment will be. The longer the repayment period is, the lower your monthly payment will be, but you will also pay more in interest over the long term.
Set 'Interest rate is' to a figure that is in line with a current mortgage rate to update the monthly mortgage repayment figure ( Moneyfacts has a table of the latest market rates ). You can now adjust the interest rate to see how your mortgage payment will be affected by an increase in interest rates.
Use the mortgage calculator to find out how much your monthly mortgage payment will be at 3%, 6% and 9% over your current rate and consider if this is affordable if interest rates continue to rise. The higher figures will paint a pretty bleak picture but don't forget that in the early 2000s, mortgage interest rates were around 7%.
If you are thinking about a remortgage:
Although the headings in this mortgage repayment calculator are phrased as if you are buying a new house, if you want to calculate how much the payment will be if you remortgage:
Under 'Price of the property is', input the amount left to pay on your existing mortgage (the outstanding balance).
Leave 'Deposit available is' blank (e.g. £0).
Click 'Next'.
The mortgage payment calculator will now show some repayment figures at the top and you can switch between a repayment mortgage and an interest-only mortgage using the tabs. However, you will need to adjust the mortgage term and interest rate at the bottom of the mortgage payment calculator to get an accurate estimate for your circumstances.
Set 'Mortgage term is' to the original period of time you want the new mortgage to be paid back over. This is a key variable in how much your monthly repayment will be. The longer the repayment period is, the lower your monthly payment will be, but you will also pay more in interest over the long term.
Set 'Interest rate is' to a figure that is in line with the current mortgage rates from a mortgage lender to update the monthly mortgage repayment figure ( Moneyfacts has a table of the latest market rates ). You can now adjust the interest rate to see how your mortgage payment will be affected by an increase in interest rates.
Use the mortgage calculator to find out how much your mortgage payment will be at 3%, 6% and 9% over your current rate and consider if this is affordable if interest rates continue to rise. The higher figures will paint a pretty bleak picture but don't forget that in the early 2000s, mortgage interest rates were around 7%.
If you are currently on a variable rate mortgage:
Although the headings in this mortgage payment calculator are phrased as if you are buying a new house, if you want to calculate how much the payment will be on an existing mortgage if interest rates increase:
Under 'Price of the property is', input the total amount your mortgage loan was originally for (e.g. £400,000).
Leave 'Deposit available is' blank (e.g. £0).
Click 'Next'.
The mortgage payment calculator will now show some repayment figures at the top and you can switch between a repayment mortgage and an interest-only mortgage using the tabs. However, you will need to adjust the mortgage term and interest rate at the bottom of the calculator to get an accurate estimate for your circumstances.
Set 'Mortgage term is' to the original period of time your current mortgage was to be paid back over. Even if you have a 25-year mortgage and you only have 20 years left, leave it as the original figure of 25 years, otherwise, the calculator will try to spread the full loan over a shorter period and the figures will be inflated.
Set 'Interest rate is' to your current interest rate to make sure the numbers align with what you are currently paying. Once you're showing the correct mortgage payment, you can now adjust the interest rate to see how your mortgage payment will be affected.
Use the mortgage calculator to find out how much your mortgage payment will be at 3%, 6% and 9% over your current rate and consider if this is affordable if interest rates continue to rise. The higher figures will paint a pretty bleak picture but don't forget that in the early 2000s, mortgage interest rates were around 7%.
Do you need to speak to a mortgage broker?
Wherever you are in the country, if you are looking to buy your first home, move house, remortgage or just need some expert guidance with your mortgage, you can speak to one of our friendly Mortgage Brokers in Tunbridge Wells for free.
Locally, we serve clients across Kent including Ashford, Maidstone, Sevenoaks and Tonbridge. In East Sussex we have clients in Bexhill, Crowborough, Eastbourne, Hastings, Heathfield and Uckfield.
Don’t forget, this page offers information about mortgages and should not be taken as personal advice. Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.