What is Loan-to-Value (LTV) and why does it matter in the UK?

LTV is the percentage of the property value you are borrowing. For instance, a £50,000 deposit on a £250,000 house is an 80% LTV. Lenders offer significantly lower interest rates for lower LTV bands (e.g. 60% or 75% LTV) because they carry less risk.

How is UK Stamp Duty (SDLT) calculated?

SDLT in England and Northern Ireland operates on tiered thresholds. Standard rates: 0% up to £250k, 5% on £250k–£925k, 10% on £925k–£1.5m, and 12% above £1.5m. First-time buyers benefit from a £425,000 zero-rate threshold on homes up to £625,000.

What is the difference between Repayment and Interest-Only mortgages?

With a repayment mortgage, each monthly payment covers both the interest and a portion of the original loan balance, ensuring the loan is completely paid off by the end of the term. With an interest-only mortgage, you only pay the monthly interest; the entire original capital must be repaid at the end of the term.

Mortgage

↵ to calculate

Mortgage Calculator UK — British Pound Repayment & Stamp Duty

Free UK mortgage calculator in British Pounds (£). Calculate repayment vs. interest-only monthly mortgage payments, Stamp Duty Land Tax (SDLT), and loan-to-value (LTV).

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How to use this calculator

👉 Fill in the boxes below and your answer appears instantly — no maths needed, we do it all for you! 🎉

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In plain English — what does this do?

🏠 You want to buy something big (like a house or car) but you don’t have all the money right now. A bank gives you the money today, and you pay it back little by little every month. This tool tells you ‘how much do I pay each month?’

📌 Direct Answer & Summary

The UK Mortgage Calculator calculates monthly mortgage costs in Great British Pounds (£ / GBP) for residential properties in England, Wales, Scotland, and Northern Ireland, supporting both capital repayment and interest-only mortgages with Stamp Duty Land Tax (SDLT).

🏡 Property Price (£)

💰 Cash Deposit (£)

75% LTV

📈 Interest Rate (% APR)

📅 Mortgage Term

⚙️ Mortgage Type

Stamp Duty Land Tax (SDLT - England & NI)

Tiered residential rates

Buyer Status

What is Mortgage Calculator UK — British Pound Repayment & Stamp Duty?

How to use it

1️⃣ Enter the UK property purchase price in Pounds (£).
2️⃣ Specify your cash deposit (down payment) to see your Loan-to-Value (LTV) ratio.
3️⃣ Select your mortgage term in years and the agreed fixed or tracker interest rate.
4️⃣ Choose your mortgage repayment style: Standard Repayment (Capital + Interest) or Interest-Only.
5️⃣ Select your buyer profile (First-Time Buyer, Next Home, or Additional Property) to compute exact Stamp Duty Land Tax (SDLT).

Formula

For Repayment: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ - 1]. For Interest-Only: M = P × r, where P is loan principal, r is monthly interest rate, and n is total months.

💡 See it in action — a real example

On a £500,000 property with a 25% deposit (£125,000) at 5.0% interest over 25 years: Capital repayment monthly payment is £2,192.26. Total interest paid over 25 years is £282,679. Standard Stamp Duty (SDLT) is £12,500.

❓ Common questions

What is Loan-to-Value (LTV) and why does it matter in the UK?: LTV is the percentage of the property value you are borrowing. For instance, a £50,000 deposit on a £250,000 house is an 80% LTV. Lenders offer significantly lower interest rates for lower LTV bands (e.g. 60% or 75% LTV) because they carry less risk.
How is UK Stamp Duty (SDLT) calculated?: SDLT in England and Northern Ireland operates on tiered thresholds. Standard rates: 0% up to £250k, 5% on £250k–£925k, 10% on £925k–£1.5m, and 12% above £1.5m. First-time buyers benefit from a £425,000 zero-rate threshold on homes up to £625,000.
What is the difference between Repayment and Interest-Only mortgages?: With a repayment mortgage, each monthly payment covers both the interest and a portion of the original loan balance, ensuring the loan is completely paid off by the end of the term. With an interest-only mortgage, you only pay the monthly interest; the entire original capital must be repaid at the end of the term.