Mortgage calculator
Mortgage summary
For a repayment mortgage of £270,000 at 5.00% interest over 25 years, your monthly payment will be £1,578. Over the life of the mortgage, you'll pay a total of £473,518 — meaning you'll fork out £203,518 in interest alone.
Loan-to-Value (LTV)
Your LTV is 90.00%.
LTV, or Loan-to-Value ratio, is the amount you're borrowing as a percentage of your property's value. A lower LTV often means better mortgage rates, as it's seen as lower risk by lenders. As you pay down your mortgage or if your property value increases, your LTV will decrease.
Here's how it breaks down: 42.98% of your total payments will go toward interest, while the other 57.02% chips away at the mortgage itself.
And just to recap, over 300 months (that's 25 years), you're locked into £1,578 per month. It's always good to know the annual cost too: you'll pay £18,941 each year.But remember, the proportion of your payment that goes to interest will shrink over time as you reduce the mortgage balance. Early on, a bigger portion of that monthly payment is chipping away at interest than toward the end.
- Principal
- Interest
Year-by-year mortgage payment breakdown
| Year | Payment | Interest | Principal | Remaining Balance |
|---|---|---|---|---|
| 1 | £18,941 | £13,374 | £5,567 | £264,433 |
| 2 | £18,941 | £13,089 | £5,852 | £258,581 |
| 3 | £18,941 | £12,789 | £6,151 | £252,430 |
| 4 | £18,941 | £12,475 | £6,466 | £245,963 |
| 5 | £18,941 | £12,144 | £6,797 | £239,167 |
| 6 | £18,941 | £11,796 | £7,145 | £232,022 |
| 7 | £18,941 | £11,431 | £7,510 | £224,512 |
| 8 | £18,941 | £11,046 | £7,894 | £216,617 |
| 9 | £18,941 | £10,642 | £8,298 | £208,319 |
| 10 | £18,941 | £10,218 | £8,723 | £199,596 |
| 11 | £18,941 | £9,772 | £9,169 | £190,427 |
| 12 | £18,941 | £9,302 | £9,638 | £180,789 |
| 13 | £18,941 | £8,809 | £10,131 | £170,657 |
| 14 | £18,941 | £8,291 | £10,650 | £160,008 |
| 15 | £18,941 | £7,746 | £11,195 | £148,813 |
| 16 | £18,941 | £7,173 | £11,767 | £137,046 |
| 17 | £18,941 | £6,571 | £12,369 | £124,676 |
| 18 | £18,941 | £5,939 | £13,002 | £111,674 |
| 19 | £18,941 | £5,273 | £13,667 | £98,007 |
| 20 | £18,941 | £4,574 | £14,367 | £83,640 |
| 21 | £18,941 | £3,839 | £15,102 | £68,538 |
| 22 | £18,941 | £3,066 | £15,874 | £52,664 |
| 23 | £18,941 | £2,254 | £16,686 | £35,978 |
| 24 | £18,941 | £1,401 | £17,540 | £18,438 |
| 25 | £18,941 | £503 | £18,438 | £0 |
Digging deeper into your mortgage
Amortisation matters: In the early years, you'll pay a good chunk toward interest. The magic here is amortisation, and it's something every borrower should understand. It's easy to think you're chipping away at the debt when, in reality, the interest is front-loaded.
Interest vs Principal: By the end of the mortgage term, you'll have paid £203,518 in interest, which is around 42.98% of your total repayment. It's important to realise that with different rates or mortgage durations, this can change dramatically.
Consider the mortgage term: Shorter mortgage terms mean higher monthly payments but save you a lot on interest. For example, paying off this same mortgage in 24 years instead of 25 years would hike your monthly payment to £1,612 but cut your total interest to £194,148, meaning you'd pay only about 41.83% of your total payments in interest.
Changing interest rates: If the interest rate were 6.00% instead of 5.00%, you'd end up paying a total of £521,884 over the same 25 years — an extra £48,366 in interest.
Mortgage calculator
Mortgage summary
For a repayment mortgage of £270,000 at 5.00% interest over 25 years, your monthly payment will be £1,578. Over the life of the mortgage, you'll pay a total of £473,518 — meaning you'll fork out £203,518 in interest alone.
Loan-to-Value (LTV)
Your LTV is 90.00%.
LTV, or Loan-to-Value ratio, is the amount you're borrowing as a percentage of your property's value. A lower LTV often means better mortgage rates, as it's seen as lower risk by lenders. As you pay down your mortgage or if your property value increases, your LTV will decrease.
Here's how it breaks down: 42.98% of your total payments will go toward interest, while the other 57.02% chips away at the mortgage itself.
And just to recap, over 300 months (that's 25 years), you're locked into £1,578 per month. It's always good to know the annual cost too: you'll pay £18,941 each year.But remember, the proportion of your payment that goes to interest will shrink over time as you reduce the mortgage balance. Early on, a bigger portion of that monthly payment is chipping away at interest than toward the end.
- Principal
- Interest
Year-by-year mortgage payment breakdown
| Year | Payment | Interest | Principal | Remaining Balance |
|---|---|---|---|---|
| 1 | £18,941 | £13,374 | £5,567 | £264,433 |
| 2 | £18,941 | £13,089 | £5,852 | £258,581 |
| 3 | £18,941 | £12,789 | £6,151 | £252,430 |
| 4 | £18,941 | £12,475 | £6,466 | £245,963 |
| 5 | £18,941 | £12,144 | £6,797 | £239,167 |
| 6 | £18,941 | £11,796 | £7,145 | £232,022 |
| 7 | £18,941 | £11,431 | £7,510 | £224,512 |
| 8 | £18,941 | £11,046 | £7,894 | £216,617 |
| 9 | £18,941 | £10,642 | £8,298 | £208,319 |
| 10 | £18,941 | £10,218 | £8,723 | £199,596 |
| 11 | £18,941 | £9,772 | £9,169 | £190,427 |
| 12 | £18,941 | £9,302 | £9,638 | £180,789 |
| 13 | £18,941 | £8,809 | £10,131 | £170,657 |
| 14 | £18,941 | £8,291 | £10,650 | £160,008 |
| 15 | £18,941 | £7,746 | £11,195 | £148,813 |
| 16 | £18,941 | £7,173 | £11,767 | £137,046 |
| 17 | £18,941 | £6,571 | £12,369 | £124,676 |
| 18 | £18,941 | £5,939 | £13,002 | £111,674 |
| 19 | £18,941 | £5,273 | £13,667 | £98,007 |
| 20 | £18,941 | £4,574 | £14,367 | £83,640 |
| 21 | £18,941 | £3,839 | £15,102 | £68,538 |
| 22 | £18,941 | £3,066 | £15,874 | £52,664 |
| 23 | £18,941 | £2,254 | £16,686 | £35,978 |
| 24 | £18,941 | £1,401 | £17,540 | £18,438 |
| 25 | £18,941 | £503 | £18,438 | £0 |
Digging deeper into your mortgage
Amortisation matters: In the early years, you'll pay a good chunk toward interest. The magic here is amortisation, and it's something every borrower should understand. It's easy to think you're chipping away at the debt when, in reality, the interest is front-loaded.
Interest vs Principal: By the end of the mortgage term, you'll have paid £203,518 in interest, which is around 42.98% of your total repayment. It's important to realise that with different rates or mortgage durations, this can change dramatically.
Consider the mortgage term: Shorter mortgage terms mean higher monthly payments but save you a lot on interest. For example, paying off this same mortgage in 24 years instead of 25 years would hike your monthly payment to £1,612 but cut your total interest to £194,148, meaning you'd pay only about 41.83% of your total payments in interest.
Changing interest rates: If the interest rate were 6.00% instead of 5.00%, you'd end up paying a total of £521,884 over the same 25 years — an extra £48,366 in interest.