Mortgage Repayment Calculator

How the Mortgage Calculator Works

The calculator uses the figures you enter to estimate the payment required over the selected mortgage term. For a repayment mortgage, the calculation includes capital and interest. For an interest-only mortgage, it estimates the interest payment while showing the capital that would remain outstanding.

The calculation assumes that the interest rate remains unchanged throughout the term. In practice, a mortgage may have an initial fixed or tracker period followed by another rate. Actual repayments could therefore change.

What the Calculator Can Show You

You can use the calculator to explore how estimated repayments may change when you adjust:

• The amount borrowed
• The illustrative interest rate
• The length of the mortgage term
• The repayment type
• Whether mortgage fees are added to the loan

This can be useful when considering different borrowing amounts or examining how a shorter or longer term might affect the monthly payment.

A longer mortgage term may reduce the monthly repayment, but it will generally increase the amount of interest paid over the full term. Adding fees to the mortgage can also increase the total cost because interest may be charged on those fees.

What the Calculator Does Not Assess

The calculator does not determine whether a mortgage is affordable or whether a lender will accept an application. Lenders conduct their own assessments and apply different eligibility criteria.

The calculation does not assess:

• Your income and employment status
• Household expenditure and financial commitments
• Your deposit or loan-to-value ratio
• Your credit history
• The lender’s eligibility criteria
• The acceptability or valuation of a property
• Changes to interest rates during the mortgage term
• Every product, legal, valuation or property-purchase cost

A lender may offer more or less than an online calculation appears to suggest, or may decide not to offer a mortgage. Personalised advice and a full lender assessment are required before relying on any borrowing figure.

Repayment and Interest-Only Mortgages

With a repayment mortgage, each regular payment covers interest and part of the capital. Provided all required payments are made, the mortgage should be repaid by the end of the agreed term.

With an interest-only mortgage, regular payments normally cover only the interest charged. The original capital remains outstanding and must be repaid separately at the end of the term.

Interest-only borrowing requires an acceptable repayment strategy and is subject to lender criteria. A lower estimated monthly payment does not mean it is the more suitable or less expensive option.

Adding Fees to a Mortgage

Some mortgage products have arrangement or product fees. A lender may allow certain fees to be added to the mortgage rather than paid separately.

Adding a fee to the mortgage reduces the amount that must be paid at the outset, but it increases the amount borrowed. Interest may then be charged on the fee for as long as it remains part of the mortgage.

When comparing mortgage options, the interest rate, fees, incentives and overall cost should be considered together.

From an Estimate to Personal Mortgage Advice

Once you have used the calculator, our qualified mortgage advisers can assess your actual circumstances and research appropriate mortgage options from the lenders and products available to us.

This assessment considers your income, regular expenditure, deposit, existing borrowing, future plans and the type of property involved. We also explain the relevant interest rate, repayment structure, product fees, early repayment charges and other conditions before you decide whether to proceed.

Further information about our service is available on our independent mortgage advice page.

Mortgage Calculator Questions

Does the Calculator Show How Much I Can Borrow?

No. It estimates repayments using the loan amount, interest rate and term you enter. It does not assess your income, expenditure, credit history or a lender’s affordability criteria.

Are the Results Guaranteed?

No. The results are illustrative estimates. They are not a mortgage quotation, recommendation, agreement in principle or guarantee that a mortgage will be available.

Which Interest Rate Should I Enter?

You can enter an illustrative rate to explore how different rates could affect repayments. The rate shown by default is an example for calculation purposes and is not a mortgage rate being offered by Sturdy Edwards or a lender.

Why Does a Longer Term Reduce the Monthly Estimate?

Spreading repayment over more years can reduce the monthly amount, but interest is generally charged for longer. This will usually increase the total amount repaid over the mortgage term.

What Happens If I Add Fees to the Mortgage?

Fees added to the mortgage increase the amount borrowed. Interest will normally be charged on them, which can make the total cost higher than paying the fees separately.

Speak to a Qualified Mortgage Adviser

If you would like to discuss your calculator results or receive mortgage advice based on your circumstances, our advisers are available to help.

Please contact Sturdy Edwards Financial Services to arrange an initial mortgage discussion.