Mortgage Calculator UK

Calculate UK mortgage payments with Stamp Duty. Uses £ and UK conventions.

£0
Monthly Payment

About the UK Mortgage Calculator

This UK mortgage calculator uses pounds sterling and UK conventions, including Stamp Duty Land Tax (SDLT) calculations. It provides monthly payment estimates, total interest, and the loan-to-value ratio for UK property purchases. UK mortgages have distinct features including Stamp Duty Land Tax (SDLT), loan-to-value ratio calculations, and different market conventions. This calculator provides monthly payment estimates in pounds sterling along with the Stamp Duty tax due, helping UK property buyers budget accurately.

How to Use This Calculator

  1. Enter the property price in pounds and your deposit percentage.
  2. Input the interest rate and loan term in years.
  3. Click Calculate to see your monthly payment, LTV ratio, and Stamp Duty tax due.

The Formula

The calculator uses the standard amortization formula and computes Stamp Duty using UK slab rates: 0% up to £250,000, 5% from £250,001 to £925,000, with higher rates above.

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Frequently Asked Questions

What is Stamp Duty Land Tax?

SDLT is a tax paid by property buyers in England and Northern Ireland. It is calculated in tiers based on the property price, with different rates applying to each portion.

How much deposit do I need for a UK mortgage?

Most UK lenders require a minimum deposit of 5-10% of the property price. A larger deposit of 15-20% typically qualifies you for better interest rates and lower monthly payments.

How is Stamp Duty Land Tax calculated in the UK?

SDLT is calculated in tiers: 0% on the first £250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5 million, and 12% above £1.5 million. First-time buyers may receive relief on properties up to £425,000.

What is a good LTV ratio for a UK mortgage?

A lower LTV ratio qualifies you for better rates. An LTV of 60-75% typically gets the best rates, while 90-95% LTV mortgages have higher rates. Most lenders require at least 5-10% deposit.

How does the Bank of England base rate affect my mortgage?

The base rate influences variable and tracker mortgage rates. Fixed-rate mortgages are locked in for the term regardless of base rate changes. Most UK mortgages are fixed for 2-5 years.

What are the additional costs when buying a UK property?

Beyond the deposit and Stamp Duty, budget for solicitor fees (£1,000-£2,500), survey costs (£500-£1,500), mortgage arrangement fees (£500-£2,000), and moving costs.

Related Calculators