🇬🇧 UK Mortgage Calculator

How UK Mortgages Work

UK mortgages are typically arranged through banks, building societies, or mortgage brokers, with terms commonly ranging from 25 to 35 years. Most borrowers choose a fixed-rate deal for an initial period (2, 5, or 10 years) before either remortgaging or moving to the lender's standard variable rate.

Loan-to-Value (LTV) Bands

Your deposit size directly determines your LTV band, and UK lenders price mortgages in bands — commonly 60%, 75%, 85%, 90%, and 95% LTV. Moving from a 90% to an 85% LTV mortgage, for example, can meaningfully reduce your interest rate. Use our Mortgage Calculator to see how a larger deposit changes your monthly payment.

Stamp Duty Land Tax (SDLT)

SDLT applies in England and Northern Ireland on property purchases above a set threshold, charged on a tiered ("slice") basis — you only pay the higher rate on the portion of the price within that band, similar to income tax bands. Scotland (LBTT) and Wales (LTT) have their own separate systems. First-time buyers often benefit from relief on the lower bands. Always check current thresholds with HMRC or your solicitor, as they are periodically revised.

Budgeting for a UK Home Purchase

Beyond your deposit, budget for SDLT, solicitor/conveyancing fees, a mortgage arrangement fee, survey costs, and removal costs. Use our Closing Cost Calculator to estimate your total upfront cash needed.