Tools
Mortgage repayment calculator
The monthly number matters — but so does where it goes. See your repayment, and how much of the total is interest rather than your home.
Total paid over 25 years: £396,864 — 40% of it is interest.
Repayment mortgage, fixed rate assumed for the whole term. A guide, not advice — lenders will quote their own rates and fees.
Repayments — your questions
How is a monthly mortgage repayment calculated?
Lenders use the standard amortisation formula: the loan, the monthly interest rate and the number of months set a fixed payment that clears the debt exactly by the end of the term.
How much difference does the interest rate make?
A lot. On a £240,000 loan over 25 years, each extra percentage point adds roughly £130 a month — and tens of thousands of pounds of interest over the term.
Does a longer term make a mortgage cheaper?
It lowers the monthly payment but raises the total cost, because interest runs for longer. Stretching 25 to 35 years can add tens of thousands in interest.