10.0% deposit · 90.0% LTV
Monthly mortgage payment: £1,501. Loan amount £270,000.
A £270,000 mortgage at 4.5% over 25 years works out at about £1,501 a month. Over the full term you'd pay £180,224 in interest — £451,223 in total.
Principal vs interest
If your rate rises
| Interest rate | Monthly payment | vs now |
|---|---|---|
| 4.5% (now) | £1,501 | — |
| 5.5% (+1) | £1,658 | +£157/mo |
| 6.5% (+2) | £1,823 | +£322/mo |
| 7.5% (+3) | £1,995 | +£495/mo |
What your monthly payment would become if you remortgaged onto a higher rate — e.g. when a fixed deal ends.
Balance over time
| Year | Interest | Principal | Balance |
| 1 | £12,028 | £5,981 | £264,019 |
| 6 | £10,522 | £7,487 | £229,729 |
| 11 | £8,636 | £9,373 | £186,805 |
| 16 | £6,276 | £11,733 | £133,073 |
| 21 | £3,322 | £14,687 | £65,812 |
| 25 | £431 | £17,578 | £0 |
How much can I borrow?
| Illustrative borrowing range (4–4.5× income) | £180,000 – £202,500 |
| Upper property-price estimate with your £30,000 deposit | £232,500 |
This is an illustrative estimate, not a lending decision. Some lenders may offer more or less depending on affordability and their lending criteria. For joint applications, this estimate uses your combined gross annual income.
Many mortgage affordability estimates use around 4 to 4.5 times annual income as a rough guide. This is not a universal borrowing limit. Some lenders may offer higher income multiples depending on your affordability, deposit, outgoings, credit history and their own lending criteria.
High-LTI rules from 28 October 2026
The FCA/PRA rules that took effect on 28 October 2026 removed the firm-specific 15% limit on high loan-to-income lending. High-LTI lending (4.5 times income or above) is now monitored across the mortgage market against the aggregate 15% limit. This gives individual lenders more flexibility, but does not guarantee that a borrower will qualify for a higher income multiple.
Upfront buying costs
| Deposit | £30,000 |
| SDLT (stamp duty) | £5,000 |
| Mortgage arrangement fee | £999 |
| Legal / conveyancing fees | £1,500 |
| Survey | £500 |
| Removal / moving costs | £1,200 |
| Total cash needed | £39,199 |
Stamp duty is estimated from your property price for the buyer type above. Legal, survey and moving costs are editable estimates — your actual quotes will vary.
What's changing
- Bank Rate rises to 4%: what changes for your mortgage and savings?
Money Insights · Published
The Bank's November decision does not change every account by the same amount. Compare tracker, variable and fixed products, with clearly labelled mortgage and savings illustrations.
- Your First Home: how England's 2.5% deposit scheme will work
Money Insights · Published
England only. Applications are not open. A 2.5% deposit could reduce upfront cash, but the government equity loan is debt, not a gift.
Frequently asked questions
How are monthly mortgage repayments calculated?
A repayment mortgage uses the loan amount, interest rate and term in a standard amortisation formula. Early on, most of each payment is interest; over time more goes towards the balance. This calculator assumes a constant interest rate for the whole term, so a real deal with a fixed period followed by a variable rate may differ.
How much can I borrow for a mortgage?
Many mortgage affordability estimates use around 4 to 4.5 times annual income as a rough guide. This is not a universal borrowing limit. Some lenders may offer higher income multiples depending on your affordability, deposit, outgoings, credit history and their own lending criteria. This is an illustrative estimate, not a lending decision. Some lenders may offer more or less depending on affordability and their lending criteria. For joint applications, this estimate uses your combined gross annual income.
What changes for high loan-to-income mortgages from 28 October 2026?
The FCA/PRA rules that took effect on 28 October 2026 removed the firm-specific 15% limit on high loan-to-income lending. High-LTI lending (4.5 times income or above) is now monitored across the mortgage market against the aggregate 15% limit. This gives individual lenders more flexibility, but does not guarantee that a borrower will qualify for a higher income multiple.
What is loan-to-value (LTV)?
LTV is the loan as a percentage of the property value. A £180,000 loan on a £200,000 home is 90% LTV. Lower LTV (a bigger deposit) usually unlocks better interest rates, with the best deals typically at 60% LTV or below.
Should I choose a longer or shorter mortgage term?
A longer term lowers your monthly payment but increases the total interest you pay over the life of the loan. A shorter term costs more each month but far less overall. Overpaying when you can is a flexible middle ground — see the mortgage overpayment calculator.
What other costs are there when buying a home?
Beyond the deposit and monthly payments, budget for stamp duty, legal/conveyancing fees, a survey, mortgage arrangement fees, removals and buildings insurance. The buying-costs section of this calculator estimates the upfront cash you’ll need.
Related calculators & guides
Sources & guidance
- MoneyHelper — Mortgages & affordability ↗
- FCA FG26/11 — High loan-to-income lending (effective 28 October 2026) ↗
- PRA / Bank of England PS19/26 — High loan-to-income lending (effective 28 October 2026) ↗
Affordability guidance reviewed 26 October 2026. The FCA/PRA regulatory change applies from 28 October 2026. · How we calculate →
This is an illustrative estimate assuming a constant interest rate over the full term. Real mortgages may have fixed and variable periods, arrangement fees, and rates that change. Your home may be repossessed if you do not keep up repayments. This is not financial advice — obtain a personalised mortgage illustration from a lender or broker.
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