Mortgage repayment calculator.

Mortgage repayments are usually calculated based on four key factors:

• The amount you borrow
• The interest rate
• The length of the mortgage term
• The type of mortgage repayment method

Capital repayment mortgages

If you’re on a repayment mortgage, your monthly payment covers:

• The interest charged, and
• A portion of the capital (the amount borrowed)

This means your balance gradually reduces over time, and the mortgage is fully paid off at the end of the term.

Interest-only mortgages

With an interest-only mortgage, your monthly payments only cover the interest. The original loan amount does not reduce, so you’ll need a separate plan (often called an exit strategy) to repay the capital at the end of the term.

How lenders work it out

Lenders use a standard mortgage repayment formula that takes into account:

• Your loan amount
• The interest rate (fixed or variable)
• The number of monthly payments over the full term

You can get an estimate using a mortgage calculator, but your actual repayments may change if your interest rate changes (for example, if you’re on a variable rate or when a fixed rate ends).

Stamp Duty Land Tax (SDLT) is a tax paid to the government when you buy property or land over a certain price threshold. It applies to both freehold and leasehold properties, whether the purchase is for personal or commercial use, and whether the property is bought outright or with a mortgage. Higher rates may apply if you are buying an additional property, such as a second home or buy to let.

Stamp duty is calculated based on the purchase price of the property, not your income, with different tax rates applied to different price bands.

Key things to know about stamp duty:

• Band-based rates: The amount of stamp duty you pay depends on the price band your property falls into and whether you already own other properties.


• Additional property charges: Buying an extra property may result in higher stamp duty rates.


• Regional differences: Stamp duty rules vary across the UK. For example, Scotland and Wales use different property taxes with their own rates and thresholds, so it’s important to check the rules for the correct location to avoid surprises.

The amount of Stamp Duty you pay depends on where in the UK the property is located, the purchase price, and whether the property is for personal use or an additional home.

The following Stamp Duty rates apply to residential properties only, including main residences, first time buyer purchases, and additional homes.

Stamp Duty in England:

• Up to £125,000 = 0%
• £125,001 – £250,000 = 2%
• £250,001 – £925,000 = 5%
• £925,001 – £1.5m = 10%
• Over £1.5m = 12%

Key exemptions and factors in England:

• First time buyers pay 0% stamp duty on properties up to £300,000.
• Second homes and Buy to Let properties are subject to an additional 3% surcharge on top of standard rates.

Stamp Duty in Scotland:

In Scotland, buyers pay Land and Buildings Transaction Tax (LBTT) on residential properties over £145,000. LBTT is also a progressive tax, so each rate only applies to the portion of the price within that band.

• Up to £145,000 = 0%
• £145,001 – £250,000 = 2%
• £250,001 – £325,000 = 5%
• £325,001 – £750,000 = 10%
• Over £750,000 = 12%

Key exemptions and factors in Scotland:

• First time buyers pay 0% LBTT on properties up to £175,000.
• An 8% Additional Dwelling Supplement (ADS) applies to second homes and buy to let properties.

Stamp duty in Wales:

In Wales, Land Transaction Tax (LTT) applies. Unlike England and Scotland, there is no first time buyer relief, but the starting threshold is higher for all buyers.

• Up to £225,000 = 0%
• £225,001 – £400,000 = 6%
• £400,001 – £750,000 = 7.5%
• £750,001 – £1.5 million = 10%
• Over £1.5 million = 12%

Key factors in Wales:

• Higher rates apply from the first £1 for additional properties. Rates start at 5% for properties up to £180,000 and rise progressively to 17% on the portion over £1.5 million.