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Calculate UK mortgage monthly repayments and stamp duty land tax (SDLT) for residential property.
UK Mortgage Formulas:
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
SDLT: 0% to £250,000; 5% on £250,001 to £925,000; 10% above £925,000
First-time buyers: 0% up to £425,000, 5% on £425,001 to £625,000.
Common UK mortgage types include fixed rate (rate locked for 2-5 years), tracker (follows Bank of England base rate), and standard variable rate (SVR). Most buyers start with a fixed rate for payment certainty.
Stamp Duty Land Tax (SDLT) is a tax paid when buying property in England or Northern Ireland. Scotland has Land and Buildings Transaction Tax (LBTT); Wales has Land Transaction Tax (LTT). Rates vary by property price and buyer status.
Most lenders require at least 5% deposit. With less than 10-15% deposit, you may need a Help to Buy scheme or Mortgage Guarantee scheme. A 25%+ deposit typically gets the best rates.
Loan-to-Value (LTV) is the mortgage amount as a percentage of property value. A £280,000 mortgage on a £350,000 property is 80% LTV. Lower LTV means lower risk for lenders and usually better rates for borrowers.
UK mortgage rates vary with the Bank of England base rate. In 2024, 2-year fixed rates range from 4-6% and 5-year fixed rates from 4-5.5%. Your rate depends on LTV, credit history, and income.
An AIP (also called a Decision in Principle or Mortgage in Principle) is a lender's conditional agreement to lend a certain amount before a full application. Estate agents often require an AIP before accepting an offer.