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Work out your monthly mortgage repayment, the total interest and a year-by-year breakdown. Compare fixed-rate, tracker and discount deals on a capital repayment mortgage.
Note: Indicative figure only. Your actual repayment depends on each lender's terms, fees and any product conditions.
Understand each type of deal and the key factors that decide your monthly repayment
Your interest rate is locked for an initial period — typically 2, 5 or 10 years — so your monthly repayment stays the same regardless of what the Bank of England base rate does. Best for budgeting certainty. Typical 2026 rates: 4.4%–5.0%. When the fixed period ends you move onto the lender's standard variable rate (SVR) unless you remortgage.
The rate is the Bank of England base rate plus a set margin (for example, base rate + 0.99%). When the base rate moves, your repayment moves with it — up or down — usually the following month. With the base rate around 4.00% in 2026, a tracker can be competitive against a fix, but you carry the risk of future rises.
A discount deal charges the lender's standard variable rate minus a set discount for an introductory period (often 2–3 years). The pay rate can be low to start with, but because it is tied to the SVR — not the base rate — the lender can change it at its own discretion. Enter the resulting pay rate to see the repayment.
The base rate (Bank Rate) set by the Monetary Policy Committee is the reference for tracker and most variable mortgages. After peaking at 5.25% through 2023–24, it has eased to around 4.00% in 2026 (source: Bank of England). Its path feeds straight through to tracker and SVR repayments.
Beyond your deposit, expect an arrangement (product) fee of up to ~£1,000–£2,000 (which can often be added to the loan), a valuation fee, conveyancing (solicitor) costs and, separately, Stamp Duty Land Tax. A mortgage broker may charge a fee or be paid by lender commission.
Most lenders let you overpay up to 10% of the outstanding balance each year without an early repayment charge (ERC). Overpaying reduces the term or the future repayment and saves interest. During a fixed or discount period, overpaying above the allowance usually triggers an ERC of 1%–5%.
The APRC (Annual Percentage Rate of Charge) folds in fees and the rate you revert to, giving the true long-term cost. Two deals with the same headline rate can have very different APRCs if one carries a large arrangement fee. Always compare the APRC.
With the base rate around 4.00%, fixed deals (4.4%–5.0%) and trackers are closely matched. Choose a fix if you value certainty; a tracker if you expect the base rate to keep falling and can absorb a rise.
If you are worried about your repayments, speak to your lender early and to MoneyHelper. Under FCA rules lenders must offer tailored support, such as a temporary switch to interest-only or a term extension.
On a capital repayment mortgage — the standard arrangement in the UK — each monthly payment covers the interest due plus a slice of the capital, so the balance falls to zero by the end of the term. The monthly payment stays constant while the rate is fixed, but its make-up shifts: at the start most of it is interest and little is capital; by the end it is the other way round. You can read more about the legal concept on Wikipedia: Mortgage loan.
This mortgage calculator uses the standard amortisation formula to work out the monthly repayment from the amount borrowed, the term and the interest rate. It also shows the total interest you will pay and the total cost of the mortgage over its full life.
Payment = Loan x (i x (1 + i)^n) / ((1 + i)^n - 1)
Where: i = monthly rate (annual rate / 12), n = number of payments (years x 12)
Amount borrowed
£250,000
Term
25 years (300 payments)
Interest rate
4.50% a year
Monthly repayment
£1,389.58
Total interest: £166,879 | Total repayable: £416,879
The Bank of England base rate (Bank Rate) is the benchmark for tracker mortgages and standard variable rates. After peaking at 5.25% in 2023, the Monetary Policy Committee has cut it steadily, which has eased repayments for borrowers on variable deals.
Lenders weigh up several factors before agreeing a mortgage. Knowing what they look at helps you prepare your application and improve your chances of approval. MoneyHelper, backed by the government, offers free, impartial guidance on borrowing and your rights.
On top of your deposit, a handful of fees come with buying a home and arranging the mortgage. Some are paid to the lender, some to your solicitor, and Stamp Duty goes to the tax authority. Here is the usual split.
Stamp Duty is charged on the purchase price and is always paid by the buyer. It is tiered, with first-time buyer relief in England and Northern Ireland, and a 5% surcharge on additional properties. Scotland charges LBTT and Wales charges LTT instead, with their own thresholds. Check the current bands for your nation before you budget.
Choosing the right type of deal is one of the biggest financial decisions you will make. Each has its pros and cons depending on your circumstances and where rates are heading.
If you want to clear your mortgage early or overpay above your annual allowance during a deal period, the lender may apply an early repayment charge (ERC). These are the typical levels:
On a repayment mortgage the monthly payment is constant, but the split between capital and interest changes every month. Early on you pay a lot of interest and little capital; later it reverses. You can see it clearly here for a mortgage of £250,000 at 4.50% over 25 years:
Over the first 5 years you will have paid £83,375 in total, of which £53,023 is interest and only £30,352 actually reduces the balance owing.
Note: There is no tax relief on mortgage interest for your own home in the UK (MIRAS was abolished in 2000). If you are a buy-to-let landlord, finance costs no longer reduce your rental profit directly — instead you get a basic-rate (20%) tax credit on the interest.
Tip: MoneyHelper has a free mortgage calculator and guides on your rights as a borrower, including the support lenders must offer under FCA rules if you fall into difficulty.
Tip: If you have spare savings, overpaying your mortgage is often more rewarding than leaving the money in a current account, especially when your mortgage rate is higher than the interest you earn on deposits. Choose to shorten the term rather than cut the repayment: you save more interest overall.
Other tools to plan your mortgage and your personal finances
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We answer the most common questions about mortgages and repayment