How Much Is My Mortgage a Month?
Short answer: a £200,000 repayment mortgage at 4.5% over 25 years costs £1,111.66 a month, and £250,000 at the same rate costs £1,389.58. The tables below cover loans from £150,000 to £400,000 at rates from 3.5% to 5.5%.
How a monthly mortgage payment is worked out
UK lenders charge interest monthly on the balance you still owe. On a repayment mortgage the payment is set so that the loan is fully paid off at the end of the term: early payments are mostly interest, later payments are mostly capital.
r = annual rate ÷ 12 (4.5% gives 0.00375), n = term in months (25 years = 300)
Three things drive the payment: how much you borrow, the interest rate and the term. The tables below change one at a time so you can see which matters most for you.
Monthly payments on a 25-year repayment mortgage
| Loan | 3.5% | 4% | 4.5% | 5% | 5.5% |
|---|---|---|---|---|---|
| £150,000 | £750.94 | £791.76 | £833.75 | £876.89 | £921.13 |
| £200,000 | £1,001.25 | £1,055.67 | £1,111.66 | £1,169.18 | £1,228.17 |
| £250,000 | £1,251.56 | £1,319.59 | £1,389.58 | £1,461.48 | £1,535.22 |
| £300,000 | £1,501.87 | £1,583.51 | £1,667.50 | £1,753.77 | £1,842.26 |
| £350,000 | £1,752.18 | £1,847.43 | £1,945.41 | £2,046.07 | £2,149.31 |
| £400,000 | £2,002.49 | £2,111.35 | £2,223.33 | £2,338.36 | £2,456.35 |
A quick rule of thumb from the same formula: over 25 years every £1,000 borrowed costs about £5.28 a month at 4%, £5.56 at 4.5% and £5.85 at 5%. Going from 4% to 5% on a £250,000 loan adds £141.88 a month.
Longer terms: lower payments, more interest
Many UK buyers now stretch the term to 30 or 35 years to make the monthly figure affordable. Here is what that does to a £250,000 loan at 4.5%:
| Term | Monthly payment | Total interest | Total repaid |
|---|---|---|---|
| 20 years | £1,581.62 | £129,590 | £379,590 |
| 25 years | £1,389.58 | £166,874 | £416,874 |
| 30 years | £1,266.71 | £206,017 | £456,017 |
| 35 years | £1,183.14 | £246,920 | £496,920 |
Moving from 25 to 35 years saves £206.44 a month but adds about £80,000 of interest over the life of the loan, assuming the rate never changes.
Worked example: £200,000 at 4.5% over 25 years
r = 4.5 ÷ 1,200 = 0.00375 and n = 300 months. The formula gives £1,111.66 a month. Over 300 payments you repay £333,499.49, so the interest is £133,499.49.
On an interest-only basis the payment is £200,000 × 4.5% ÷ 12 = £750 a month. That is £361.66 less each month, but after 25 years you have paid £225,000 in interest and still owe the full £200,000.
What overpaying does
Using the same £200,000 loan at 4.5% over 25 years, a regular monthly overpayment shortens the mortgage and cuts the interest:
| Overpayment | Paid off in | Total interest | Interest saved |
|---|---|---|---|
| £0 | 25 years | £133,499 | £0 |
| £100 a month | 21 years 6 months | £112,358 | £21,142 |
| £200 a month | 18 years 11 months | £97,219 | £36,280 |
| £300 a month | 16 years 11 months | £85,792 | £47,708 |
Practical tips
- Your rate will change. Most UK deals are fixed for 2 or 5 years, then move to the lender's standard variable rate. Re-run the numbers at a higher rate before you commit, so a remortgage does not catch you out.
- Check the overpayment limit. Many fixed deals allow overpayments of up to 10% of the balance a year without an early repayment charge. Above that you may pay a fee.
- Fees can be added to the loan. An arrangement fee added to the mortgage is charged interest for the whole term, so it costs more than paying it upfront.
- Budget for the purchase costs too. Stamp duty is paid in cash on completion: see how much stamp duty will I pay or use the stamp duty calculator. In Scotland use the LBTT calculator.
- Know your take-home pay. Compare the payment with what you actually receive each month using the take home pay calculator.
Try the mortgage repayment calculator
Enter your own numbers below, or open the full mortgage repayment calculator with the formula and more examples.
This guide is general information with example numbers, not financial, tax or building advice. Your costs and results will differ. Terms
Frequently asked questions
How much is a £200,000 mortgage a month?
£1,111.66 a month at 4.5% over 25 years on a repayment basis, or £750 a month interest only. At 5% it is £1,169.18.
How much is a £300,000 mortgage a month in the UK?
Over 25 years it is £1,501.87 at 3.5%, £1,667.50 at 4.5% and £1,842.26 at 5.5% on a repayment mortgage.
Is a 35-year mortgage a good idea?
It lowers the monthly payment but costs much more in total. On £250,000 at 4.5%, 35 years instead of 25 saves £206.44 a month but adds about £80,000 of interest.
How much does overpaying £100 a month save?
On £200,000 at 4.5% over 25 years, £100 a month extra clears the loan 3 years 6 months early and saves about £21,142 in interest.