Topic hub
UK Mortgage Calculators & Guides
Tools for every stage of the mortgage journey, from working out what you can afford to calculating how quickly you can pay it off.
Mortgage calculators
Mortgage Calculator
Monthly repayments, total interest and full amortisation schedule.
Affordability Calculator
How much you can borrow based on income, outgoings and deposit.
Overpayment Calculator
Interest saved and years cut by making regular or lump-sum overpayments.
Stamp Duty Calculator
SDLT for first-time buyers, home movers and second-property purchasers.
Rent vs Buy Calculator
True financial cost comparison including deposit opportunity cost and equity.
Lifetime ISA Calculator
Project your LISA deposit pot including the 25% government bonus.
Mortgage by salary
See how much you could borrow and your monthly repayments for common UK salaries.
Mortgage guides
How UK Mortgages Work
Types of mortgage, fixed vs tracker rates, LTV and the application process.
First-Time Buyer's Guide
From saving a deposit to getting the keys, a step-by-step walkthrough.
Stamp Duty Guide
Rates, thresholds and relief for first-time buyers in 2026/27.
Remortgaging Guide
When to remortgage, what costs to expect and how to switch lenders.
Help to Buy ISA vs Lifetime ISA
Which scheme is better for saving your first-home deposit?
What Salary Do I Need to Buy a House?
Borrowing rules, deposit requirements, and regional salary breakdowns for 2026.
Getting a mortgage in 2026
UK mortgage rates rose sharply from 2022 onwards following Bank of England base rate increases. While rates have eased from their 2023 peak, the average two-year fixed rate in 2026 remains well above the historic lows of 2021. The key questions for most buyers are: how much can I borrow, what will the monthly repayments be, and how does my deposit affect the rate I'll be offered?
Most lenders will offer between 4× and 4.5× your annual income, though this is subject to a full affordability assessment that considers all income sources, regular outgoings, and existing debts. Stress testing means lenders check you could still afford repayments if the rate rose by around 3 percentage points from the deal rate.
How your deposit affects your mortgage
Your deposit determines your loan-to-value (LTV) ratio, which is one of the biggest factors in the interest rate you'll be offered. The larger your deposit, the lower the LTV and the better the rates available to you.
| Deposit | LTV | Rate tier |
|---|---|---|
| 5% | 95% | Highest rates, limited lender choice |
| 10% | 90% | More choice, rates improve meaningfully |
| 15–20% | 80–85% | Competitive rates, mainstream lenders |
| 25%+ | 75% or lower | Best available rates |
A Lifetime ISA is one of the most effective ways to build a first-home deposit, the government adds a 25% bonus on up to £4,000 per year, giving you up to £1,000 free. Properties must cost £450,000 or less to use the LISA bonus.
Stamp Duty in 2026/27
Stamp Duty Land Tax (SDLT) changed in April 2025: the temporary higher nil-rate thresholds introduced in September 2022 reverted to their permanent levels. The nil-rate threshold is now £125,000 for home movers and £300,000 for first-time buyers (on properties up to £500,000). Always factor SDLT into your budget, on a £400,000 purchase as a home mover it is £10,000, but a first-time buyer pays nothing.
The mortgage application process
Getting a mortgage follows a broadly consistent process across lenders. First, you'll want an Agreement in Principle (AIP) — a lender's indication of how much they'd be willing to lend based on a soft credit search. This isn't a formal offer but estate agents typically ask for one before accepting an offer on a property.
Once your offer is accepted, you make a full mortgage application. The lender carries out a hard credit check, verifies your income (payslips, P60, bank statements), and commissions a valuation of the property. Formal mortgage offers typically take 2–6 weeks from application. Completion then depends on the conveyancing process — straightforward purchases usually complete 8–12 weeks after an offer is accepted, chains can take considerably longer.
Fixed vs tracker: which is right for you?
Fixed-rate mortgages lock your interest rate for a set period, typically two or five years. Your monthly payment stays the same regardless of what happens to the base rate, giving you certainty over your budget. At the end of the fix, you roll onto the lender's Standard Variable Rate (SVR), which is usually much higher, this is when most people remortgage.
Tracker mortgages follow the Bank of England base rate plus a set margin (e.g. base rate + 1%). If rates fall, so does your monthly payment, but you also take on the risk of payments rising if rates increase. Trackers often have no early repayment charges, giving you flexibility to overpay or switch without penalty.
Most buyers in 2026 favour two-year or five-year fixes for the payment certainty they provide, with the five-year fix particularly popular among those who value stability. Use the mortgage calculator to model both scenarios side by side.
Common mortgage questions
What is an Agreement in Principle and do I need one?
An Agreement in Principle (AIP), also called a Decision in Principle or Mortgage in Principle, is a written indication from a lender of how much they might lend you, based on a basic assessment of your income and a soft credit check. It's not a formal offer and doesn't guarantee a mortgage. Most estate agents require one before they'll accept an offer, as it shows you're a serious buyer with access to finance.
Can I get a mortgage if I'm self-employed?
Yes, but you'll typically need at least two years of accounts or tax returns to prove your income. Lenders usually use your average net profit over those two years (or sometimes just the most recent year if it's lower). Having your accounts prepared by an accountant, a good credit history, and a larger deposit all improve your chances. Some specialist lenders cater specifically to self-employed applicants.
What is an early repayment charge (ERC)?
An ERC is a fee charged by the lender if you pay off your mortgage (or more than an allowed amount) before the end of your fixed or discounted period. They're typically 1–5% of the outstanding balance, reducing each year of the fix. For example, a 5-year fix might charge 5% in year 1, 4% in year 2, and so on. Check the ERC schedule before overpaying beyond your lender's free overpayment allowance (usually 10% of the balance per year).
Should I overpay my mortgage?
Overpaying reduces your outstanding balance, which cuts the total interest you pay and shortens your mortgage term. It makes sense if your mortgage rate is higher than the after-tax return you'd get from saving the same money. At current rates (most fixes above 4%), overpaying often beats a standard savings account after tax — but compare your mortgage rate against the best available ISA or savings rates. Always stay within your lender's free overpayment limit to avoid early repayment charges.
When should I start looking to remortgage?
Start looking 3–6 months before your current deal ends. Most lenders allow you to lock in a new rate up to 6 months in advance, so if rates fall before completion you can often switch to the better deal. Leaving it until after your fix ends means you'll roll onto the lender's Standard Variable Rate (SVR), which is typically 1–2 percentage points higher than available fixed-rate deals.