Disclaimer: This calculator is provided for general information only and does not take into account your personal objectives, financial situation or needs. It is not credit advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek independent, professional advice before making any decisions.
Our UK mortgage calculator helps you estimate your monthly mortgage payments and total loan costs with IFRS 9/FRS 102 compliance. Follow these steps to get accurate results:
Step 1: Enter Basic Loan Information
Property Price
- Enter the total purchase price of the property
- Include any closing costs if you want them factored into your total cost
- Use the actual price you're paying, not the listing price
- Range: £50,000 to £10,000,000+
Deposit
- Enter the amount you'll pay upfront
- Aim for 20% to get better mortgage rates
- Include any earnest money or deposits
- Minimum: 5% for most lenders (higher interest rates)
Interest Rate (APR)
- Use the APR from your lender
- Compare rates from multiple lenders for the best deal
- Consider both fixed and variable-rate options
- Range: 1.00% to 15.00%
Mortgage Term
- Choose between 15, 20, 25, 30, or 35 years
- Shorter terms mean higher monthly payments but less total interest
- Longer terms mean lower monthly payments but more total interest
- Most common: 25-30 years for first-time buyers
Step 2: Add Council Tax and Insurance
Annual Council Tax
- Check your local authority website for current rates
- Council tax rates vary by local authority and property band
- Use the assessed value, not the purchase price
- Auto-distribution: Will be divided by 12 for monthly payments
- Typical range: £1,000 - £3,500 annually
Annual Buildings Insurance
- Get quotes from multiple insurance companies
- Include both buildings and contents insurance if needed
- Consider the rebuild cost, not the market value
- Auto-distribution: Will be divided by 12 for monthly payments
- Typical range: £200 - £1,500 annually
Step 3: Include UK-Specific Fees
Stamp Duty Land Tax (SDLT)
- One-time tax on property purchases
- Rates vary by property value and whether you're a first-time buyer
- Check gov.uk/stamp-duty-land-tax for current rates
- Auto-calculation: Based on property value and first-time buyer status
Arrangement Fee
- One-time fee charged by the lender
- Can be added to loan or paid upfront
- Check with your lender for exact amount
- Typical range: £0 - £2,000
Valuation Fee
- Fee for property valuation required by lender
- May be free with some mortgages
- Check with your lender for exact cost
- Typical range: £150 - £1,500
Step 4: Optional Extra Payments
Extra Monthly Payment
- Additional amount you plan to pay each month
- Can significantly reduce your loan term and total interest
- Even small amounts can make a big difference over time
- Example: £200 extra monthly can save £50,000+ in interest
One-time Extra Payment
- Lump sum payment you plan to make in the first month
- Could be from savings, bonus, or other windfall
- Immediately reduces your principal balance
- Impact: Reduces total interest and loan term
Step 5: IFRS 9/FRS 102 Compliance Options
Expected Credit Loss (ECL) Allowance
- IFRS 9/FRS 102 requires ECL recognition from day one
- Typical rates range from 0.1% to 2.0%
- Reduces the carrying amount of the loan
- Affects effective interest rate calculation
- Default: 0.5% (typical for residential mortgages)
Fee Treatment
- Expense as Incurred: Standard treatment for most fees
- Capitalize into EIR: Only for incremental transaction costs
- Affects effective interest rate calculation
- Complies with IFRS 9/FRS 102 requirements
Step 6: Calculate and Review Results
Click the "Calculate Mortgage" button to see your results:
Monthly Payment Breakdown
- Principal & Interest: The core loan payment
- Council Tax: Monthly tax payment
- Buildings Insurance: Monthly insurance premium
- Total Monthly Payment: Sum of all monthly costs
Total Costs
- Total Interest: Total interest paid over the loan term
- Total Cost: Property price plus all interest and fees
- Loan Amount: Amount you're borrowing
- Stamp Duty: SDLT amount
- Arrangement Fee: Lender processing fee
- Valuation Fee: Property valuation cost
Extra Payment Savings
- Interest Saved: Total interest reduction from extra payments
- Term Reduced: Years saved from extra payments
- New Loan Term: Actual loan duration with extra payments
IFRS 9/FRS 102 Results
- Gross Loan: Original loan amount
- ECL Allowance: Expected credit loss amount
- Carrying Amount: Net loan after ECL allowance
- Effective Interest Rate: IFRS-compliant EIR
- Representative APR: Includes all fees and costs
Step 7: View Amortization Schedule
Click "View Amortization Schedule" to see:
- Payment-by-payment breakdown over the loan term
- IFRS 9/FRS 102 compliant calculations
- Effective interest rate amortization
- Opening and closing balances for each period
- Extra payments included in the schedule
Step 8: Export Your Results
Click "Export to Excel" to download a comprehensive CSV file containing:
- Summary Information: Property details, loan amounts, rates
- Loan Terms: Interest rates, effective rates, representative APR
- Monthly Costs: Breakdown of all payment components
- Total Costs: Complete cost analysis over loan term
- Extra Payment Analysis: Savings and term reduction
- Amortization Schedule: IFRS 9/FRS 102 compliant schedule
- Regulatory Notes: IFRS compliance and disclaimer information
Export Features
- Professional CSV format compatible with Excel
- Includes IFRS 9/FRS 102 compliance calculations
- Perfect for sharing with lenders or accountants
- Contains complete amortization schedule
- Includes legal disclaimers and compliance notes
- Extra payment impact analysis
Tips for Best Results
- Compare multiple scenarios: Try different loan terms, rates, and payment amounts
- Consider extra payments: Even small additional amounts can save thousands in interest
- Factor in all costs: Don't forget council tax, insurance, and other ongoing expenses
- Check first-time buyer benefits: You may be eligible for stamp duty relief
- Use realistic rates: Research current market rates from multiple lenders
- Consult professionals: Always seek independent financial advice before making decisions
Common Scenarios
First-Time Buyer
- May be eligible for stamp duty relief
- Consider Help to Buy schemes if available
- Larger deposits typically get better rates
- Consider longer loan terms for lower initial payments
Buy-to-Let
- Higher interest rates typically apply
- Consider interest-only loans for tax benefits
- Factor in rental income vs mortgage payments
- Account for property management fees
Remortgaging
- Include early repayment charges from current loan
- Consider new arrangement and valuation fees
- Factor in potential savings from lower rates
- Account for any new affordability requirements
Important Disclaimer: This calculator provides estimates for planning purposes. Actual payments may vary based on your specific loan terms, credit score, and lender requirements. Always consult with a qualified mortgage professional for exact payment amounts.