Mortgage Repayment Calculator

How will interest rates affect your mortgage?

The Bank of England (BoE) base rate, which currently sits at 3.75%, is the key interest rate in the UK and is important as it influences many other interest rates in the UK, most notably interest rates on savings and mortgages. When the BoE changes the base rate it has significant implications for the UK mortgage market. A rise in interest rates will inevitably result in an equivalent increase in monthly mortgage payments for customers with variable-rate mortgages or tracker mortgages. A base rate cut will result in a decrease in mortgage payments for these customers. In time, even fixed-rate mortgage customers will see their mortgage payments change, once their fixed-rate period comes to an end.

Mortgage interest rate calculator

The calculator below will help you to quickly calculate your mortgage repayments if there is a change in your mortgage interest rate:

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Step 1 - How to use our free mortgage calculator

To get started enter the original details of your mortgage and then enter the interest rate increase or decrease.

If you are on a variable rate or tracker mortgage:

1. Enter the original mortgage loan amount borrowed when you took out your current mortgage (i.e £200,000)
2. Select whether your mortgage type is repayment or interest-only
3. Enter the number of years you planned to borrow for (the term) when you took out your existing mortgage
4. Enter the current mortgage rate that you are paying, in the box titled “current rate” (i.e. 2%)
5. Input the increase in the interest rate you want to use. For example, if you want to see how a rise of 1% in the mortgage rate (i.e from 2% to 3%) would affect your repayments enter “1” in the box titled “Change”. If you want to see the impact of a drop in interest rates, then enter a negative number.
6. Click “Calculate”

Your results - The calculator will tell you the impact on your monthly mortgage payments. Just make sure that the “Current payment" matches your existing monthly mortgage payments.

If you are on a fixed-rate mortgage:

If you have a fixed-rate mortgage your mortgage repayments won’t immediately change when there is a change in the Bank of England base rate. However, when you come to remortgage at the end of your fixed-rate period the new interest rate you secure is likely to be different. To see the potential change in your monthly mortgage payments when you come off your fixed-rate mortgage deal follow these steps:

Part A: Calculate your current monthly payment

1. Enter the original mortgage amount you borrowed and whether its a repayment or interest-only mortgage.
2. Enter the original term of the mortgage (e.g. 30 years).
3. Enter your current fixed interest rate.
4. Set the "Change" box to '0' and click "Calculate".
5. Note down your "Current payment". This is what you are paying now.

Part B: Calculate your new potential monthly payment

Now, let's calculate the payment on your new deal. You will need your latest mortgage statement for this.

1. In the "loan amount" box, enter your current outstanding mortgage balance (this will be on your statement and is less than your original loan).
2. For the term, enter the number of years you have left on your mortgage (e.g., 25 years).
3. In the "current rate" box, enter the new interest rate you expect to get on your next deal (e.g. 4.5%).
4. Make sure the "Change" box is still '0' and click "Calculate".

Your results - The "Current payment" figure now shows your estimated new monthly payment. You can compare this to the result from Part A to see how much your payments might change.

Step 2 – Get a free mortgage review

The Bank of England’s base rate is currently 3.75% and market predictions are that it could rise to around 4.25% by the end of 2026, which would likely mean that mortgage rates would rise as well. So if you currently have a variable-rate mortgage or are coming to the end of your fixed-rate mortgage in the next 6 months I would strongly recommend you speak to a qualified mortgage adviser as soon as possible to lock in the best fixed-rate mortgage deal.

If you don’t already have a mortgage adviser then you can get a free mortgage review* from a vetted FCA-regulated mortgage adviser:

• Visit the link above
• Complete simple questions about your situation
• Enter your contact details
• You will be matched with a reputable FCA-regulated mortgage adviser

The mortgage adviser will give you a free consultation with no obligation.

If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Vouchedfor