How much will my mortgage cost?

Mortgage cost calculator

Our mortgage cost calculator will help you get an idea of what your mortgage is likely to cost based on the amount you borrow, the interest rate and the number of years you plan to take to repay it. However, the rates and figures shown are for illustrative purposes and realistically the interest rate you pay will change during your chosen mortgage term. Before taking any mortgage out you should get a personalised illustration showing the full costs and charges, and if you have any questions, it is best to speak to a mortgage adviser.

What determines how much your mortgage will cost?

The cost of your mortgage depends on several factors, including how much you’re borrowing, your mortgage term, and the rate of interest you’re paying. If your mortgage is a repayment mortgage you’ll make monthly mortgage repayments which cover both the amount you borrowed and the interest due. If it’s interest only you’ll just be paying the interest rather than reducing the amount you owe. 

Can I make my monthly repayments more affordable?

On a repayment mortgage the longer the mortgage term you choose the cheaper your monthly payments will be, but you’ll end up paying back more overall. If you choose a shorter term, your monthly payments might be higher, but you’ll reduce the total amount of interest you need to pay back, as you’ll be paying off the loan more quickly.

If you’re not sure which mortgage deal is likely to be most cost-effective for you based on your individual circumstances, our mortgage partners at L&C can run you through the available options to make sure you’re getting the best deal possible.

Can I use the mortgage cost calculator if I’m remortgaging?

Yes. The mortgage cost calculator can be useful not just when you initially take out a mortgage but at any time your mortgage may be changing or you are considering remortgaging. It can help you work out the estimated cost for a new mortgage rate deal and you can compare the cost of two different mortgages.

Other mortgage costs — mortgage fees:

When choosing a mortgage, it’s important to consider any additional mortgage fees and charges you might have to pay.

Lenders usually charge two types of mortgage fee: an arrangement fee and a booking fee. The booking fee is a non-refundable charge paid on application that allows you to reserve the mortgage you want.

The arrangement fee is, as the name suggests, a fee charged by a lender to set up the mortgage on your behalf. It’s charged when your mortgage completes.

You’ll also need to factor in the valuation fee, charged by lenders for commissioning a mortgage valuation, which is a basic inspection of your property.

It’s also worth bearing in mind that if you do take a fixed or discounted rate then often these will come with Early Repayment Charges, which mean that if you want to repay your mortgage before the deal is up you could incur a large fee. 

How do I compare mortgage deals? 

Often the mortgage deals with the lowest rates carry the biggest fees, so it’s important to factor these in when trying to work out the best deal for you. If you’re taking out a relatively small mortgage, for example, it may be cheaper to choose a deal with a slightly higher interest rate but lower fees. If, however, you’re taking out a larger mortgage, it might be more cost-effective to take out a mortgage with a lower rate.

Our mortgage partners at L&C recommend annual cost as the best way to see which mortgage deal offers the best value for the size of mortgage you’re looking to take.

They calculate the annual cost by:

• Adding up all the fees associated with the mortgage deal and deducting any cash back to find total fees
• Dividing the total fees by the number of months the initial mortgage rate lasts to find the total fees per month
• Adding the total fees per month to your monthly mortgage payment and multiplying by 12 to calculate the annual cost

By comparing mortgage deals looking at annual cost you can see which one would be cheapest for you taking into account fees as well as the interest rate. The annual cost only applies to the initial deal as its always best to consider switching once the initial deal is over to see if you could save money.

How do I find the best mortgage rate?

This depends on the type of mortgage you want, your deposit, lender fees and more. Banks and building societies change their mortgage rates quite frequently, so let expert, fee-free brokers L&C to do the hard work for you. If you want to get an idea of the best rates available today, see our review of this month’s best mortgage rates.

Why get a mortgage with L&C?

If you’re not sure which mortgage deal is likely to be most cost-effective for you based on your individual circumstances, L&C’s expert advisers can run you through the available options to make sure you’re getting the best deal possible.

We have teamed up with L&C to bring you FREE mortgage advice. No hidden costs, just great service. You can start your mortgage online to see the deals you qualify for and how much you can borrow or speak to an expert adviser at L&C now on 0800 073 2326.

When should I apply for a mortgage?

The best advice is to start the process before you start seriously looking for somewhere to buy. Most estate agents and home sellers will expect you to have a mortgage agreement in principle (AIP) when you make an offer. Once you have an offer accepted on a property, you make your full mortgage application.

When should I remortgage?

It is good practice to remortgage every few years to ensure you are on the best deal and are not paying over the odds. Set a reminder for three months before your fixed deal is due to end. This will give you plenty of time to shop around and get your remortgage application completed in time for you to simply switch onto a better deal. 

How to Remortgage

Remortgaging your property essentially involves you switching from one mortgage to another.

You might be switching to a new and better deal with your existing lender, or you might decide to move to a new mortgage with a different lender.

There are lots of reasons to remortgage. You may have found a cheaper deal which can help you reduce your monthly outgoings, or want to increase the amount you’re borrowing, perhaps to fund home improvements. Read more about how to remortgage.

Do I need a mortgage broker?

Mortgage brokers – like the experts at L&C – can scour the market for you, looking for the right deal to suit your situation. They can help you save money on your current mortgage and make sure you’re not paying over the odds with your current deal. You can use a mortgage broker to help with a remortgage even if you plan to stay with your existing lender. They are also particularly helpful if you are self employed, buying a buy-to-let or think your situation is unusual in any way. They will know the lenders and deals that will work for you.

How do I get a mortgage?

You can start your mortgage or remortgage online to see the deals available to you or speak to an expert adviser at L&C now on 0800 073 2326. They are open 9-8 Mon-Thurs, 9-5.30 Fri, 9-5 Sat, 10-4 Sun.