Understanding Your Monthly Mortgage Repayments
Monthly mortgage repayments are the regular payments you make to your lender to pay off your home loan. These payments typically include:
-
1.
Principal: The amount you're paying towards the original loan amount.
-
2.
Interest: The cost of borrowing money, calculated as a percentage of the remaining loan balance.
-
3.
Insurance: Some mortgages include buildings insurance in the monthly payment.
-
4.
Taxes: In some cases, property taxes might be included in your monthly payment.
Your monthly repayment amount depends on several factors:
-
1.
Loan amount: The total sum you've borrowed.
-
2.
Interest rate: The total sum you've borrowed.
-
3.
Loan term: The length of time you have to repay the loan (usually 25-35 years in the UK).
-
4.
Repayment: Whether you have an interest-only or repayment mortgage.
Use our calculator below to get an estimate of your monthly repayments. Remember, this is a general guide – for a precise figure, consult with a mortgage advisor who can take into account your specific circumstances and the latest deals available.
