Frequently Asked Questions

This is your core mortgage calculator. Enter the loan amount, interest rate and term, and it shows your monthly repayment. The key insight: your payment is almost entirely interest in the early years.

Use this tab first — it gives you the baseline before you explore any of the other tools.

Because it is — at first. Amortisation is how your repayments are split between interest and capital (the actual debt) each month. On a standard repayment mortgage:

• In year 1, most of your payment goes to interest — very little reduces the actual debt
• The balance only starts falling meaningfully after the halfway point
• By the final years, almost all of your payment goes to capital

This is why overpaying early is so powerful — every pound off the balance reduces the interest calculated on the remaining debt for every single month ahead.

Usually yes — and the numbers are striking. Overpaying your mortgage reduces the outstanding balance, which means less interest is charged each month.

• Most lenders allow up to 10% of the outstanding balance per year without penalty
• Always check your mortgage terms before overpaying — early repayment charges (ERCs) may apply within a fixed-rate period
• Even small regular overpayments compound powerfully over time

The Overpayment tab lets you see exactly how much time and money a specific overpayment amount would save you.

One of the most powerful and least-known tricks in personal finance. Instead of paying 12 monthly payments a year, you make the equivalent of 13 — by paying half your monthly amount every two weeks (fortnightly).

Because there are 52 weeks in a year, fortnightly payments add up to 26 half-payments — which equals 13 full monthly payments. You make one extra full payment every year without it feeling like a lump sum.

• Check your lender allows fortnightly payments (most do)
• If not, simply divide your monthly payment by 12 and add that amount as a monthly overpayment — same effect
• This works because you're reducing the principal slightly faster every single month

You should start looking at remortgaging 3–6 months before your current fixed deal ends. The Remortgage tab helps you compare what you're paying now versus what a new deal would cost.

• When your fixed term ends, you automatically move to your lender's Standard Variable Rate (SVR) — which is almost always significantly higher
• Remortgaging to a new deal can save hundreds of pounds per month
• You can also remortgage to release equity, change your term, or consolidate debts (take professional advice on this)

Stamp Duty Land Tax (SDLT) is a tax you pay when buying property in England or Northern Ireland above certain thresholds. It's charged on the portion of the price that falls within each band — not the full price.

• First-time buyers get a higher nil-rate threshold (check current HMRC rates as these change)
• Additional properties (buy-to-let, second homes) pay a surcharge on top
• You pay SDLT on completion — it's usually arranged by your solicitor

Most lenders use income multiples — typically 4 to 4.5 times your annual salary (or combined income for joint applicants). But affordability checks go deeper than that.

• Lenders stress-test your ability to repay at higher interest rates (usually 3% above the current rate)
• They also look at outgoings: credit commitments, childcare, subscriptions, regular spending
• A mortgage broker can access lenders with more flexible criteria if you're self-employed or have a complex income

An offset mortgage links your savings account to your mortgage. Instead of earning interest on savings, your savings balance is deducted from your mortgage balance before interest is calculated.

• Most valuable for higher-rate taxpayers who would otherwise pay tax on savings interest
• Offset mortgages usually have slightly higher interest rates than standard deals
• You keep access to your savings — they're not locked away
• Best suited to those with substantial savings they can't use elsewhere

An interest-only mortgage means your monthly payment only covers the interest — not the actual debt. At the end of the term, the full loan is still outstanding and you must repay it in one go.

• Monthly payments are lower — which is why it's attractive
• But the balance never reduces unless you make separate capital repayments
• You need a credible repayment strategy (investment portfolio, property sale, pension lump sum)
• Lenders now require evidence of your repayment vehicle before approving interest-only

Buy-to-let (BTL) mortgages are for properties you rent out rather than live in. The key differences:

• Deposits are larger — typically 25% minimum
• Affordability is assessed on rental income, not just your salary
• Most BTL mortgages are interest-only
• Stamp Duty surcharge applies (currently 5% extra on top of standard rates — increased from 3% in October 2024)
• Mortgage interest is no longer fully tax-deductible for most landlords — only a 20% tax credit applies

The Standard Variable Rate (SVR) is the interest rate your lender charges once your fixed, tracker or discount deal period ends. Unlike the Bank of England base rate, lenders set their own SVR — and they set it high.

• SVRs typically run 3–5% above the base rate
• They can change at any time at the lender's discretion
• There's usually no tie-in or early repayment charge on SVR — so you can leave anytime

Life gets busy. The fixed deal ends quietly, no alarm goes off, and the mortgage just rolls onto SVR. Many people don't notice the rate change for months — or longer.

• Lenders are required to write to you before your deal ends — but the letters are easy to miss
• Some people assume remortgaging is complicated or expensive, so they don't bother
• Others mean to do it but keep putting it off
• In rising rate environments, some people feel paralysed and do nothing

Let's make it concrete. Meet Sarah:

A fixed rate locks your interest rate for a set period — usually 2, 3 or 5 years. Your payment doesn't change regardless of what happens to interest rates. Certainty and peace of mind.

A tracker mortgage follows the Bank of England base rate plus a set margin (e.g. base rate + 1%). When the base rate goes up, your payment goes up. When it falls, you benefit.

• Fixed = certainty, but you won't benefit if rates fall
• Tracker = flexibility and potential savings, but exposure to rate rises
• Tracker mortgages often have lower early repayment charges

There's no universal right answer — it depends on your circumstances and view on rates. Here's how to think about it:

• 2-year fix: Lower initial rate in some environments, more flexibility to remortgage sooner, but you face renewal risk in 2 years
• 5-year fix: Longer certainty, fewer remortgage costs over time, but you're locked in if your circumstances change (selling, moving, changing jobs)

A qualified mortgage adviser can model both scenarios with your actual numbers. Always ask to see the total cost over the comparison period, not just the monthly payment.

An ERC is a penalty charged by your lender if you pay off your mortgage — or a large chunk of it — during the fixed or discounted rate period. It's how lenders protect the income they were counting on.

• ERCs are typically 1–5% of the outstanding balance, reducing year by year through the deal period
• Most lenders allow 10% of the outstanding balance per year in overpayments without triggering an ERC
• ERCs don't apply once you're on the SVR

You can go direct — but a whole-of-market broker often gets you a better outcome, especially if your situation is anything other than very straightforward.

• Brokers access deals not always available direct to consumers
• They do the paperwork and liaise with the lender on your behalf
• For complex income (self-employed, multiple jobs, recent credit issues), a broker knows which lenders are most likely to approve you
• Many brokers are free to you — they're paid by the lender (though some charge a fee)

Your credit history is one of the biggest factors in whether you're approved and what rate you're offered. Lenders use it to assess how reliably you repay debts.

• Missed payments, defaults or CCJs can significantly limit your options and push up rates
• You don't need a perfect score — but knowing where you stand before applying is important
• Check your credit report for free at Experian, Equifax or TransUnion before applying
• Correct any errors — they're more common than you'd think
• Avoid applying for multiple mortgages in quick succession — each hard search can dent your score

LTV is the size of your mortgage as a percentage of the property value. It's one of the most important numbers in mortgage pricing.

• Lower LTV = less risk for the lender = better interest rates for you
• Rates typically improve at 90%, 85%, 80%, 75%, 70%, 65% and 60% LTV thresholds
• If your property has risen in value since you bought it, your LTV may have improved — check before remortgaging
• Overpayments reduce your balance, which also improves your LTV over time