How much will my mortgage cost?
Last reviewed on 09 June 2016
Working out the cost
Whether you’re comparing mortgage deals, want to know how a rise in interest rates will affect your repayments or want to see how much it will cost to shorten your mortgage term, the table below can help.
It shows how much a repayment or interestonly mortgage would cost you each month if you borrowed £1,000 at a particular rate of interest for a set period of time. The figures in the table assume the interest charged on your mortgage is calculated on a daily basis.
How a change in interest rates will affect your repayments
Say you had a £100,000 repayment mortgage for 25 years and the rate of interest on it was 5%, your monthly repayments would be £584 (100 x £5.84 = £584). But if your mortgage rate fell to 4.5%, your monthly repayments would drop to £555 (100 x £5.55 = £555) saving you £29 (£584  £555 = £29) a month or £348 a year. On the other hand, if a couple of interest rate rises saw the rate increased to 7%, your repayments would be £706 (100 x 7.06 = £706) which is £122 a month more or £1,464 extra a year.
Interestonly mortgages
The monthly repayments are lower on interestonly mortgages than repayment ones as you only pay off the interest on the loan each month. But you pay more interest overall because you pay interest on the full amount you borrowed for the entire length of your mortgage. With a repayment mortgage the amount you owe, and therefore the amount on which you pay interest, reduces over time because you pay back some of the capital (the amount you originally borrowed) each month.
For example, if you borrowed £200,000 over 20 years at 4%, a repayment mortgage would cost you £1,210 (200 x £6.05 = £1,210) a month. Whereas with an interestonly mortgage the monthly repayments would be £666 (200 x £3.33 = £666). But with an interestonly mortgage, once you reach the end of the mortgage term or stop making the repayments, you still owe the full amount you originally borrowed – in this case £200,000.
Lenders usually won't lend on an interestonly basis these days unless you can show you have a way of paying back the amount you originally borrowed when the mortgage ends.
Changing the term of your mortgage
You can also see from the table below how much it would cost if you changed the term of a repayment mortgage. For example, if you borrowed £150,000 for 25 years at 6% interest your monthly repayments would be £966 (150 x £6.44 = £966). But if you wanted to reduce the term of the loan to 15 years the monthly repayments would be £1,264.50 (150 x £8.43 = £1,264.50). So for an extra £298.50 a month you could wipe 10 years off the term of your mortgage. By shortening the term of your loan you will also reduce the overall amount of interest you have to pay on the mortgage.
Mortgage Rate Table
MONTHLY MORTGAGE PAYMENTS PER £1,000 BORROWED* 



Repayment mortgage 
Interestonly mortgage 

Rate 
10 years 
15 years 
20 years 
25 years 

0.50% 
£8.54 
£5.77 
£4.38 
£3.55 
£0.42 
0.75% 
£8.65 
£5.87 
£4.49 
£3.66 
£0.62 
1.00% 
£8.76 
£5.98 
£4.60 
£3.77 
£0.83 
1.25% 
£8.87 
£6.09 
£4.71 
£3.88 
£1.04 
1.50% 
£8.97 
£6.20 
£4.82 
£4.00 
£1.25 
1.75% 
£9.08 
£6.32 
£4.94 
£4.12 
£1.46 
2.00% 
£9.19 
£6.43 
£5.06 
£4.24 
£1.67 
2.25% 
£9.31 
£6.55 
£5.17 
£4.36 
£1.88 
2.50% 
£9.42 
£6.66 
£5.29 
£4.48 
£2.08 
2.75% 
£9.53 
£6.78 
£5.42 
£4.61 
£2.29 
3.00% 
£9.65 
£6.90 
£5.54 
£4.74 
£2.50 
3.25% 
£9.76 
£7.02 
£5.67 
£4.87 
£2.71 
3.50% 
£9.88 
£7.14 
£5.79 
£5.00 
£2.92 
3.75% 
£9.99 
£7.26 
£5.92 
£5.14 
£3.12 
4.00% 
£10.11 
£7.39 
£6.05 
£5.27 
£3.33 
4.25% 
£10.23 
£7.51 
£6.19 
£5.41 
£3.54 
4.50% 
£10.35 
£7.64 
£6.32 
£5.55 
£3.75 
4.75% 
£10.47 
£7.77 
£6.45 
£5.70 
£3.96 
5.00% 
£10.59 
£7.90 
£6.59 
£5.84 
£4.17 
5.25% 
£10.71 
£8.03 
£6.73 
£5.99 
£4.38 
5.50% 
£10.83 
£8.16 
£6.87 
£6.13 
£4.58 
5.75% 
£10.96 
£8.29 
£7.01 
£6.28 
£4.79 
6.00% 
£11.08 
£8.43 
£7.16 
£6.44 
£5.00 
6.25% 
£11.21 
£8.56 
£7.30 
£6.59 
£5.21 
6.50% 
£11.33 
£8.70 
£7.45 
£6.75 
£5.42 
6.75% 
£11.46 
£8.84 
£7.59 
£6.90 
£5.62 
7.00% 
£11.59 
£8.97 
£7.74 
£7.06 
£5.83 
7.25% 
£11.72 
£9.11 
£7.89 
£7.22 
£6.04 
7.50% 
£11.85 
£9.26 
£8.05 
£7.38 
£6.25 
7.75% 
£11.98 
£9.40 
£8.20 
£7.55 
£6.46 
8.00% 
£12.11 
£9.54 
£8.35 
£7.71 
£6.67 
8.25% 
£12.24 
£9.69 
£8.51 
£7.88 
£6.88 
8.50% 
£12.37 
£9.83 
£8.67 
£8.04 
£7.08 
8.75% 
£12.51 
£9.98 
£8.83 
£8.21 
£7.29 
9.00% 
£12.64 
£10.13 
£8.99 
£8.38 
£7.50 
9.50% 
£12.91 
£10.42 
£9.31 
£8.73 
£7.92 
9.75% 
£13.05 
£10.58 
£9.47 
£8.90 
£8.12 
10.00% 
£13.18 
£10.73 
£9.64 
£9.08 
£8.33 
SOURCE: Moneyfacts June 2015
* The figures in this table are based on interest being calculated on a daily basis.