Mortgage and loan calculator

How the payment is calculated

Most mortgages and consumer loans are repaid in equal monthly instalments (an annuity). Each payment first covers the interest on what you still owe, and the rest reduces the debt — so early payments are mostly interest and later ones mostly principal.

Loan-to-value (LTV) is the loan as a share of the price. Lenders usually offer better rates below 80% LTV, and some require mortgage insurance above it.

Ways to pay less

• Compare the annual percentage rate (APR) from several lenders, not just the headline rate — the APR includes fees.
• A bigger down payment lowers both the payment and the total interest, and often gets a better rate.
• Even a small extra payment each month can take years off the loan — check whether your lender charges for early repayment.
• Keep a cushion: rates, taxes and insurance can change, and a fixed rate usually lasts only for a set period.

The results are estimates for guidance only. A lender's offer depends on your credit history, fees, insurance and local rules — always check the final figures with the lender.

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