Mortgage Repayment Calculator
Calculate your estimated monthly repayments quickly and easily.
Understanding Monthly Mortgage Repayments
At ERG Finance, we believe informed clients make better decisions. Whether you’re purchasing your first home, expanding your portfolio, or refinancing, understanding how your mortgage is structured, and how you repay it, is fundamental. Here's a guide to the three core repayment types: Interest Only, Part and Part, and Full Capital Repayment.
What it means
Each monthly payment covers both the interest on the loan and a portion of the capital (the amount borrowed). Over the term of the mortgage, you gradually reduce the balance until the loan is fully repaid.
Key Benefits
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Loan is fully repaid at the end of the term.
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Predictable repayment structure.
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Builds equity in the property from day one.
Considerations
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Monthly payments are typically higher than interest-only, especially in the early years.
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Ideal for residential purchases where lenders favour lower risk.
Loan-to-Value (LTV) Impact
Lenders often allow higher LTVs (up to 95% in some cases) for capital repayment mortgages because the risk reduces over time as the loan is paid down. These products are widely accessible for both standard and complex borrower profiles.
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What it means
You only pay the interest on the mortgage each month. The capital remains untouched and must be repaid in full at the end of the term, typically using savings, investments, the sale of the property, or other assets.
Key Benefits
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Lower monthly payments.
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Greater flexibility and cash flow, particularly useful for higher earners or investors.
Considerations
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The debt doesn’t reduce unless you make voluntary capital repayments.
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A credible repayment strategy is essential and will be scrutinised by the lender.
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Not typically suitable for first-time buyers.
Loan-to-Value (LTV) Impact
LTVs are often restricted on interest-only mortgages. Many lenders will cap at 50-75%, although this can stretch to 80-85% with the right profile and supporting assets. Higher net worth, strong income, and robust exit strategies all play a part.for both standard and complex borrower profiles.
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What it means
A blend of both capital repayment and interest-only. For example, on a £500,000 loan, £300,000 might be on a capital repayment basis while £200,000 remains interest-only.
Key Benefits
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Balance between affordability and equity building.
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Offers a degree of flexibility—ideal for professionals with growing income or those expecting liquidity events.
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Reduces the capital repayment burden at the end of the term, compared to full interest-only.
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Greater flexibility and cash flow, particularly useful for higher earners or investors.
Considerations
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Still requires a repayment vehicle for the interest-only portion.
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Slightly more complex, often suited to bespoke advice.
Loan-to-Value (LTV) Impact
LTVs are often restricted on interest-only mortgages. Many lenders will cap at 50-75%, although this can stretch to 80-85% with the right profile and supporting assets. Higher net worth, strong income, and robust exit strategies all play a part.for both standard and complex borrower profiles.
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Estimated Monthly Payment
Estimated Monthly Payment
Total Interest Payable
Total Interest Payable
Total Cost of Mortgage
Total Cost of Mortgage
Mortgage Calculator
Total amount you plan to borrow.
How long you’ll take to repay the loan.
Total amount you plan to borrow.
Which Structure is Right for You?
There’s no one-size-fits-all answer. At ERG Finance, we provide tailored advice based on your financial profile, goals, and longer-term strategy.
Whether you're looking to maximise flexibility or secure the lowest long-term cost of borrowing, we can help identify the right structure, and the right lender, for your circumstances.
Disclaimer
The information provided above is for general guidance only and does not constitute personal financial advice. Mortgage eligibility, interest rates, and loan terms are subject to individual circumstances and lender criteria. Your home may be repossessed if you do not keep up repayments on your mortgage.
For tailored advice based on your unique situation, please contact ERG Finance directly.
This tool provides general estimates and does not constitute financial advice.
For a personalised mortgage assessment, please contact us.
ERG Private Finance Ltd - trading as ERG Finance is an Appointed Representative of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority: FCA Number 460421. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Buy to Let mortgages and Commercial Lending are not usually regulated by the Financial Conduct Authority.