Understanding Mortgage Payments
Your monthly mortgage payment typically consists of four components, often called PITI: Principal, Interest, Taxes, and Insurance. The principal and interest make up the bulk of the payment and depend on your loan amount, interest rate, and repayment term.
Fixed vs Variable Rates
Fixed-rate mortgages lock in your interest rate for a set period (commonly 2, 3, or 5 years in the UK), meaning your monthly payments remain stable. Variable-rate mortgages (tracker or discount) can change with the Bank of England base rate, which means your payments could go up or down.
How Deposit Size Affects Your Mortgage
A larger deposit means a lower loan-to-value (LTV) ratio, which typically qualifies you for better interest rates. For example, a 10% deposit gives you a 90% LTV mortgage, while a 25% deposit gives you a 75% LTV mortgage with significantly lower rates.
Use Our Calculator
Try our free mortgage calculator to estimate your monthly payments and see a full amortisation schedule.