Mortgage repayment

How it works

See the payment and the balance behind it

A capital-repayment mortgage payment covers interest for the period and repays part of the amount borrowed. Early in a long mortgage, more of the payment is usually interest because the outstanding balance is higher. As the balance falls, more of a level payment goes towards capital.

The mortgage amount, interest rate and term drive the initial payment. The calculator can also include a product fee, an initial fixed period and an illustrative follow-on rate.

Read how mortgage repayments work

Understanding your result

Monthly cost is only part of the comparison

The initial payment uses the entered initial rate. The payment after the fixed period uses the entered follow-on rate and the projected balance at deal expiry. Balance milestones show how much capital could remain after selected years.

Total interest covers the modelled mortgage term and rate transition. Financing a product fee increases the starting balance and means interest is charged on that fee. Paying it upfront keeps it outside the mortgage but still affects the cash cost of the deal.

Assumptions and limitations

This is an illustration, not a mortgage offer

The calculation assumes payments are made as modelled and does not predict future rates. It excludes lender-specific rounding, affordability and credit checks, property eligibility, legal or valuation costs, insurance and early repayment charges.

If interest-only is selected, the monthly payment does not repay the mortgage capital. You would need a credible separate repayment plan and must repay the outstanding capital at the end of the term.