In-depth guide

UK mortgages: repayment vs interest-only mental models

UK borrowers often choose between fixed periods then reverting to the lender SVR, or trackers linked to Bank Rate. Use the calculator as a baseline payment illustration—then validate against your KFI/ESIS.

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Repayment mortgage mechanics

Most residential mortgages are repayment: each month you reduce principal unless on interest-only (usually requires a repayment strategy).

After the fixed period

Payments can jump when you roll onto SVR unless you remortgage. Scenario-test higher rates to stress-test affordability.

FAQ

Does this include stamp duty?
No—stamp duty is transaction-level; budget separately.
Can I model Help to Buy legacy scenarios?
Equity loan dynamics need bespoke modelling beyond a standard amortisation formula.
Is this regulated advice?
No—education only.

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