A mortgage is likely the largest financial commitment you’ll make. Understanding your monthly repayments and total interest costs is essential for budgeting and comparing deals.
Repayment vs Interest-Only
With a repayment mortgage, you pay off both capital and interest each month, so the loan is fully cleared by the end of the term. With interest-only, your monthly payments are lower but you must repay the full capital at the end — requiring a separate repayment strategy.
How Much Can You Borrow?
Most UK lenders apply a 4–4.5× salary multiple as a maximum loan amount. On a £50,000 salary, you could typically borrow £200,000–£225,000. The larger your deposit, the better interest rates you’ll be offered — rates improve significantly at 75% and 60% LTV (loan-to-value).