IN PLAIN ENGLISH
Roughly what you pay the lender each month, so you can see it beside everything else.
FULL DEFINITION
What a mortgage costs each month, worked out from its balance, interest rate and the years left.
EXAMPLE
£150,000 at 4.5% a year with 25 years left. Repayment: about £833.75 a month. Interest-only: 150,000 × 4.5% ÷ 12 = £562.50 a month, and the £150,000 is still owed at the end.
HOW IT'S CALCULATED
Repayment mortgage: payment = balance × r ÷ (1 − (1 + r)^−n), where r = rate ÷ 100 ÷ 12 and n = years left × 12 (at 0% it is balance ÷ n). Interest-only: payment = balance × rate ÷ 100 ÷ 12, and it needs no term. It appears only once you have entered a rate — and, for a repayment mortgage, the years left. It assumes the rate stays fixed, so a variable or expiring deal will differ; it is not what your lender charges, which may add fees or use another schedule. The Liabilities view adds the payments of every mortgage that has one.
Educational content only. It is not personal financial advice.