How much stamp duty do I pay in England?

Stamp Duty Land Tax (SDLT) in England & NI: 0% up to £125,000 (£300,000 for first-time buyers), 2% £125,001-£250,000, 5% £250,001-£925,000, 10% £925,001-£1.5m, 12% above £1.5m.

What is the average UK mortgage rate in 2025?

As of 2025, average 2-year fixed rates are around 4.5-5.5% and 5-year fixed rates around 4.0-5.0%, though rates vary by LTV ratio and lender.

Should I overpay my mortgage?

Overpaying can save thousands in interest and reduce your term. Most lenders allow up to 10% annual overpayment without penalties. Check your mortgage terms first.

What is repayment vs interest-only mortgage?

Repayment: monthly payments cover both interest and capital, so the loan is fully repaid by the end. Interest-only: you only pay interest each month and must repay the full loan at the end.

UK Mortgage Calculator 2025/26 - Stamp Duty, Repayment & Overpayment

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Stamp Duty

Stamp Duty Breakdown

Band	Rate	Taxable Amount	SDLT

Amortisation Schedule (Yearly)

Year	Payment	Interest	Principal	Balance

Stamp Duty (SDLT) Rates 2025/26

Standard Rates (England & Northern Ireland)

Property Price Band	SDLT Rate
Up to £125,000	0%
£125,001 – £250,000	2%
£250,001 – £925,000	5%
£925,001 – £1,500,000	10%
Over £1,500,000	12%

First-Time Buyers: 0% on first £300,000 (properties up to £500,000), then 5% on the remainder.

Additional Properties: A 5% surcharge applies on top of standard rates for second homes and buy-to-let.

Understanding UK Mortgages

A UK mortgage is typically taken over 25–35 years. Most buyers choose a fixed-rate deal (2 or 5 years) for payment certainty, then remortgage. The loan-to-value (LTV) ratio affects your rate — lower deposits mean higher rates.

Repayment vs Interest-Only

Repayment: Each monthly payment covers interest plus a portion of the loan, so the mortgage is fully repaid by the end of the term. Total cost is higher than borrowing but delivers full ownership.

Interest-Only: You only pay monthly interest. The original loan must be repaid in full at the end, typically through savings, investments, or property sale. Monthly payments are lower but total interest is significantly higher.

Related Calculators

Frequently Asked Questions

First-time buyers pay 0% on the first £300,000 for properties up to £500,000. On a £400,000 property, stamp duty is 5% on £100,000 = £5,000. Properties over £500,000 do not qualify for first-time buyer relief.

Most lenders offer 4–4.5 times your annual income. A household earning £60,000 could typically borrow £240,000–£270,000. Specialist lenders may go to 5–5.5x for higher earners with strong affordability.

Overpaying reduces total interest and shortens your term. Most fixed deals allow up to 10% annual overpayment without penalty. On a £200,000 mortgage at 4.5%, overpaying £200/month saves over £30,000 in interest and cuts ∼7 years off the term.

The minimum is typically 5–10% of the property price. A 10%+ deposit gets better rates. A 25%+ deposit (75% LTV) unlocks the most competitive rates. First-time buyer schemes may help with smaller deposits.

Loan-to-Value (LTV) is the mortgage amount as a percentage of the property value. A £270,000 mortgage on a £300,000 property = 90% LTV. Lower LTV = better rates, as the lender has less risk. Key rate tiers: 90%, 85%, 80%, 75%, 60%.