📝 UK Mortgage Guide 2026
Buying a home is one of the biggest financial decisions you'll make. This AI-powered mortgage calculator helps you understand monthly payments, upfront costs, and provides smart recommendations to save thousands.
🏠 Understanding LTV (Loan-to-Value)
LTV is the percentage of the property price you're borrowing. Lower LTV = better interest rates:
- 95% LTV (5% deposit): Higher rates, limited options
- 90% LTV (10% deposit): Standard rates available
- 80% LTV (20% deposit): Good rates, more choices
- 60% LTV (40% deposit): Best rates available
📊 Current UK Mortgage Rates (2026)
- 2-Year Fixed: 4.5% - 5.5%
- 5-Year Fixed: 4.0% - 5.0%
- 10-Year Fixed: 4.5% - 5.5%
- Tracker Mortgages: Base rate + 0.5-1.5%
📜 Stamp Duty Land Tax (England & NI) 2026
- Up to £250,000: 0%
- £250,001 - £925,000: 5%
- £925,001 - £1.5M: 10%
- Above £1.5M: 12%
- First-time buyers: No stamp duty up to £425,000
💡 AI Smart Tips to Save Money
- Save for a larger deposit – 20% deposit gets best rates
- Use a mortgage broker – They find deals not available directly
- Overpay monthly – Even £100 extra saves thousands in interest
- Remortgage when fixed term ends – Avoid SVR (Standard Variable Rate)
- Check Help to Buy schemes – First-time buyers get government help
✅ Affordability Check
Banks typically lend 4-4.5 times your annual income. For a £300,000 property with 20% deposit (£240,000 loan), you need approximately £55,000-£60,000 annual income.