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Mortgage Amortisation Calculator

Understanding how your mortgage repayments are distributed between principal and interest is crucial for effective financial planning. Our Mortgage Amortisation Calculator helps you visualise your repayment schedule, giving you clarity on monthly and annual costs.

Mortgage Amortisation Calculator

Mortgage Amortisation Calculator

Why Use a Mortgage Amortisation Calculator?

A mortgage amortisation schedule shows how each payment is split between reducing your loan balance (principal) and paying interest. It’s a valuable tool for:
  • Understanding Repayment Progress: See how much of each payment reduces your loan balance.
  • Planning Extra Payments: Identify how additional payments could save interest and shorten your loan term.
  • Budgeting: Forecast your future financial commitments.

How Does It Work?

Our calculator provides a detailed breakdown of your mortgage repayments:

1. Enter Loan Details

  • Provide the loan amount, interest rate, loan term, and start date.

2. View Monthly and Annual Summaries

  • First 24 Months: Payments displayed month-by-month.
  • Subsequent Years: Consolidated annual summaries for easier interpretation.

3. Analyse Your Repayments

  • Understand how much goes toward interest and principal each year, and how your balance reduces over time.

Example Scenario

  • Loan Details
  • Loan Amount: £250,000
  • Interest Rate: 3.5%
  • Loan Term: 25 years
  • First 24 Months
  • Monthly Payment: £1,252
  • Principal Paid (Month 1): £302
  • Interest Paid (Month 1): £950
  • Annually (After Month 24)
  • Year 3:
  • Total Payment: £15,024
  • Principal Paid: £4,200
  • Interest Paid: £10,824
  • Final Year
  • Year 25:
  • Total Payment: £6,012
  • Principal Paid: £5,950
  • Interest Paid: £62

Benefits of Using an Amortisation Schedule

1. Optimise Your Loan

Extra Payments: Plan additional payments to reduce your loan term and save on interest. .

2. Stay Financially Informed

Track how your loan balance decreases over time, ensuring you stay on top of your finances.

3. Evaluate Refinancing Options

Use the schedule to determine whether refinancing your mortgage could save you money.

Take control of your mortgage planning today.

Use the Mortgage Amortisation Calculator to understand your repayments and make informed financial decisions. Plan your mortgage journey confidently with Auction Finance.

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Frequently Asked Questions

Q 1. What is mortgage amortisation?
Ans: Mortgage amortisation refers to the process of gradually paying off a loan through scheduled repayments of principal and interest.
Ans: The monthly payment is based on the loan amount, interest rate, and loan term, using a standard amortisation formula.
Ans: Yes. Making extra payments reduces your loan balance faster, saving interest and shortening the term.
Ans: In the early years of your loan, interest makes up a larger portion of each payment. As the loan balance decreases, more of each payment goes toward the principal.
Ans: This version of the calculator does not include additional payments, but future iterations may include this feature.
Ans: Displaying annual summaries simplifies the schedule, making it easier to interpret long-term trends without losing key details.
  • Auction Finance specialises in structured financing solutions for property auctions. Our expert team prioritises a client-focused approach, offering competitive rates and flexible options for quick and efficient funding. Whether you're bidding on residential, commercial, or land, we are committed to supporting your auction success.

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