Mortgage interest rate calculator

The mortgage interest rate change calculator below can show how much your monthly repayments could go up or down, based on changes to your interest rate.

What is the current Bank of England (BoE) base rate?

The current BoE base rate is 5.25%.

  • The Bank of England base rate is an interest rate that has an impact on mortgage rates. The base rate, or ‘bank rate,’ is the cost at which banks can borrow money from the Bank of England.

    Banks and Building Societies tend to charge their customers the base rate plus a bit to borrow from them, including for mortgages.

     

    Why does the Bank of England change the base rate?

    The Bank of England changes the UK base rate to try to keep the cost of living – ‘inflation’ – at a steady rate.

    It reduces interest rates when the economy is not doing well and people may be finding it hard to pay bills and mortgages. The base rate is a major factor in mortgage interest rates.

  • When the base rate goes up, your mortgage repayments may go up. When they go down your mortgage repayments may go down.

    Whether the base rate impacts your mortgage repayments or not will depend on the type of mortgage that you have taken out:

    • A fixed-rate mortgage. A mortgage with a fixed interest rate means it won’t be affected when the base rate goes up. If the base rate goes down, you won’t pay any less, however.
    • A variable-rate mortgage. You are likely to be placed onto a SVR mortgage when your mortgage deal comes to an end. This increase isn’t likely to be as high as it is for those on a tracker mortgage, but it could still impact what you pay.
    • A tracker mortgage. Tracker mortgage repayments are usually tied to the base rate plus a certain percentage. So, if the base rate rises by 0.25% for example, your repayments will increase by this amount. If the base rate goes down, you could pay less.

Comparing fixed and variable rates 


There are different types of mortgage interest rates and each work in different ways. We’ve explained the differences below so you can choose the one best suited to your needs.

If you decide to take out a new fixed interest rate with us, we may charge you a fee, called a product fee. If you’re an existing customer, you won’t usually pay legal fees or need a new valuation, even if you switch when your current rate ends.

 

  • Fixed interest rate

    Variable interest rate -

    Lender variable rate

    Variable tracker rate -

    Tracker rate

    Fixed interest rate

    What are the different types of rates?

    Variable interest rate -Lender variable rate

    Your interest rate stays the same for a set amount of time.

    At the end of the fixed rate period, we’ll change you to another rate. This is usually one of our variable rates. 

    Variable tracker rate -Tracker rate

    We set our lender variable rate and we can change it, but it will only go up if there’s a:

    • change to our cost of lending or
    • change to laws and regulations. 

    Your interest rate is linked to the Bank of England base rate and changes if the base rate does.

    Your interest rate will be made up of the base rate plus or minus a percentage. 

    Fixed interest rate

    Can my interest rate change?

    Variable interest rate -Lender variable rate

    No, not during the fixed rate period. 

    Variable tracker rate -Tracker rate

    Yes, your interest rate will go up or down if we change our lender variable rate.

    Yes, your interest rate will change if the base rate goes up or down.

    Fixed interest rate

    Can my monthly payments change? 

    Variable interest rate -Lender variable rate

    We may update your monthly payment amount each year to make sure your payment is on track. For example, if you’ve made an overpayment.

    Variable tracker rate -Tracker rate

    Yes, your monthly payment can change if rates go up or down. If they go up, you could end up paying more than you budgeted for. 

    Yes, your monthly payment can change if rates go up or down. If they go up, you could end up paying more than you budgeted for. 

    Fixed interest rate

    Will I be charged if I overpay or pay my mortgage off early?

    Variable interest rate -Lender variable rate

    You may be charged if you repay all or part of your mortgage before the fixed rate period ends. We call this an early repayment charge.

    Variable tracker rate -Tracker rate

    You won’t usually be charged if you repay all or part of your mortgage. 

    You may be charged if you repay all or part of your mortgage in a certain amount of time after you take out a new tracker. We call this an early repayment charge. 

    We’ll let you know before making changes to your interest rate or monthly payments.

  • To help you work out which type of mortgage is right for you, here’s some things you might want to think about:

    • Would you like to know that your interest rate won’t change for a certain amount of time?
    • Could you afford to make higher monthly payments if interest rates go up?
    • Would you like to pay more than your usual monthly payment without being charged? You can find out more about Early Repayment Charges.
       

    If you need more information about these types of mortgage rates, you can call us on 0345 603 1637. We’re here Monday to Friday 8am to 8pm, and Saturday 9am to 4pm.  If you’d like some independent advice, you may want to talk to a financial adviser.

How our mortgage interest rate change calculator works

Use our interest rate change calculator to help you see how the cost of your mortgage repayments could go up or down.

What you’ll need

  • You will need to get your remaining mortgage balance and term from your most recent mortgage statement
  • You’ll need to know the interest rate you’ll be moving to

How it works

  • First enter your mortgage balance. This is how much you still need to pay to your lender
  • Then, the amount of time remaining until your mortgage is paid
  • Enter the current interest rate, then your mortgage type
  • Click on the plus and minus to choose the interest rate change amount you want to use

 

Current mortgage balance

You can find your mortgage balance in your most recent annual mortgage statement.

You'll need to take into account any payments made on your mortgage since the date of the statement. If you've fallen behind with your payments on any part of your mortgage that is a repayment mortgage, you'll need to take off the amount of arrears from the current balance.

Important: If you have a mortgage made up of part repayment and part interest only, you'll need to do a separate calculation for each.

£
Remaining term

The length of time you have left to pay back your mortgage.

You can find your remaining term details in your most recent annual mortgage statement.

Important: Please check the remaining term on your main account and each sub account.

Current interest rate

This is the interest rate for your sub account on the date shown.

You can find your interest rate details in your most recent annual mortgage statement.

Important: Please check the interest rate on your main account and each sub account.

Repayment type

This your current repayment method. It can be either Repayment or Interest Only. You can find your repayment details in your most recent annual mortgage statement.

Interest rate change

Use the + or - buttons to add and deduct amounts of 0.25%. Or just type in the rate change percentage you'd like to see illustrated.

Estimated monthly payment change

Based on your inputs, if the interest rate changed from ##currentinterestrate##% to ##newinterestrate##%, the approximate change to the monthly payment would be:

£##changerepayment## per month*

* The figure shown is for illustrative purposes only.

Based on your inputs, if the interest rate changed from ##currentinterestrate##% to ##newinterestrate##%, the approximate change to the monthly payment would be:

£##changeinterest## per month*

* The figure shown is for illustrative purposes only.

Where can I find my mortgage details?

You can find your mortgage details in your most recent annual mortgage statement or from Internet Banking. If you're not registering for Internet Banking yet, it's easy and only takes about 5 minutes to register.

I have more than one sub account, how do I use the calculator?

If your mortgage is made up of more than one sub account and some of these sub accounts are on variable rates, you will need to do a separate calculation for each sub account. To calculate the total change to your monthly payment, add each sub account calculation together.

You can find out if you have sub accounts on your most recent annual mortgage statement.

If a rate change takes place and it affects your mortgage, we will send you a letter confirming your new monthly mortgage payment before it is taken.

What are my next steps?

If your mortgage rate and monthly repayments are changing, then there are a few things you can do...
 

Switching your mortgage

Already have a mortgage with us and want to switch? Find out more about the deals that may be available.

Switching mortgages with Lloyds Bank

Mortgage calculators

See how much you could borrow and learn how remortgaging or overpaying could affect your repayments with our mortgage calculators.

Use our mortgage calculators

Worried about paying your mortgage?

Don’t wait until you’re about to miss a payment before getting in touch. The sooner you talk to us, the more options you’ll have. We have tools and guides to support you, and talking to us won’t affect your credit rating.

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Contact us

Need help with understanding your mortgage interest rate? Get in touch to discuss your mortgage.

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You could lose your home if you don’t keep up your mortgage repayments