What Affects My Monthly Mortgage Payments?
If you’re applying for a mortgage — or already have one — you might be wondering:
“Why do my monthly payments cost what they do?”
Your mortgage payments aren’t just a number pulled out of thin air. There are several factors that affect how much you pay each month. Understanding them can help you plan, budget, and even find ways to save.
In this blog, we explain what really goes into your monthly mortgage payments — and what you can (and can’t) control.
1. Loan Amount
This is the total amount you’ve borrowed from the lender.
The bigger the loan, the bigger the repayments — so the more deposit you put down, the lower your payments could be.
2. Interest Rate
This is one of the biggest factors. Whether you're on a fixed, tracker, or variable rate will affect how much interest you pay every month.
Even a small difference in interest (e.g. 4.8% vs 5.2%) can make a noticeable difference in your payments — especially over 25–30 years.
3. Mortgage Term
This is how long you take the mortgage over — typically 25, 30, or even 35 years.
Longer term = lower monthly payments, but more interest paid overall.
Shorter term = higher monthly payments, but less interest in the long run.
4. Type of Mortgage
Are you on a repayment mortgage or interest-only?
- Repayment: You pay off the loan + interest every month (most common)
- Interest-only: You pay only the interest, with the loan repaid later — usually used for buy-to-let or special situations
5. Property Value & Deposit Size
A bigger deposit usually means a lower interest rate — because you’re borrowing a smaller percentage of the property’s value.
This is called your loan-to-value ratio (LTV).
Lower LTV = better deals = lower payments.6. Changes in the Market
If you're on a variable or tracker rate, your payments can change depending on:
- Bank of England base rate
- Lender’s own rate changes
If you're on a fixed rate, your payments will stay the same until your deal ends.
What Can You Do About It?
- Compare deals before locking in
- Work with a mortgage adviser to find the right rate
- Pay a bigger deposit if you can
- Consider overpaying (if allowed) to reduce the term and interest paid
We’ll Help You Find a Monthly Payment That Works for You
At The Mortgage Lodge, we’re not here to throw numbers at you — we’re here to explain them.
We’ll help you understand what your monthly payments would look like before you commit, and show you smart ways to keep them affordable.
Ready to get started? Get in touch for expert, friendly advice.