Home loan calculator with insurance

Insurance and your mortgage

Mortgage lenders usually require buildings insurance from the day you exchange contracts, so it's a cost to budget for alongside your mortgage. Contents insurance and protection policies, such as life insurance, are separate and optional, though often recommended.

Enter whatever monthly premiums you want to include. The calculator adds them to the mortgage payment to show your total monthly cost.

Worked example

Borrowing £250,000 at 4.5% over 25 years costs £1,389.58 a month. With a £40 monthly insurance premium, the total is £1,429.58 a month, and £428,874.36 over the full term including insurance.

The calculator works interest out monthly and adds your insurance premium as a flat monthly amount. Real premiums are usually renewed each year and may change.

Premiums can change

Insurance premiums are usually renewed every year and can go up or down, so the total over the term is an estimate.

What this calculator assumes

The calculator treats the home loan as a single loan on one nominal rate for the whole term, repaid in equal monthly payments, with interest worked out monthly at one twelfth of the annual rate. The monthly insurance premium you enter is added to the loan payment to give the total monthly cost.

It leaves out arrangement fees, stamp duty, early repayment charges and premium increases, so treat the result as a guide for comparing options rather than an offer.

Inputs for the home loan with insurance calculator