Use our free limited company mortgage calculator - repayment mortgage to instantly calculate your monthly payments including both principal and interest. Build equity in your buy-to-let property while seeing exactly how much you'll pay over the full term.
This calculator is designed for UK landlords and property investors who own rental properties through a limited company structure with capital repayment mortgages.
Enter your property and mortgage details below to calculate your monthly repayments and see how your equity builds over time.
Loan Amount
£187,500
Monthly Repayment
£1,151
Principal + Interest combined
First Month Interest
£859
First Month Principal
£292
Total Amount Payable
£345,375
Total Interest Over 25 Years
£157,875
Estimated Monthly Cash Flow
£49
Rental Income - Mortgage Payment (before expenses)
Gross Rental Yield
5.76%
This calculator provides estimates only. Actual mortgage payments may vary. Consult with a mortgage advisor for accurate figures.
See how an interest-only mortgage compares with lower monthly payments but no equity build-up.
Understanding the difference between repayment and interest-only mortgages for your limited company
Capital + Interest
Part of each payment reduces your loan balance
No lump sum repayment needed
Interest reduces as balance decreases
May reduce monthly cash flow
Best for: Long-term investors who want to own properties outright and don't need maximum cash flow
Interest Only
Only pay the interest each month
More profit retained from rental income
Capital can be deployed elsewhere
Must repay full amount at term end
Best for: Portfolio landlords seeking maximum cash flow who plan to sell or refinance
A repayment mortgage (also called a capital repayment mortgage) is where each monthly payment includes both interest charges AND a portion of the original loan amount. This means your mortgage balance decreases with every payment you make.
By the end of the mortgage term, you will have repaid the entire loan and own the property outright. While monthly payments are higher than interest-only mortgages, you pay less interest overall because the balance you're charged interest on gets smaller over time.
Year 1
Year 12
Year 25
* Illustrative only - actual split depends on your interest rate and term
Why some property investors choose capital repayment mortgages
At the end of the mortgage term, your company owns the property completely with no outstanding debt. Pure passive income from that point.
Because you're paying down the balance, you'll pay significantly less interest over the full term compared to an interest-only mortgage.
Each payment increases your company's equity in the property. This improves your balance sheet and gives more security.
As you repay the mortgage, your loan-to-value ratio improves, potentially giving access to better rates when remortgaging.
Unlike interest-only, you don't need to plan how to repay a lump sum. The mortgage naturally pays itself off.
Ideal for building long-term wealth and creating unencumbered assets for retirement or inheritance planning.
Our specialist accountants can help you understand the tax implications of different mortgage structures for your limited company property portfolio.
Common questions about repayment mortgages for limited company buy-to-let properties
A repayment mortgage (also known as a capital repayment mortgage) for a limited company is a buy-to-let mortgage where each monthly payment includes both the interest charges AND a portion of the original loan amount (principal).
With each payment, your company's outstanding mortgage balance decreases. By the end of the mortgage term, the entire loan is repaid and your company owns the property outright with no remaining debt.
Repayment mortgage payments are calculated using an amortisation formula that ensures:
The formula is: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ - 1], where M is the monthly payment, P is the principal, r is the monthly interest rate, and n is the number of payments.
No - only the interest portion of your mortgage payment is tax-deductible. The capital repayment part is not an expense; it's a reduction in your company's liabilities.
For example, if your monthly payment is £1,200 with £800 interest and £400 capital:
This is why some landlords prefer interest-only mortgages for better cash flow and full deductibility of mortgage costs.
The choice depends on your investment strategy and goals:
Choose Repayment if:
Choose Interest-Only if:
Many landlords use a mix of both across their portfolios.
Yes, in most cases you can switch from interest-only to repayment mortgage. This can usually be done by:
Be aware that switching to repayment will increase your monthly payments significantly. Make sure the rental income can cover the higher payments before switching.
Most lenders require a minimum deposit of 25% for limited company buy-to-let mortgages, whether repayment or interest-only. This means a maximum 75% loan-to-value (LTV).
Some lenders offer higher LTV options (up to 80-85%) but typically at higher interest rates. With repayment mortgages, your LTV naturally improves over time as you pay down the balance.
For the best rates, many experienced landlords aim for 35-40% deposits initially, knowing their equity will grow with each payment.