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.
Interest is worked out monthly at one twelfth of the annual rate. Lenders may calculate interest differently (some charge it daily), so your actual payments can differ slightly.
Inputs for the home loan calculator with insurance
Property price
The price of the home.
Deposit
Your deposit.
Interest rate (per year)
The annual interest rate on your mortgage. The rate shown is only an example, so enter the rate from your quote.
Term
How many years you'll repay over.
Monthly insurance premium
The total of any insurance you pay monthly, such as buildings, contents or life cover. Enter 0 to leave it out.
CALCULATOR QUESTIONS
Home loan calculator with insurance questions
Is buildings insurance required for a mortgage?
Mortgage lenders usually require buildings insurance from exchange of contracts.
Do I have to buy insurance from my lender?
Usually not. You can normally choose your own insurer as long as the cover meets the lender's requirements.
Should I include life insurance?
If you pay for it monthly and want to see your total outgoings, add it to the premium.
Why is the total cost an estimate?
Insurance premiums change at each renewal, so the true total will differ.