Consider a repayment mortgage of £250,000 over 25 years. For this illustration, the interest rate stays at 5% nominal throughout, interest is calculated monthly at 5% ÷ 12, and there are no fees or overpayments.

The model gives monthly payments of about £1,461.48 and total payments of about £438,443. The total uses the unrounded model payment; a lender’s final payment and daily-interest calculation can differ.

The large total comes from paying for borrowing over a long period. It is not a quotation or a prediction of rates after an initial fixed deal.