Mortgage Insurance Calculator
Work out what lender mortgage insurance costs each month on a high loan-to-value mortgage and how long until the balance falls below the threshold.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →Borrowing above a threshold — usually 80% of value — normally triggers an insurance charge that protects the lender, not you. It is a real cost of a small deposit, and it disappears once the loan falls below the threshold, either by repaying principal or by the property rising in value.
Knowing the month it falls away matters, because in many markets removal is not automatic. You have to ask, and often pay for a valuation, and the saving starts only from the date you do.
The calculation
The premium is charged on the outstanding balance each month. The loan is amortised forward while the property is compounded at the growth rate, and the insurance stops in the first month the loan-to-value falls to the threshold.
Worked example
A 285,000 loan on a 300,000 property is 95% loan-to-value. At a 0.8% premium that is about 190 a month at the start. Repaying principal at 6.5% over 25 years while the property grows 3% a year, the balance reaches 80% of value after 3 years 7 months, by which point about 7,923 of premiums have been paid.
Removal is rarely automatic
Most lenders will not cancel the charge until you ask, and many require a fresh valuation at your expense. Diarise the month this calculator gives, request removal then, and the valuation fee usually pays for itself within a few months of saved premiums.
Turn a calculation into an enquiry
Buyers who run these numbers are ready to talk. Give every listing its own page with your photo, phone and WhatsApp on it — leads land straight on your phone.
Create your free property pageFrequently asked questions
Who does mortgage insurance protect?
The lender, not the borrower. It covers their loss if the property is repossessed and sold for less than the outstanding balance. You pay for it, and you get no protection from it whatsoever.
Can I avoid it?
By borrowing below the threshold, usually 80% of value. Where the deposit gap is small, the saving from crossing that line frequently exceeds the return on the extra deposit anywhere else.
Does property growth remove it faster?
Yes, often much faster than repayment alone, since growth applies to the whole value while repayment chips at the balance. That is why a revaluation is worth requesting after a strong couple of years.