How much can I borrow
New rules have been implemented that have changed the mortgage lending market. Lenders now prioritise the affordability of a mortgage over anything else. In order to submit an application for a mortgage you will need to provide:
- Your credit history
- Details of your employment
- Proof of your income
- Your monthly outgoings
If you are retired and need a mortgage, find out what you could borrow with the mortgage table above.
How to calculate mortgage repayments
It is important to know exactly what your monthly mortgage payments will be, especially throughout retirement.
To get an idea of the size of your monthly mortgage payments, use our mortgage calculator.
Complete the fields with the information requested to find out the best mortgages available to you.
Simply enter the following information into the mortgage calculator to see what mortgages you could access:
- The purpose of your mortgage
- The value of the property
- The amount you wish to borrow
- The type of mortgage you want (either capital and interest or interest only mortgage)
- The length of mortgage
What is a fixed rate mortgage
A fixed rate mortgage gives you the chance to secure an interest rate for a set period of time. The majority of banks will offer fixed rate mortgages for 2,3,5 or 10 years.
Keeping your monthly mortgage payments at the same level for an extended period may be an appealing prospect. However, when choosing the length of a fixed term, you need to consider the possibility that interest rates will change during your fixed term. Therefore, a good interest rate today may not be the best interest rate mid-way through your fixed term.
What is a tracker rate mortgage
Tracker mortgages, or variable mortgages, have interest rates that are dependent on the Bank of England’s base interest rate. This means that tracker mortgages’ interest rates will increase if the Bank of England hikes its base rate.
Repayment or interest only
Interest only mortgages: only requires you to pay the interest on a mortgage. Typically, these mortgages are cheaper than other mortgages. Interest only mortgages do not enable you to own the property at the end of the finance.
Repayment mortgages: require both the capital and the interest of a mortgage to be paid. Although the monthly mortgage payments are usually higher than other mortgages, you will be able to own the property at the end of the mortgage.
Making overpayments
There are lenders on the market that are prepared to allow you to over pay your mortgage. Making overpayments on your mortgage could be a good way to make substantial progress on paying off your mortgage. However, note that not all lenders allow overpayments. A number of lenders will levy early repayment charges to those who make overpayments.
