How much can I borrow
As a result of the introduction of new rules, mortgage lenders have adopted a different method when considering mortgage applications.
Mortgage lenders’ main focus is now the affordability of a mortgage. In support of your application, you will now be expected to provide:
- Details of your employment
- Your income
- Your monthly outgoings
Find our mortgage table above that shows best mortgage deals available.
How to calculate mortgage repayments
Before taking out a mortgage it is advisable to see how much you will have to pay each month.
Our mortgage calculator can generate the best mortgage deals that are suited to your needs.
To find the best mortgage deals for you, complete the mortgage calculator with the following:
- The purpose of your mortgage
- The value of the property
- The amount you wish to borrow
- The type of mortgage you want
- Your preference on capital and interest or interest only mortgage
- The length of mortgage
What is a fixed rate mortgage
Fixed rate mortgages offer you the opportunity to pay a set amount of interest for the introductory period of your mortgage. Typically, high street banks offer fixed rate mortgages with introductory periods for 2,3,5 or 10 years.
By getting a fixed rate for the first few years of your mortgage, you can forecast exactly how much you will have to pay every month.
Although securing a fixed rate of interest may be appealing, interest rates will change over the course of your mortgage and the rate you secure at the start of your mortgage may not be as attractive half way through your fixed rate term.
Aldermore offer a fixed rate mortgage with competitive interest rates and a variety of loan to value options.
What is a tracker rate mortgage
Tracker mortgages are mortgages with interest rates that can change multiple times throughout the mortgage. Tracker mortgages’ interest rates are determined by the Bank of England’s base interest rate. If the Bank of England increases their base interest rate, then tracker mortgages’ interest rates increase.
Repayment or interest only
Interest only mortgages: these mortgages only require you to pay the interest on a mortgage, which means that interest only mortgages are usually cheaper than other mortgages. It should be noted that you cannot own a property outright on an interest only mortgage.
Repayment mortgages: these mortgages allow you to own the property outright at the end of the mortgage. This is because repayment mortgages include the capital and the interest of a mortgage in the monthly mortgage payments. As a result, repayment mortgages are often more expensive than other mortgages.
Making overpayments
Making overpayments on your mortgage can help you make significant progress on your mortgage. Some lenders are happy to allow borrowers to make overpayments on a mortgage, but a number of lenders prohibit overpayments and will charge early repayments penalties. It is advisable to contact your mortgage provider if you want to make an overpayment.
