How much can I borrow
The amount you can borrow will depend on your personal circumstances. New rules have been introduced that have altered the way lenders view applications. Nowadays, lenders are more focused on affordability, they will consider your employment, your income and your monthly outgoings amongst other factors.
Find out how much you could borrow with our mortgage table above.
How to calculate mortgage repayments
You can find out how much you can borrow and how much you will have to pay monthly towards your mortgage with our mortgage calculator above.
Simply input the purpose of your mortgage in the drop down menu at the top of the calculator, then the value of the property, followed by the amount you want to borrow. The calculator will then generate the best deals for you.
In addition, you can input the length of mortgage, your preference on capital and interest or interest only mortgages and the type of mortgage you want eg. tracker or fixed rate.
What is a fixed rate mortgage
A fixed rate mortgage is a mortgage that has a set interest rate, which is guaranteed for the entirety of the initial period. The majority of banks offer a range of fixed rate mortgages including 2,3,5 or 10 year options.
Although it may seem like an advantage to take out a mortgage with a set interest rate for a long period of time, it is impossible to forecast how interest rates will vary in the near future. For example one interest rate may look attractive now, but may not be so favourable a few years down the line. Therefore, it is important to thoroughly review all your options before taking out a fixed rate mortgage for a long period of time.
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What is a tracker rate mortgage
Tracker mortgages are heavily dependent on the base rate set by the Bank of England. This means that any hike in the base rate will result in an increase in tracker mortgages’ interest rates.
Repayment or interest only
Repayment mortgages, also known as capital and interest mortgages, are a type of mortgage that allows you to repay both the mortgage and its interest at the same time. Typically, repayment mortgages result in higher monthly mortgage payments.
Interest only mortgages are a type of mortgage that only requires the interest of the mortgage to be paid. Generally, the loan repayments are lower than other mortgages and can help you qualify for a larger mortgage in the future.
Paying more than your minimum mortgage repayment each month may be a good idea, as it could allow you to pay off your mortgage quickly. However, some lenders either do not allow you to make overpayments or limit the amount of overpayments you can make. You should bear in mind that typically lenders will levy an early repayment charge if you repay the mortgage too quickly.
If you want to explore your mortgage options, it is a good idea to speak to an independent mortgage broker who will be able to offer impartial advice.