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How much can I borrow
New rules introduced to the mortgage lending market have altered how lenders review mortgage applications.
The focus of lenders' application process will be affordability. The requirements for a mortgage application will vary from lender to lender; however, they will typically require information regarding the following:
- Your employment
- Your income
- Your monthly outgoings
Find out what you could borrow with the mortgage table above.
How to calculate mortgage repayments
How much you will have to pay each month is a significant factor when deciding which mortgage to take out.
Complete our mortgage calculator to find the best mortgage and determine how much you will pay each month.
Input 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) and the length of the mortgage, and the mortgage calculator will produce a list of the best mortgages for you.
What is a fixed-rate mortgage
Fixed rate mortgages have a set interest rate for an agreed period. Typically, you can take out a fixed rate mortgage for 2,3,5 or 10 years.
It may seem like a good idea to secure an interest rate for a long period; however, it is impossible to know exactly how interest rates will change in the next few years. This means that an attractive interest rate now may not look so good in a few years.
The Post Office offer a fixed rate mortgage with competitive interest rates and a variety of loan-to-value options. Click here to view their latest deals.
What is a tracker rate mortgage
A large number of banks offer tracker rate mortgages. These mortgages have interest rates heavily dependent on the Bank of England’s base rate. Therefore, if the Bank of England’s base rate increases so does the tracker mortgages’ interest rates.
Repayment or interest only
If you want to pay off both the capital and the interest of a mortgage simultaneously, you might want to take out a repayment mortgage. Although the monthly payments are generally higher, repayment mortgages allow you to completely own the property once the term has finished.
Interest only mortgages require you to pay the mortgage's interest each month. As a result, the monthly payments are much smaller than other mortgages. Unlike repayment mortgages, interest-only mortgage do not enable you to own the property at the end of the term.
Making overpayments may be a good way of paying off your mortgage quickly. However, if you want to make regular overpayments, you should check with your mortgage provider; some banks will charge early repayment charges to those who make overpayments.
If you want to explore your mortgage options, speaking to an independent mortgage broker who can offer impartial advice is a good idea.