How much can I borrow
Due to new rules governing the mortgage lending market, lenders have changed the way they review mortgage applications. Lenders will now prioritise the affordability of the mortgage over anything else. It is likely that lenders will ask for details of your employment, your income and your monthly outgoings.
If you are looking for a 2 year fixed rate mortgage, find our mortgage table above that shows the best mortgage deals on the market.
How to calculate mortgage repayments
Our mortgage calculator can help you forecast your monthly mortgage payments with ease. Simply fill in the fields with 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 and the length of mortgage.
Once you have successfully completed the fields, the mortgage calculator will produce the best mortgage deals on the market.
What is a fixed rate mortgage
Fixed rate mortgages allow you to enjoy a set interest rate for the initial period. Banks often offer mortgages with fixed rate terms for 2,3,5 or 10 years.
However, as it is impossible to know what interest rates will do in the near future, you may agree a fixed rate mortgage with a competitive interest rate today that does not look as attractive in the middle of your fixed rate term.
What is a tracker rate mortgage
Tracker mortgages, unlike fixed rate mortgages, have variable interest rates. This is because the interest rates offered by tracker mortgages are determined by the Bank of England’s base interest rate. Therefore, when the Bank of England's base rate increases so do the tracker mortgages’ interest rates.
Repayment or interest only
Repayment mortgages: these mortgages allow you to own the property at the end of the mortgage. Typically, the monthly payments are higher than other mortgages because you have to pay the capital and the interest on the mortgage.
Interest only mortgages: these mortgages do not give you the opportunity to own the property outright. This is because you only pay the interest on the mortgage. On the flipside, the monthly mortgage payments are often significantly lower than other mortgages.
Making overpayments
There are lenders on the market that allow you to make overpayments on your mortgage. This could be an advantage, especially if you want to pay off your mortgage as quickly as possible. However, there are some lenders who prohibit overpayments; these lenders will charge early repayment fees if you make overpayments.
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.
