How much can I borrow
Lenders have altered their mortgage application process due to the new rules surrounding the mortgage lending market. Lenders’ main focus is now on the affordability of the mortgage, and they will often request the following in support of an application:
- Details of your employment
- Your income
- Your monthly outgoings
If you need a £250,000 mortgage, find our mortgage table above that shows the best mortgage deals available.
How to calculate mortgage repayments
You can use our mortgage calculator to find out the size of your monthly mortgage repayments.
Simply input the following information into the corresponding fields of the mortgage calculator:
- 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
After correctly filling in all the information above, the mortgage calculator will produce a breakdown of the mortgage deals available to you.
What is a fixed rate mortgage
Fixed rate mortgages allow you to get a fixed interest rate for a set period of time. High street banks usually offer fixed rate mortgages for 2,3,5 or 10 years.
As interest rates are likely to change over the years, you should bear in mind that the interest rate you secure at the start of your fixed rate term may not be as competitive by the end of your fixed rate term.
Post Office are offering some great fixed rates on their mortgages.
What is a tracker rate mortgage
Tracker mortgages are mortgages that are closely linked to the Bank of England’s base interest rate. Tracker mortgages’ interest rates are variable and react to any movement of the Bank of England’s base rate. For example if the base rate increases, so do the tracker mortgages’ interest rate.
Repayment or interest only
Interest only mortgages are mortgages that allow you to keep your mortgage repayments down, as you only have to pay the interest of a mortgage.
Repayment mortgages are mortgages that require you to pay both the capital and the interest on a mortgage. This means that repayment mortgages often have higher monthly mortgage payments.
There are lenders on the mortgage market that are prepared to accept overpayments on a mortgage. Making overpayments on a mortgage is a sure-fire way of repaying the mortgage quickly. It should be noted that not all lenders allow overpayments, and some even charge early repayment penalties if overpayments are made. It is advisable to always check with your mortgage provider before making any 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.