How much can I borrow
The new mortgage lending rules have influenced lenders to change the way they view mortgage applications. Lenders now will focus on the affordability of a mortgage over everything else.
Typically, lenders will now ask for details of your employment, your income and your monthly outgoings to support your mortgage application.
If you are looking for a 5 year fixed rate mortgage, find our mortgage table above that shows the best mortgage deals on the market.
How to calculate mortgage repayments
You can calculate how much you will pay in mortgage repayments each month by using our mortgage calculator.
Fill in the calculator with the following information to see the best deals on the market:
- 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 5 year fixed rate mortgage
A fixed rate mortgage gives you the chance to pay a fixed amount of interest for a 5 year fixed set period of time. You will usually find fixed rate mortgages with terms for 2,3,5 or 10 years.
Although it may seem appealing to secure an interest rate for a set period of time, you never know how interest rates may fluctuate during your introductory period. Therefore, you should bear in mind that a good interest rate today may end up being a bad one mid-way through your fixed term.
What is a tracker rate mortgage
Tracker Mortgages are mortgages that have an interest rate that is heavily dependent on the Bank of England’s base interest rate.
Repayment or interest only
A repayment mortgage is a mortgage that gives you the opportunity to own the property at the end of the mortgage. This is because you have to pay both the capital and interest on the mortgage, which means that the monthly repayments are usually higher than other mortgages.
An interest only mortgage is a mortgage that only requires you to pay the interest on the mortgage. As a result, the monthly mortgage payments are often relatively low, but interest only mortgages do not enable you to own the property at the end of the mortgage.
Some banks are prepared to accept overpayments on a mortgage. This could be an appealing prospect, especially if you want to repay your mortgage quickly. However, there are some lenders who will levy an early repayment charge if you make an overpayment. Therefore, you should 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.