How much can I borrow
New rules implemented by traditional lenders have affected the mortgage lending process.
Lenders will now focus on affordability above anything else. In order to assess your affordability, lenders will review the following:
- Your credit score
- Your employment
- Your income
- Your monthly outgoings
If you are moving home, find out what you could borrow with the mortgage table above.
How to calculate mortgage repayments
It is important to work out how much your monthly mortgage payments will be.
Our mortgage calculator can give you an idea of the size of your monthly mortgage payments.
Simply complete the fields in the calculator with 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 mortgage.
Once you have filled in all the necessary fields, our mortgage calculator will be able to provide you with the best mortgage deals available.
What is a fixed rate mortgage
A fixed rate mortgage allows you to secure a set interest rate for an agreed period of time. Typically, high street banks offer fixed rate mortgages from 2,3,5 or 10 years. It should be noted that the interest rates will vary depending on the length of the fixed term.
Fixing your interest rate could be an attractive prospect, as you know exactly how much your mortgage payments will be for a set period of time. However, you cannot predict exactly how interest rates will look throughout your fixed term. Therefore, an interest rate that is attractive now may not look so favourable in the near future.
If you are moving home, then you might want to investigate all your options before committing for a long fixed rate mortgage.
Post Office are offering some great fixed rates on their mortgages.
What is a tracker rate mortgage
A tracker mortgage is a mortgage with an interest rate that is closely connected to the Bank of England’s base rate interest. This means that if the Bank of England increases their base rate, tracker mortgages’ interest rates will follow suit.
Repayment or interest only
A repayment mortgage is where you pay both the capital and the interest of a mortgage. These mortgages usually have higher monthly payments, but they give you the chance to own the property at the end of the mortgage term.
An interest only mortgage is where you only pay the interest on a mortgage. With an interest only mortgage you do not get to own the property at the end of the term; however, these mortgages generally have cheaper monthly mortgage payments.
Some lenders are prepared to allow you to make overpayments on your mortgage. This could enable you to pay off your mortgage quickly. If you do intend to make overpayments on your mortgage, you should check with your lender. This is because there are lenders that charge early repayment penalties for those who overpay their mortgage.
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.