How much can I borrow
The mortgage application process with high street banks has changed recently due to new rules regarding the mortgage lending market.
The majority of high street banks will require details of your credit history, your employment, your income and monthly outgoings to process your application. This is because lenders’ main focus is affordability.
If you are over 60 and need a mortgage, find out what you could borrow with the mortgage table above.
How to calculate mortgage repayments
Use our mortgage calculator to work out how much your mortgage payments will be each month.
To use the calculator, simply 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 mortgage.
When you have put all the information needed, the calculator will provide a list of the mortgages available to you.
What is a fixed rate mortgage
Fixed rate mortgages are mortgages that offer a set interest rate for an agreed period of time. The majority of banks offer fixed rate mortgages for 2,3,5 or 10 years.
By fixing your interest rate for a prolonged period of time, you can plan your finances more accurately because you know exactly how much you need to pay for your mortgage each month for the initial term.
Bear in mind that interest rates may change over the course of your fixed term. So a good interest rate today may not be as good mid-way through your fixed term.
Post Office are offering some great fixed rates on their mortgages.
What is a tracker rate mortgage
Tracker mortgages are mortgages that have variable interest rates. The interest rates on tracker mortgages are determined by the Bank of England’s base interest rate. Therefore, tracker mortgages’ interest rates will increase or decrease depending on what the base rate is.
Repayment or interest only
Interest only mortgages are typically much cheaper than other types of mortgages. This is because you only have to pay the interest of the mortgage each month. It is important to consider that interest only mortgages do not allow you to own the property at the end of the mortgage.
Repayment mortgages are mortgages that require you to pay both the capital and the interest on a mortgage each month. This means that the monthly payments are higher than other mortgages, but you will own the property at the end of the mortgage.
One way of paying off your mortgage quickly is to make overpayments. By paying more than you need to each month, you can reduce the remaining amount on your mortgage significantly. Before making an overpayment you should check with your lender, as some lenders may charge early repayment charges if you overpay your 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.