How much can I borrow
New rules have been introduced that have altered the way lenders view applications. The amount you can borrow will depend on your personal circumstances, and as a self employed person it is likely that banks will request the following:
- Details of the property
- Details of your employment
- A number of months bank statements
- Three years’ worth of tax returns
Find out mortgage table above that the best mortgage deals on the market.
How to calculate mortgage repayments
You can calculate how much your mortgage repayments will be with our mortgage calculator.
To operate the mortgage calculator simply input:
- The purpose of your mortgage
- The value of the property
- The amount you want to borrow
- The length of mortgage
- Your preference (capital and interest or interest only mortgages)
- The type of mortgage you want
Once you have correctly provided the information required, the calculator will produce a list of the best mortgages for you.
What is a fixed rate mortgage?
A fixed rate mortgage is a mortgage that provides a set interest rate for an agreed amount of time. Typically banks will offer fixed rate mortgages for 2,3,4 or 5 years.
Securing a set interest rate for a prolonged period of time may seem like a good idea. However, it should be noted that interest rates may fluctuate during your fixed term, so an interest rate that looks attractive now may not be so favourable a few years down the line.
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What is a tracker rate mortgage?
A tracker mortgage is a mortgage that has an interest rate that is closely linked to the Bank of England’s base rate mortgage. Therefore, if the Bank of England hikes their interest rate, then tracker mortgages’ interest rate will increase.
Repayment or interest only
Repayment mortgages: allow you to repay both the mortgage and its interest at the same time. The repayment mortgages typically have higher monthly mortgage payments.
Interest only mortgages: only require you to pay the interest of the mortgage. The loan repayments are often lower than other mortgages and can help you qualify for a larger mortgage in the future.
Overpaying on your mortgage could be a good way to pay of your mortgage quickly. It is important to note that some lenders are not prepared to allow overpayments, and could charge early repayment charges to those who overpay on their mortgage.