How much can I borrow
Mortgage lenders have changed their approach to mortgage applications due to the new rules governing the mortgage lending market.
Lenders will now look to assess the affordability of the mortgage, and to do that they will often ask for the following:
- Details of your employment
- Your income
- Your monthly outgoings
- Your mortgage application
Find our mortgage table above that shows best mortgage deals available.
How to calculate mortgage repayments
The size of your monthly mortgage payments could be a large factor when deciding to take a mortgage out.
Finding out how much you will pay each month is important, and you can use our mortgage calculator to see how much you will pay on a monthly basis.
Complete the mortgage calculator by inputting:
- 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 putting in the information above, the mortgage calculator will generate a list of the mortgages tailored to your needs.
What is a fixed rate mortgage
Fixed rate mortgages are mortgages that provide a set interest rate for the introductory period of the mortgage. Traditional lenders, such as high street banks, will usually offer fixed terms for 2,3,5 or 10 years.
A fixed rate mortgage may be beneficial, as it can allow you to know exactly how much money you will pay each month for the duration of the fixed term. However, when deciding on the length of the fixed term, bear in mind that interest rates change over time. Therefore, a good interest rate today may not be as good later down the line.
NatWest offer a fixed rate mortgage with competitive interest rates and a variety of loan to value options.
What is a tracker rate mortgage
Tracker mortgages are mortgages that have a variable interest rate, which is closely linked to the Bank of England’s base interest rate. Tracker mortgages’ interest rates will decrease or increase depending on whether the Bank of England raise or drop their base rate.
Repayment or interest only
Mortgages that require you to pay both the capital and interest on the mortgage are called repayment mortgages. At the end of the mortgage you will own the property outright, but as a trade-off the mortgage payments are usually higher than other mortgages.
There are mortgages that only require the interest of a mortgage to be paid, these mortgages are called interest only mortgages. Although interest only mortgages often have lower monthly payments, they do not allow you to own the property at the end of the mortgage.
If you want to pay your mortgage off more quickly, you may want to start making overpayments. There are some lenders who are prepared to accept overpayments on mortgages, but other lenders are not so flexible and they will charge early repayment charges if overpayments are made.
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.