How much can I borrow
New rules to the mortgage lending market have influenced lenders to take a different approach to mortgage applications.
Now the affordability of the mortgage is the main concern of the mortgage lenders. To assess the affordability of a mortgage, lenders will often ask for:
- Details of your employment
- Your income
- Your monthly outgoings
Find our mortgage table above that shows best mortgage deals available.
How to calculate mortgage repayments
It may be prudent to find out how much you are going to pay each month, so you can plan your finances accordingly.
Our mortgage calculator can produce a list of the best mortgage deals available.
Simply fill in the fields in the mortgage calculator with the following information:
- 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 fixed rate mortgage
A fixed rate mortgage is a mortgage that offers you a set interest rate for a certain period of time. The introductory fixed rate period is usually for 2,3,5 or 10 years.
Setting your interest rate on your mortgage can protect you from fluctuating interest rates, and it can allow you to forecast your monthly outgoings.
Interest rates will likely change over the course of your introductory period. This is important to note, as the interest rate your secure today may not be as attractive later down the line.
Santander 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 with interest rates that are liable to change over the course of the mortgage. This is because interest rates offered through tracker mortgages are heavily determined by the Bank of England’s base interest rate. If the Bank of England increase their base rate, then tracker mortgages’ interest rates increase.
Repayment or interest only
Repayment mortgages: these mortgages are often more expensive than other mortgages, as the monthly payments include the capital and the interest of a mortgage. As a result, repayment mortgages give you the opportunity to own the property at the end of the mortgage.
Interest only mortgages: these mortgages are usually cheaper than other mortgages, as they only require you to pay the interest on a mortgage. It should be noted that you cannot own a property outright with an interest only mortgage.
Making overpayments
There are a number of lenders that allow you to make overpayments on your mortgage. This may be advantageous, as it could enable you to pay off your mortgage much quicker than if you were to just make the minimal monthly payments.
It should be noted that not all lenders allow overpayments. Some lenders prohibit overpayments and will charge early repayment fees if overpayments are made.
