How Much Can I Borrow
Mortgage lenders including Virgin Money have adopted a different approach to the way they consider mortgage applications, due to the new rules surrounding the mortgage lending market.
Lenders now will prioritise affordability of the mortgage over everything else, and will now request details of your employment, your income, your monthly outgoings to support your mortgage application.
Find our mortgage table above that shows best mortgage deals available.
How to calculate mortgage repayments
One of the deciding factors in taking out a mortgage is how high the monthly payments are.
You can find out how much you will pay each month for your mortgage by using our mortgage calculator.
Complete the fields on our 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
Once the information above has been input, the mortgage calculator will provide the details of the most favourable mortgages for your set of circumstances.
What is a fixed rate mortgage
It is possible to get a fixed interest rate on your mortgage for a prolonged period of time. Traditional lenders, such as banks, offer fixed rate mortgages for 2,3,5 or 10 years.
A fixed rate mortgage could enable you to forecast your finances more easily, as you will know precisely how much you need to pay each month on your mortgage. However, note that interest rates today will be different to interest rates a few years down the line. Therefore, the interest rate you secure today may not look as good in the middle of your fixed rate period.
Virgin Money offer a fixed rate mortgage with competitive interest rates and a variety of loan to value options.
What is a tracker rate mortgage
There are mortgages with variable interest rates, these are called tracker mortgages. The interest rates offered through tracker mortgages are heavily dependent on the Bank of England’s base rate, which means that tracker mortgages’ interest rates increase when the Bank of England hikes its base rate.
Repayment or interest only
Mortgages that allow you to own the property outright at the end of the mortgage are called repayment mortgages. These are usually more expensive because the monthly mortgage payments are made up of the capital and the interest on the mortgage.
There are mortgages that you can secure that do not give you the opportunity to own the property at the end of the mortgage called interest only mortgages. These mortgages are often cheaper than other mortgages, as you only have to pay the interest on the mortgage.
There are lenders on the market that allow borrowers to make overpayments on their mortgages. Making overpayments on a mortgage can help you pay off your mortgage more quickly. It should be noted that not all lenders are prepared to accept mortgage overpayments; some lenders even penalise overpayments with early repayment charges.