Start Your Home Buying Research with a Mortgage Calculator
The mortgage repayment calculator helps you estimate how much you could borrow to buy a house.
Mortgage Borrowing Calculator
See what you could borrow based on your income and deposit.
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Start your home-buying research with a mortgage calculator
What is a mortgage?
We’ve all been there: absent-mindedly scrolling, viewing homes for sale. Before you know it, you’ve seen the perfect property in the perfect area for the perfect price. Now you’re wondering how to scrape some figures together to see if you can actually afford it.
Since most of us aren’t sitting on lottery winnings, we rely on a mortgage to get us the keys to the ideal home. A mortgage is a home loan used to buy a house, usually secured through a trusted mortgage adviser. You’ll pay back the loan every month with interest over an agreed period, say 25 or 30 years. You’ll also put down a cash deposit (of at least 5%) of the property’s purchase price and pay the remainder using a mortgage from a bank or building society.
You’ll be able to get a better understanding of your budget and monthly payments by using a mortgage calculator.
What is a mortgage calculator?
To get a firmer grip on what your financial picture looks like, use a mortgage calculator. A mortgage repayment calculator is a powerful tool that helps you estimate how much you could borrow to buy a house and what your monthly mortgage payments would look like. This is a great first step in any buying journey to see what you can afford before making any financial commitments by taking out a mortgage or remortgaging.
Using the mortgage calculator
It’s never been easier to crunch your financial figures, determine your monthly payments and view the best mortgage deals via a skilled mortgage adviser.
Simply plug your information into the mortgage calculator and view the accurate figures. You’ll be connected to a mortgage adviser who will guide you through the process of selecting the best mortgage deals with the current mortgage rates.
Are you looking to remortgage? They will be able to help you with that too.
Mortgage interest rates
The Bank of England (BOE) base rate has been a hot topic in the news recently, and it’s wise for all home buyers to keep an eye on the latest goings on in the market. When the base rate changes, it impacts the UK mortgage market.
The mortgage interest rate today may not be the same as it was six months ago or what it will be in a year. To get to grips with interest, here’s how to calculate mortgage interest.
What type of mortgage deal can I get?
Most homebuyers take out repayment mortgages, where you pay back some of the overall loan and some interest each month.
There are interest-only mortgages, where you pay off the loan’s interest first and then repay the sum you originally borrowed at the end of the mortgage term.
There are different mortgage options to choose from, including:
Fixed-rate mortgage: This is the most common type of loan taken out by first-time homebuyers and homeowners who are remortgaging. With a fixed-rate mortgage, you’ll pay the same interest for a certain number of years (e.g. two, three, 10), regardless of what is happening with the Bank of England base rate. This offers some protection from rising interest rates. At the end of the fixed period, you’ll need to remortgage.
Tracker mortgage: These mortgages are variable rate deals which ‘track’ the Bank of England base rate plus a set percentage. For example, if the base rate is 5% and your offer is ‘base rate plus 1%’, then you’ll pay a rate of 6%. If the rate goes up, you can expect your monthly mortgage payments to increase. If it goes down, you should pay less each month – usually. Most lenders put in a ‘collar’ to ensure the rate you pay can only fall so far. At the end of the deal, you will need to remortgage or you’ll automatically be moved to your lender’s standard variable rate (SVR).
Discount mortgages: This tracks the mortgage lender’s standard variable rate. It will charge your lender’s SVR minus a fixed margin.
Standard variable rate (SVR): It’s an interest rate set by your lender, typically a few percentage points above the BOE base rate.
Working with a trusted mortgage adviser will help you find the best mortgage deals and secure the right one for your needs.
We're here to help
Check out our mortgages FAQ below, or, here are some other questions we’ve answered:
Please note: Your home may be repossessed if you do not keep up repayments on your mortgage. The actual monthly mortgage amount you pay will depend on your circumstances. There may be a fee for mortgage advice.
We’re here to answer your mortgage questions
Lenders will first look at your income when determining your mortgage affordability. Typically, most lenders will allow you to borrow up to 4.5 times your annual earnings. That means if you’re on a salary of £30,000, you may be able to borrow up to £135,000, subject to the lender’s affordability criteria. Buying a house with someone else who has a salary will boost your borrowing amount.
It’s sometimes possible to borrow more if you meet certain criteria. These higher amounts are often reserved for people within specific professions, such as doctors and dentists.
In addition to your salary, lenders will look into your monthly spending, deposit amount, age and employment when considering affordability.
When buying a house, you’ll need to have a deposit handy that will go towards the cost of the property. In a perfect world, you should have as much deposit as possible. For most mortgage offers, the larger the deposit you make, the lower your interest rate, although this can vary.
Current homeowners may be able to use their home’s equity towards the next property purchase. To start, know how much your home is worth with a free house valuation from a local expert.
To estimate the deposit you’ll need for the property you have in mind, get started with our mortgage calculator.
A sure way to find the best mortgage deals with the current mortgage rates is with the help of a mortgage adviser. With access to some of the best deals on the market, an expert can find the right mortgage offer for your needs.
After using the calculator above, you can then get in touch with our mortgage brokers. Our industry-leading knowledge has helped over 7,000 customers and counting to find the right deal for them.
No, our mortgage calculator does not require a credit check and won’t impact your credit score. It simply uses the information you enter to calculate how much you might be able to borrow and your repayment amount.
Only when you apply for a mortgage will you undergo a full credit check, which will be marked on your file.
So, you’ve used the calculator above to determine your monthly mortgage payments. Understanding mortgages can be overwhelming, especially for first-time buyers. If you’re ready to learn more and look for the right mortgage deal, start here. With a few basic details, you’ll be put in touch with an expert who can help you shop around for the right mortgage for your needs.
If you’re looking to sell your home and use any equity to buy your next house, book a free house valuation from a local expert. They’ll be able to give you a real-world figure of how much your home is worth.
Whatever your next step, we’re here to help you on your journey.