mortgage is key for most buyers walking up the real estate ladder but it can be difficult to figure out its price.
The good news is that there are plenty of mortgage calculators that will do the hard work for you, estimating how much you can borrow, monthly repayments, and interest rates.
Getting a mortgage can be difficult because you need to put a deposit together and pass tough lenders’ affordability and income stress tests.
Others may require a deposit of 10% to 40% depending on the interest rate you intend and how much you can borrow.
Having an idea of how much you can borrow will help you decide what you need to save for a deposit and what type of property you can buy.
A lot of credit applications such as mortgages can push down your credit score, so it’s better to know how much you can borrow before actually going through the process.
There are many calculators online that allow you to do this without having to apply through a bank or construction organization.
We’ve rounded up the best mortgage calculators, what data you must provide, and how to find the best home loan:
Calculator to see how much you can borrow
The most common type of mortgage calculator tells you how much you can borrow from the bank.
These are usually stand-alone calculators, so what they tell you is an estimate, and the actual amount you can borrow will depend on the individual lender and your circumstances.
MoneySuperMarket.com – Try it now
This simple calculator just know how many people are buying a home, your income and any guaranteed bonuses.
It tells you how much you will easily get and the maximum you can be given depends on your circumstances.
What? – Try it now
The calculator also only asks how many people are applying for and what their income is.
It gives you an estimate of what you can afford and also gives you a playing ball to show what your monthly repayments could be.
Barclay’s Quick Affordability Calculator – Try it now
This calculator asks for the number of applicants, their income, any regular expenses, the reason you want a mortgage, and your deposit amount.
It tells you how much you can get and gives you an overall raw asset budget.
Money saver – Try it now
This calculator claims your earnings and any guaranteed bonuses or overtime.
It tells you the higher mortgage range you can expect to get a loan from, as well as how much you typically pay each month.
It also emphasizes that your credit score will make a difference, and lenders will also ask about your outgoings and debts.
Compare the market – Try it now
This calculator asks for salary and also has an option to add other guaranteed income. It also needs to know how much deposit you have.
It tells you the type of loan you can expect and the total amount you can afford to pay for a home.
Shoes – Try it now
The Trussle Calculator asks for your annual salary, your partner’s salary (if applicable) and a deposit.
It also has an option box to add to your regular monthly expenses, so it should give you a number that might be a little closer to what banks will actually lend.
It tells you how much you can borrow, your loan-to-value ratio, and the total price of the home you can afford.
How do you find the best mortgage deals?
WE explain how to make sure you get the best deal on your mortgage or mortgage remaining:
Sites like MoneySuperMarket and Moneyfacts have a mortgage section where you can compare costs. All banks and construction associations will also provide their offers on their websites.
If you are confused by all the deals in the market, you should talk to a mortgage broker who will help find the best mortgage for you.
A broker will typically cost between £300 and £400 but can save you thousands over the course of your mortgage.
You will also have to decide if you want a fixed transaction where the interest you are charged is the same for the duration of the transaction or a variable mortgage where the amount you pay can vary. subject to the Bank of England Base Rate. .
Keep in mind that you’ll also have to pass strict criteria for lender eligibility, including an affordability check and a review of your credit record.
You may also need to provide documents such as utility bills, proof of benefits, pay slips for the last three months, passport and bank statements.
Banks and societies build full mortgage calculators
Most banks and building associations have more thorough calculators that tell you how much they are prepared to lend you.
These often require more detailed information including money going out, credit cards and loans, how many children you have, are you self-employed and do you receive any bonuses and no overtime pay.
Nationwide even requires your date of birth and gender for calculations.
These calculators will give you a better idea of what you can afford, but it’s based on each provider’s lending criteria which can vary considerably.
Most have nothing to do with credit checks and won’t hold your personal information, so you should try a few just to see how your specific circumstances change what you can get.
Mortgage repayment calculator
Once you’ve used an affordability calculator to see what you can borrow, you can then use a mortgage calculator to show what your monthly payment will be.
Usually, you need to know the size of the mortgage, the length of the mortgage (how many years it will last), and the interest rate.
If you don’t know the interest rate, the calculators usually give you a number, but this number is higher than the best deals on the market.
It helps you know what the refunds will be like, but keep in mind that you can get a better price by shopping around.
If you don’t know the length of your mortgage, most calculators will give 25 years, which is the typical mortgage rate.
There are many of these computers out there and they tend to be pretty similar.
- Money saver – allows you to add mortgage fees and shows how your debt will decrease over time.
- Money consulting service – really simple and only requires deposit and house price.
- Compare the market – the repayment calculator is linked to the affordability calculator so it fills in the information for you.
Providers also often offer repayment calculators based on their specific lending criteria, which can be very helpful once you’ve narrowed your selection down to a few lenders.
Is there any help for first-time buyers?
Climbing the real estate ladder can feel like a daunting task, but there are plans to help first-time buyers own their own home.
Lifetime Isa – This is a Government scheme that gives anyone aged 18 to 39 the chance to save tax free and receive a bonus of up to £32,000 on their first home. You can save up to £4,000 a year and the Government will add an extra 25%.
Shared Ownership – Co-ownership with a housing association means you can buy part of the property and pay rent on top of the rest. You can buy anything from 25% to 75% of the property but you are limited to specific things.
Mortgage Guarantee Program – Program opens for new 95% mortgages from April 19, 2021. Applicants can purchase their first home with a 5% deposit, it is eligible for homes up to £600,000.
Other handy calculators
As well as the affordability and affordability calculator, there are a number of other tools that can be helpful when buying a home or when you’ve got a mortgage.
For example, online tools can help you calculate stamp duty, calculate how much you’ll save on overpaying, and even allow you to compare different mortgage offers.
These are some of the most useful we could find.
Money Saver Expert’s Calculator
- Overpayment calculator – Let’s take a look at each overpayment, recurring ones, and even combinations.
- Basic interest calculator – shows how your mortgage payments will be affected when the Bank of England prime rate changes.
- Mortgage Calculator – find out if you can save on your mortgage payments by switching to a new mortgage.
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https://www.thesun.co.uk/money/14676601/mortgage-payment-calculator-how-much/ How much can you borrow?