Mortgage calculators are all over the internet, I’m sure you have probably come across many as you search the net. Mortgage calculators come in many different forms. The basic one is how much can I borrow, this will take your income and if you are applying for a mortgage with a partner or friend theirs too, apply a formula and give you an indication of what a mortgage lender is likely to offer you. You will find for a single application you normally get 4.5 times of your salary and if you are going in with a partner it will be around 4 times of the joint salary.
The monthly repayment mortgage calculator is fantastic when you know how much you want to borrow and you’ve got an approximate rate of interest that the mortgage will be attached too. Depending on whether you go for a repayment mortgage or an interest only mortgage most calculators will normally give you what each monthly repayment fee would be.
Having this figure means you can then make a budget, include all your expenses and hopefully you’ll have enough money to afford the repayments with a bit of breathing space for when interest rates do rise again. You can apply a couple of interest rates to the calculator, giving you a couple of different figures to work with. Applying an interest rate of 6 or 7 per cent will mean whatever type of mortgage you decide on you will always have enough funds to repay the mortgage.
You could of course go for a tracker or variable mortgage for the moment while rates are low and when the economy starts to recover lock yourself into a fixed rate mortgage. This is a risky strategy if you weren’t approved for a mortgage later and you can’t afford the higher repayments. You could go for a repayment mortgage now and take advantage of the fantastically low 0.5% base rate, possibly overpay on the mortgage, and then when interest rates rise again switch over to an interest only mortgage.
There are many variations of
mortgage calculators available on the internet, some sites offer very specific calculators like if you are after a buy to let mortgage. You can get an indication of the amount you would likely be offered on this type.
