If you’re considering a mortgage, you probably have lots of questions.
You may be wondering how much you can borrow, how to calculate mortgage repayments, or whether you’ll be better off making monthly mortgage repayments or renting.
A helpful first step is to take a look at the various mortgage calculators available.
Depending on your circumstances, you may need to calculate a number of different things, and you may also need a specialised calculator, such as a buy to let mortgage calculator, or a help to buy mortgage calculator. These are the types of mortgage calculators you may want to consult if you’re applying for a mortgage in the UK.
Here’s a rundown of some of the different calculators…
An affordability calculator
Most basic mortgage calculators are affordability calculators. They'll generally ask for the number of people on the mortgage, your annual income, your mortgage term, and interest rate. They'll then calculate monthly repayments based on the information you’ve given them.
A borrowing calculator
These are useful if you already have a property in mind. You can enter the property cost, your annual income and the deposit you have available, to see if you can afford that particular property.
A stamp duty calculator
Many home buyers forget about stamp duty when looking at the cost of a new home, but it can be significant. There are calculators that will work out the stamp duty due on your home. You’ll need to input the price of your home, and answer a few other questions, such as whether you’re a first time buyer, and if you’re buying a second home as a buy to let property.
An overpayment calculator
Overpayment calculators allow you to see how much money you could save when you make extra payments.
This could be:
- A one-off (which might happen, for example, if you receive an inheritance or other windfall)
- A regular extra monthly payment (which might be possible if you get a raise or your outgoings decrease).
Remember that not all mortgages allow for overpayments, so check in advance if this is something likely to affect you.
The above calculators will give you an idea of exactly how much you could borrow. If you already have a mortgage and want to pay it off quicker, the overpayment calculator is a useful tool. But those with an existing mortgage may also be interested in one other kind of calculator:
A remortgage calculator
This calculator will let you know if you can save money by remortgaging, either with your current lender or a new one. It’s possible that there's a better deal you could switch to, to cut your current monthly repayments.