UK Mortgage Payment Calculator
It used to be the case that if you wanted to know what your mortgage payments were going to be, you would have to rely on a mortgage broker or mathematician. Not any more. With the rise of the Internet you can get an idea of how much you are likely to need to pay each month by using an online UK mortgage payment calculator.
You can find online mortgage payment calculators at most of the big mortgage comparison sites and they are a useful tool. To get the most out of them you just need a few facts:
- The amount of the mortgage that you are applying for
- The interest rate
- The term of the mortgage (in years)
- Whether the mortgage is repayment or interest only
- If interest is calculated annually or daily/monthly
To get the most out of the mortgage calculator try playing around with different figures. If you are considering a variable rate mortgage that is at 6.2% see if you can still afford the payments if interests rates were to rise to 7.2%.
Traditionally mortgages in the UK are over 25-year period. But most lenders will let you vary the term. Look at what your repayments would be if you repay over 20years or 30 years. This is also a useful tool if you are thinking of paying off your mortgage early. You can see how much interest that you would save by doing so.
If you are considering a buy to let mortgage, find a special buy to let mortgage calculator. This will take into account the rental income from the property and help you arrive at a figure that will show you whether you can afford your proposed mortgage deal.
Remember that using a UK mortgage payment calculator is just a tool. You should always refer to the figures that are produced by your lender or broker in the Key Facts Illustration (KFI) document.