Mortgage comparison calculator
Compare over 1,000 mortgage deals in the UK with one simple
Online Mortgage Comparison & Calculator
Repayment mortgages for house buyers
We can help you find the best mortgage deal for you nay looking at thousands of mortgage deals in the UK right now.
We have partnered with a leading UK mortgage broker. They can help find the right mortgage for you with one simple email or phone call.
Our mortgage calculator can help you get a better idea of how much you can afford to borrow. Also, you can discover how much your mortgage will cost in monthly repayments.
You can change the terms of your mortgage required, the anticipated interest rate and the loan amount. They will then provide you with a monthly repayment amount. You can also get a monthly repayment on an interest-only mortgage.
Buy-to-Let mortgages – our buy-to-let mortgage calculator can give you an idea of whether you are likely to be accepted for a buy-to-let mortgage. A buy-to-let mortgage is heavily based on a stress test.
A stress test is used by all mortgage lenders when assessing the suitability of an applicant for a buy to let mortgage product. There are two main factors which are taken into account. The rental income of the property and the ability to repay the interest on the mortgage. This is also known as the Interest Core Ration (ICR).
What is a mortgage?
A mortgage is a loan that a bank or building society lends to you when you buy a property.
The amount of money (mortgage) you need to borrow will depend on the amount of money (deposit) you are putting down.
The amount of mortgage will be a percentage of the purchase price – which is called a loan-to-value or LTV.
So, if you want to buy a house for £100,000 and you have a deposit of £25,000 you will require a £75,000 mortgage. This works out as a 75% LTV.
How to get a mortgage?
You apply for a mortgage through a bank or building society.
When you apply for a mortgage you will be asked a series of questions about your finances.
Your lender will calculate what mortgage you will be able to afford.
There will also be a number of assessments to determine your financial status
If your mortgage application is accepted, you will be sent a mortgage offer.
How to get the best mortgage deal?
It is easy and quick to get the best mortgage deals available in the UK using a mortgage broker. Mortgage brokers have access to 1,000’s of current mortgage deals in the UK at any time. This means that mortgage companies have to offer you a great mortgage deal to compete for your custom.
Get in touch with us with a few details about yourself and the home you want to purchase. You can compare mortgage deals by the initial interest rate, overall APR and the fees included in the overall mortgage term.
Our mortgage advisors can help you get the best mortgage deals in the UK right now.
What size mortgage is affordable?
The size of mortgage you will be offered is based on your annual income and any financial commitments.
One of the key aspects for a mortgage provider, is whether you can afford to pay your mortgage back? There are a few things to consider here. Your annual salary and other incomings as well as your monthly outgoings. The mortgage provider will be looking at your net income to assess your affordability.
A mortgage lender will let also examine your credit history and how long you want to repay the loan (mortgage term).
Mortgage lenders are all different in their approaches to lending so the only way to find out, is to contact a mortgage broker.
What are mortgage rates?
Mortgage rates are the rate of interest charged on a mortgage. They are determined by the lender in most cases, and can be either fixed or variable.
Fixed rate mortgages remain the interest for the term of the mortgage. So, if you have a 5 year mortgage at 3%, then you are fixed at 3% for the rest of that 5 year mortgage term.
Variable mortgage rates fluctuate against a benchmark interest rate. So, your variable mortgage rate may be 3% but this may go up and down according to economic factors.
Some people looking for a mortgage like the stability and consistency of a fixed interest rate, others prefer the variable option.
Before you compare mortgage rates, you need to understand the different types and how they work.
What else do you need to consider when looking for a mortgage?
Mortgage term: many people have a 25-year mortgage term for their first mortgage. This is dependant upon your age to a large degree. If you have a longer mortgage term, your monthly repayments will be lower. It will however, take you longer to pay off your mortgage.
A shorter mortgage term means you will pay off your mortgage sooner.
For some people, the shortest term with the most affordable monthly repayment is the best option.
Early repayment option: most mortgage products have an early repayment charge (ERC). If you end the mortgage early, it’s important to think about how long you’re happy to be committed for.
It can cost thousands of pounds to end a mortgage early. The penalty is usually a percentage of the outstanding mortgage. So, if your mortgage if £100,000 and the ERC is 2%, you’ll have to pay £2,000.
It is worth looking at this as an option.
Repayment or interest-only mortgages: a mortgage can be a repayment or interest-only.
With a repayment mortgage, your monthly payments are calculated so you’re paying some of the capital off as well as the interest. You will have repaid the entire loan by the end of the term.
Monthly payments on an interest-only mortgage only cover the interest of the mortgage loan. This means you’ll have the original loan to pay in full at the end of the term.
The idea is that you have a repayment plan in place, such as ISA investments, so you’ve built up the lump sum you need by the time your mortgage ends.
Interest-only mortgages are harder to get. Mortgage lenders are concerned about the risk of home owners taking out interest-only mortgages with no repayment plan in place.
Lenders that offer this mortgage type tend to offer them to people with very large deposits.
What is a mortgage in principle?
A mortgage in principle is confirmation of how much a bank or building society would be prepared to lend you. It is not a mortgage offer. More an inductive figure of what they are willing to lend based on your information.
Having an offer in principle, shows a buyer that you are ready to buy when you make an offer.
A mortgage in principle is not a guarantee that a lender will let you borrow that amount of money. A lender can decide not to lend to you when you come to make a full mortgage application.
A full mortgage application looks at your full credit history and financial situation. This may change a mortgage offer at the more formal mortgage application.
What happens to your mortgage if you move house?
Most mortgages are portable. You can take your existing deal with you when you move.
It is unlikely that the mortgage on your new house will be exactly the same as that on your existing home.
Unless you’re buying a smaller house, you will probably need to borrow more. It is likely to be at a different rate than you’re paying on your existing mortgage.
It is simpler if the fixed or introductory term has ended and you’re out of the penalty period when you move.
Fixed rate mortgages
Fixed rate mortgages have an interest rate that stays the same for a set period. Fixed mortgages are normally anything from 2 to 10 years. Mortgage repayments are the same every month and are not affected by changes in interest rates. Most mortgage lenders will charge a penalty if you choose to leave the deal before the end of the fixed term.
Variable rate mortgages
Interest rates may change with a variable rate mortgage. This means repayments may go up as well as down.
The interest rate is affected by the Bank of England’s base rate. This is amended periodically by the Bank of England in the budget.
Standard variable rate (SVR) mortgages are slightly different. Every lender has an SVR that they can move when they like. This tends to roughly follow the Bank of England’s base rate. SVRs can be anything from two to five percentage points above the base rate. They can vary massively between lenders.
What are mortgage fees?
Most mortgages have arrangement fees. These can vary from a few hundred pounds to a couple of thousand pounds.
Set up costs can sometimes be made up of two fees. An increasing number of lenders charge a non-refundable booking fee. This is effectively a product reservation fee.
If your house purchase falls through and you don’t end up taking the mortgage deal, you won’t get this fee back.
Another type of fee is an arrangement fee which you pay on completion of the mortgage. You don’t pay this fee if you don’t take the mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.