Mortgages

Mortgage Repayment calculators

We have a number of useful mortgage and remortgage calculators plus a stamp duty calculator to use to help you calculate what your new monthly mortgage payments will be and any additional costs like stamp duty that you may incur.

The key to managing your personal finances is setting a budget and sticking to it. To do so you need solid numbers to base your plans on, and a mortgage calculator can be an indispensable tool.

The mortgage is usually the largest debt a household will carry, and figuring out monthly payments you can afford without stretching out repayments over unnecessary years can save headaches and money. A mortgage calculator can give you a good idea of how suitable a certain mortgage is for your needs.

The variety of mortgages offered by UK lenders can make your head spin, fixed rate, capped, tracker, variable etc. Some look like deals at first, but after a quick numbers crunch reveal their hidden costs. Fixed rate, capped and other special rate mortgages are designed to entice borrowers with initial low rates, but once these expire the interest reverts to a usually significantly higher rate.

If you are considering such a mortgage, find an online mortgage calculator designed to figure your actual savings. Remember that while your fixed rate may be only 5%, the standard variable rate is more like 12%.

Not all mortgage calculators are created equal. Most of the ones you find online are provided by companies interested in selling you a mortgage product. As such, many don't provide enough information about the loan and will be made to steer you toward one of their products.

At its most basic, a mortgage calculator should have fields for you to enter the amount of your mortgage, the repayment period, the interest and your monthly payments. More advanced mortgage calculators, such as our Stamp Duty Tax calculator calculate these fees, an often forgotton cost of moving.

At best a mortgage calculator will give the borrower an estimate of a mortgage's costs. Be wary of fine print hidden fees and other less transparent costs lenders may sneak into a mortgage. Some lenders figure interest annually rather than monthly, which can lead to borrowers paying interest even after the mortgage is paid off. Insurance tie-ins, arrangement fees and early completion penalties are other costs that a mortgage calculator will certainly omit.

As with all computing tools, human error is also largely to blame for inaccuracies in mortgage calculation. When using more complex mortgage calculators, don't overestimate your salary or elide past credit problems. Any missing data or fudged figures on your part will mean an off-base mortgage calculation—credit and pay slip checks on the part of the lender will discover this information, and refused applications can themselves negatively effect your credit score. Again, a mortgage calculator is a convenient consumer tool, but all serious financial matters should be discussed in full with a finance professional.

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