How to use the Mortgage Calculator
To use the mortgage calculator simply type in the amount you would like to borrow, enter the number of years you would like to borrow the money for and an estimated annual pay rate (%). As a guide to the annual pay rate, at the time of writing the Bank of England base rate is 0.50%, typically mortgage lenders annual pay rates are with 0.5% of this rate both higher and lower although many subprime mortgage lender rates will be higher.
Amount of Lending – this is the amount you wish to borrow from the lender.
Repayment Term in Years – this is the number of years you wish to borrow for. With a repayment mortgage adjusting the number of years will affect your monthly mortgage payments. With an interest only mortgage your mortgage payments will not change based on a change in the repayment term.
Manually enter the Rate – Enter an estimated Annual Pay Rate (%) for the mortgage. Now click Submit for the Mortgage Calculator to calculate your monthly payments. Or click Clear to start again.
No of payments – This is the number of monthly payments due over the whole period of the loan (ie.1 – 40 years). Most lenders will have a minimum loan term and a maximum loan term.
Per Month Repayment – Your estimated monthly mortgage payments calculated on a repayment basis, this means that as well as paying the interest you are also paying back the capital. As long as all monthly mortgage payments are paid in full and on time this method ensures that your mortgage will be paid off within the specified term.
Per Month Interest Only – Your estimated monthly mortgage payments calculated on an interest only basis, this means that only the interest is being paid and none of the capital. If no capital payments are made in addition to the interest only payments at the end of the mortgage term the original amount borrowed will be due. Usually a borrower will set up an ISA or other savings product to repay the loan at the end of the term.
Now you have an indication of how much your mortgage will cost, to get an exact figure please click here for a free mortgage quote.