GETTING on the property ladder is a top priority for many Brits, but how do you know what mortgage you can get and how much the repayments will be?
The good news is there’s lots of mortgage calculators out there that will do the hard work for you, estimating how much you can get from the bank, the monthly repayments and the interest.
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In April, the government launched a mortgage guarantee scheme to help first-time buyers with small deposits to buy their own home.
Lenders pulled almost all of these types of mortgage deals, when the coronavirus crisis hit last year, but now the government is backing them.
NatWest and its sister bank RBS have signed up to the scheme, and they’ll offer the 5% deposit deals to both first-time buyers and existing homeowners.
We’ve wrapped up the best mortgage calculators, what data you have to give and how to find the best home loan:
Calculators to see how much you can borrow
The most common sort of mortgage calculators tell you how much you can expect to borrow from the bank.
These are usually independent calculators, so what they tell you is just an estimate and the actual amount you can borrow will depend on the individual lender and your circumstances.
This simple calculator only needs to know how many people are buying the house, your income, and any guaranteed bonuses.
It tells you how much you should easily get and the maximum you’re likely to be offered depending on your circumstances.
This calculate also only asks how many people are applying and what their income’s are.
It gives you an estimate of what you can afford and also gives you a ballpark figure to show what your monthly repayments might be.
- Barclay’s quick affordability calculator – try it now
This calculator asks for the number of applicants, the income, any regular spending, the reason you want a mortgage and the size of your deposit.
It tells you how much you can get and gives you an overall rough property budget.
This calculator asks for your income and any guaranteed bonuses or overtime.
It tells you the upper range of mortgage that you could expect to be loaned, as well as how much you’d typically have to repay each month.
It also highlights that your credit score will make a difference and that lenders will also ask about your outgoings and debts.
This calculator asks for salaries and also has an option to add other guaranteed income. It also needs to know how much deposit you have.
It tells you what kind of loan you can expect and the total amount you can afford to spend on a house.
The Trussle calculator asks for your annual salary, partner’s salary (if applicable) and deposit.
It also has an option box to add in your regular monthly outgoings, so it will give you a figure that might be slightly closer to what the banks will actually lend.
It tells you how much you can borrow, your Loan-to-value rate and the total house price you could afford.
How do you find the best mortgage deals?
WE explain how to ensure you get the best deal on your mortgage or remortgage:
Websites such as MoneySuperMarket and Moneyfacts have mortgage sections so you can compare costs. All the banks and building societies will have their offers available on their sites too.
If you’re getting confused by all the deals on the market, it might be worth you speaking to a mortgage broker, which will help find the best mortgage for you.
A broker will typically cost between £300 and £400 but could help you save thousands over the course of your mortgage.
You’ll also have to decide if you want a fixed-deal where the interest you’re charged is the same for the length of the deal or a variable mortgage, where the amount you pay can change depending on the Bank of England Base Rate.
Remember, that you’ll have to pass the lender’s strict eligibility criteria too, which will include affordability checks, and looking at your credit file.
You may also need to provide documents such as utility bills, proof of benefits, your last three month’s payslips, passports and bank statement.
Bank and building society full mortgage calculators
Most banks and building societies have more thorough calculators which tell you how much they are prepared to lend you.
These usually ask for a lot more details including outgoings, credit cards and loans, how many children you have, whether you are self-employed, and if you get any bonuses and overtime.
Nationwide even asks for your date of birth and sex to make its calculations.
These calculators will give you a much better idea of what you can afford, but it’s based on the lending criteria of the individual provider which can vary significantly.
Most don’t involve credit checks, and won’t keep hold of your personal details, so it’s worth trying a couple just to see how your specific circumstances change what you can get.
Free ones include Halifax, Barclay’s, Nationwide, Santander, and NatWest.
Mortgage repayment calculators
Once you’ve used an affordability calculator to see what you can borrow, you can then use a mortgage repayment one which shows how much your monthly payments will be.
Typically, you need to know the size of the mortgage, the mortgage term (how many years it will last) and the interest rate.
If you don’t know the interest rates, the calculators typically put in a figure for you, but this is higher than the best deals on the market.
It helps you see what repayments will look like, but bear in mind you might be able to get a better rate by shopping around.
If you don’t know your mortgage term most the calculators will put in 25 years which is the usual mortgage rate.
There’s lots of these calculators out there, and they tend to be quite similar.
We recommend:
- Money Saving Expert – allows you to add mortgage fees in and shows how your debt will decrease over time.
- Money Advice Service – really simple and only asks for the deposit and house price.
- Compare the Market – the repayment calculator is linked to the affordability calculator so it fills in the information for you.
Providers also usually offer repayment calculators based on their specific lending criteria, this can be very useful when you’ve narrowed your selection down to a couple of lenders.
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home.
Help to Buy Isa – It’s a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there’s a maximum limit of £3,000 which is paid to your solicitor when you move. These accounts have now closed to new applicants but those who already hold one have until November 2029 to use it.
Help to Buy equity loan – The Government will lend you up to 20% of the home’s value – or 40% in London – after you’ve put down a 5% deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa – This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25% on top.
Shared ownership – Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25% to 75% of the property but you’re restricted to specific ones.
Mortgage guarantee scheme – The scheme opens to new 95% mortgages from April 19 2021. Applicants can buy their first home with a 5% deposit, it’s eligible for homes up to £600,000.
Other handy calculators
As well as the affordability and repayment calculators, there are several others than could be useful when buying a house or once you’ve got a mortgage.
For instance, online tools can help you calculate stamp duty, work out how much you will save by overpaying and even let you compare different mortgage offers.
Here’s some of the most useful ones we could find.
Money Saving Expert calculators
MoneySuperMarket calculators
- Overpayment calculator – let’s you look at one off overpayments, recurring ones and even a combination.
- Base rate calculator – shows how much your mortgage payments will be affected when the Bank of England base rate changes.
Which? calculators
Trussle calculators
- Remortgage Calculator – work out if you could save on your mortgage repayments by switching to a new mortgage deal.
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