How much can you borrow?

A MORTGAGE is essential for most homebuyers going up the property ladder, but figuring out how much it will cost can be tricky.

The good news is that there are plenty of mortgage calculators out there that will do the work for you, estimating how much you can borrow, monthly repayments, and interest.

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There are plenty of calculators online that can make it very easy to figure out what mortgage you can afford.Credit: Getty

Getting a mortgage can be tough, as you need to put down a deposit and pass a lender’s affordability and income stress tests.

Some lenders may offer mortgages that only require a 5% deposit under the mortgage guarantee program launched last year to help first-time buyers.

Others may require deposits of 10% to 40% depending on the rate you are looking for and how much you can afford to borrow.

Having an idea of ​​how much you can borrow should help you decide what you need to save for a deposit and what type of property you can afford.

Many credit applications, such as mortgages, can reduce your credit problem. It is therefore good to have an idea of ​​how much you can borrow before going through the process.

There are plenty of calculators online that allow you to do this without having to go through a bank or building society.

We’ve summarized the best mortgage calculators, what data you need to provide, and how to find the best home loan:

Calculators to see how much you can borrow

The most common type of mortgage calculator tells you how much you can expect to borrow from the bank.

These are usually independent calculators, so what they tell you is only an estimate and the actual amount you can borrow will depend on the individual lender and your situation.

MoneySuperMarket.comTry it now

This simple calculator only needs to know how many people are buying the house, your earnings, and guaranteed bonuses.

It tells you how much you should easily get and the maximum you’re likely to be offered based on your situation.

Which? Try it now

This calculator also only asks how many people are applying and what their income is.

It gives you an estimate of what you can afford and also gives you a ballpark figure to show what your monthly repayments could be.

Barclay’s Quick Accessibility CalculatorTry it now

This calculator asks for the number of applicants, income, regular expenses, why you want a mortgage, and your deposit amount.

It tells you how much you can get and gives you an approximate overall real estate budget.

Money saving expertTry it now

This calculator asks for your income and any guaranteed bonuses or overtime.

It tells you the upper range of the mortgage you could expect to be on loan, as well as how much you would typically have to pay back each month.

He also points out that your credit score will make a difference and that lenders will also ask you about your expenses and debts.

Compare the market Try it now

This calculator asks for salaries and also has an option to add other guaranteed earnings. He also needs to know how much deposit you have.

It tells you the type of loan you can expect and the total amount you can afford to spend on a home.

Trussle Try it now

The Trussle Calculator asks for your annual salary, your partner’s salary (if any) and your down payment.

It also has a radio button to add your regular monthly expenses, 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 ratio, and the total house price you can afford.

How to find the best mortgage offers?

WE tell you how to make sure you get the best deal for your mortgage or mortgage:

Websites such as MoneySuperMarket and Moneyfacts have sections on mortgages so you can compare costs. All banks and building societies will also have their offers available on their sites.

If you’re confused by all the offers on the market, it might be worth talking to a mortgage broker, who will help you find the best mortgage for you.

A broker will usually cost between £300 and £400 but could help you save thousands of dollars over the course of your mortgage.

You will also need to decide whether you want a fixed agreement where the interest you are charged is the same for the duration of the agreement or a variable mortgage, where the amount you pay can change depending on the Bank’s base rate. from England. .

Don’t forget that you’ll also need to meet the lender’s strict eligibility criteria, which will include financial capability checks and a review of your credit report.

You may also need to provide documents such as utility bills, proof of benefits, your payslips for the last three months, passports and a bank statement.

Complete mortgage calculators for banks and building societies

Most banks and building societies have more comprehensive calculators that tell you how much they are willing to lend you.

These usually ask for a lot more details, including expenses, credit cards and loans, how many kids you have, if you’re self-employed, and if you receive bonuses and overtime.

Nationwide even asks for your date of birth and gender to do its calculations.

These calculators will give you a much better idea of ​​what you can afford, but they’re based on each provider’s lending criteria, which can vary widely.

Most don’t involve credit checks and don’t store your personal information, so it’s worth trying a few just to see how your specific situation changes what you can get.

The free ones include Halifax, Barclay’s, At national scale, Santanderand NatWest.

Mortgage repayment calculators

Once you’ve used an affordability calculator to see what you can borrow, you can then use a mortgage repayment calculator that shows your monthly payment amount.

Generally, you need to know the amount of the mortgage, the term of the mortgage (how many years it will last), and the interest rate.

If you don’t know the interest rates, calculators will usually put a figure for you, but this one is higher than the best deals on the market.

This helps you see what refunds will look like, but keep in mind that you may be able to get a better rate by shopping around.

If you don’t know the term of your mortgage, most calculators will put 25 years, which is the usual mortgage rate.

There are a lot of these calculators out there, and they tend to be quite similar.

We recommend:

  • Money saving expert – lets you add mortgage fees and shows how your debt will decrease over time.
  • Financial advisory service – really simple and only asks for the deposit and the price of the house.
  • Compare the market – the reimbursement calculator is linked to the affordability calculator so that it fills in the information for you.

Providers also usually offer repayment calculators based on their specific loan criteria, which can be very helpful when you’ve narrowed your selection down to a few lenders.

What help is there for first-time buyers?

CLIMBING the homeownership ladder can seem like a daunting task, but there are programs to help first-time buyers get their own home.

Isa for life – This government scheme gives anyone aged 18-39 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% more.

Shared ownership – Co-ownership with a housing company allows you to buy part of the property and pay rent on the remaining amount. You can buy between 25% and 75% of the property, but you are limited to specific properties.

Mortgage guarantee system – The scheme opened to new mortgages at 95% from 19 April 2021. Applicants can buy their first home with a 5% down payment, it is eligible for homes up to £600,000.

Other Handy Calculators

In addition to affordability and repayment calculators, there are several others that might be useful when buying a home or once you’ve secured a mortgage.

For example, online tools can help you calculate stamp duty, figure out how much you’ll save by overpaying, and even compare different mortgage offers.

Here are some of the most useful we could find.

Money Saving Expert Calculators

MoneySuperMarket Calculators

Which? calculators

Trussle Calculators

  • mortgage calculator – find out if you could save on your mortgage payments by taking out a new mortgage.
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