Our mortgage calculator (also called a mortgage repayment calculator) shows you how big a mortgage you can afford based on your financial means, and lets you know what the monthly payment will be on your home if you decide to buy. Read on to see how our mortgage calculator works.
How to use our mortgage calculator
To calculate the cost of mortgaging your home, follow these steps:
- Enter in the price of the property.
- Enter in the amount you plan to put down as a deposit.
- Enter in how many years you want the term of your mortgage to last.
- Enter in the interest rate you expect to pay for your mortgage loan.
- Click calculate to see the cost of your monthly payment.
How the mortgage calculator works
Our mortgage calculator combines numerous financial inputs to tell you instantly what you should expect to pay every month for your home. By taking into account the length of the loan, the size of your deposit, and the interest accrued over time, this calculator quickly displays what you can expect in the way of monthly payments and shows you what you’ll realistically be able to afford in terms of a mortgage.
Why should I use it?
When buying a home it’s important to create a sound and feasible budget so you’ll know how to allocate your money every month. The cost of your home is often the biggest monthly payment that a person will have to make, so calculating your monthly mortgage payments down to the last pound will help you set the rest of your monthly budget accordingly.
There’s a reason the term “house poor” has become so popular: sinking too much of your money into your home can result in all kinds of financial stress, from mounting credit card debt to failing to have a big enough rainy day fund to cover unexpected expenses. By budgeting prudently with our calculator, you’ll be able to balance a mortgage with the rest of your needs and wants, instead of having your entire life revolve around paying for more home than you can comfortably afford.
What is a mortgage?
A mortgage is a loan you take out on your home, with the promise to repay the bank what you owe in exchange for them helping you with the upfront cost of the property. Mortgage repayments are the monthly payments you have to make after having taken out a mortgage to buy a property. Different lenders can charge significantly different rates for a mortgage, so it’s always a good idea to shop around for the best loan.