How a mortgage calculator could help you

A mortgage is a big financial commitment, so it pays to get your sums right. And you don’t have to scribble your calculations on the back of an envelope any more: these days you can use a mortgage calculator.

A number of websites offer a mortgage calculator – and it’s a great way to test your homeloan budget.

You can use a mortgage calculator first of all to work out roughly how much you borrow. The actual sum will depend on a number of factors, including your credit score and the size of your deposit. Some lenders also impose their own criteria. But you can get an idea in seconds.

Most people nowadays opt for a repayment loan, rather than an interest-only mortgage, but a mortgage calculator will show you the figure for both types of loan, so you can compare.

If you can’t choose between a fixed rate or a tracker loan, don’t worry. The mortgage calculator can instantly work out the monthly repayments on a variety of mortgages. You just punch in your loan size and the different rates – and up pops the monthly figure.

A mortgage calculator is also an easy way to test your budget. You might be able to afford the monthly payments on a loan at 6%, but what if rates rise? The mortgage calculator can help you to work out how high you can go.

Of courses, if rates fall, you might be able to pay a bit extra on your mortgage each month and clear the loan early. Again, the mortgage calculator can quickly work out the effect of overpayments, both on the monthly amount and the total cost of the loan.

Many borrowers switch their mortgage every few years to take advantage of better deals. But what if your lender charges a penalty? Will it still work out cheaper to switch? A mortgage calculator can work out whether it’s better to switch or stick, so you know you are making the most of your mortgage.

A mortgage calculator can also add up how much it would cost to switch part of your loan to a repayment mortgage, if you are worried about an endowment shortfall.

And a mortgage calculator doesn’t just work for residential loans, it can also work for budding buy-to-let investors.

So, let the mortgage calculator do the sums, and you could be well on your way to getting a better mortgage.

Our available calculators:
How much can I borrow on a UK mortgage?
What will my monthly costs be?
Can I change my mortgage lender if I have early repayment charges?
Worried about your endowment not repaying your whole mortgage?
What will happen if mortgage interest rates rise or fall?
How much will I pay in stamp duty when I buy a property?
How much can I borrow on a buy to let mortgage?
How much rent do I need to charge to finance a buy to let mortgage?