Published On: Tue, Aug 25th, 2020

Mortgage UK: This calculator could help you understand rates and payments on your deal | Personal Finance | Finance

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Mortgage arrangements, of course, differ from person to person, depending on their home of choice and the amount they need to repay. A mortgage is usually required for anyone to buy property in the UK, and must be repaid over a set amount of time, as it is secured against the value of a home. Usually, the standard amount of time for repayment is 25 years, although this can vary depending on a person’s circumstances and how they wish to meet the payments.

“Mortgage lenders will look at these figures very closely to work out how much they’ll offer you.”

Users will then be asked to enter the size of their deposit to see what they can afford.

But it is worth noting other costs may need to be taken into consideration such as Stamp Duty and legal fees. 

The tool is quick and easy to use, and the website states it should take five minutes to complete in full.

Britons can also calculate their monthly mortgage payment, which provides a rough guide as to how much they will be required to pay.

However, the exact amount is dependent on the type of mortgage a person takes out and, of course, the lender they opt to go with.

Several mortgage providers also offer mortgage affordability calculators.

Familiar banks and building societies such as Barclays, Halifax, Nationwide and HSBC also offer mortgage calculators.

And some providers even allow Britons to see how they could accelerate their payments to potentially become mortgage free at an earlier date.

For those who are looking for ways to lower their monthly mortgage payment, though, the Money Advice Service states there are three important considerations to bear in mind.

The first is choosing the right type of mortgage and considering getting an adviser.

A mortgage advisor could provide additional help to suit a person’s individual circumstances, and thus could assist in an arrangement.

Secondly, people should consider increasing their deposit. This is because the greater the deposit, the less a homeowner will be required to pay back through a mortgage agreement. 

And finally, those looking to reduce monthly payments should check their eligibility for an affordable housing scheme.

Schemes for existing home owners and first time buyers alike could provide the valuable financial assistance necessary to ease the burden of high mortgage payments. 

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