(PRWEB UK) 22 March 2012
For those looking to take out a mortgage, the first step before even looking into property prices will be to work out the financial aspect. Most people will know that they need a deposit of a certain percentage to take out a mortgage and this will give them a rough idea of how much they will be able to borrow, but the particulars of borrowing a mortgage still remain a mystery to many and this can lead to trouble down the line.
It is so important to get a mortgage that is affordable to pay each month, even if the mortgage interest rate on a loan increases after a certain period of time.
Often the difficulty comes in how to make the relevant calculations, a problem solved by the use a mortgage calculator and as of April 2012 the mortgage-calculator.co.uk website plans to launch a series of free online mortgage calculators to aid in the process of securing a mortgage.
These mortgage calculators allow users to enter how much they want to borrow (an amount that can easily be worked out by comparing the price of the property with how much of a deposit a person has) as well as the mortgage repayment term they are looking at. The user would then enter the interest rate and will be given an instant readout of what they can expect from a mortgage. Visiting comparison websites will give people a good idea of how much they might be expecting to pay in interest. If taking out a fixed rate mortgage the rates will be listed on the deals, whilst tracker mortgages stick to the Bank of England base rate (currently 0.5%) and SVR mortgages take into account the lender’s personal interest rate.
Once the user has entered this into the mortgage calculator the calculation received will be as accurate as if you asked the lender directly.
The calculations on the mortgage calculator will show borrowers how much they can expect to pay each month on a full repayment mortgage, on an interest only basis and then how much they can expect their monthly repayments to rise if the interest rate does.
This final calculation can be a very helpful way of working out which type of mortgage a user wants to go with, as the stability of a fixed rate mortgage may then prove more attractive than the comparably low rates offered by SVR and tracker mortgages.
Initial response from beta testers of the mortgage calculator is that these are the essential first step for anybody wishing to take out a mortgage, as they provide you with a helpful way of working out which types of mortgage an individual should be looking at and how much they can afford. Even better, as our mortgage calculators are free they can be used time and time again, saving users money for the other important elements of the property buying process!