Mortgage Calculator
Before committing to purchasing a property, you will have to calculate how much you are willing to spend. If you cannot buy the property outright, you will likely have to pay in instalments known as a mortgage. Mortgages are loans given by banks and lending societies and often take many years to pay back.
According to a survey carried out in 2016-2017, 14.4 million households in England owned their home outright or owned their home with a mortgage, making up a total of 63% of English households.
The Chesworths mortgage calculator can help you to calculate your mortgage repayments quickly and easily. All we ask is that you enter the property purchase price, your deposit, interest rate, and an estimate of the repayment period. This figure is a guide, and it is worth noting that the actual amount of your mortgage repayments could vary.
There are a few different types of mortgages available when purchasing a property. The two most common mortgages are fixed rate and variable rate. By opting for a fixed-rate mortgage, you will continue to pay the same amount each month. This means that inflation or fluctuation of interest rates won’t apply to you.
Usually, fixed mortgages are offered for around 2 to 5 years though some lenders can extend these periods for up to 10 years. To access fixed rates, you must know exactly how long you can commit to repaying your mortgage. If you are unable to pay your mortgage back in time or you pay it too early, you may be charged a penalty.
Fixed rates often have a higher rate of interest compared to variable rate mortgages. This is because you are opting for more financial security knowing that your monthly repayments won’t change in price for a set number of years.
On the other hand, variable rate mortgages range from Standard Variable Rate (SVR) to tracker and discount. Every financial lender will set a Standard Variable Rate which is a normal interest rate for each homeowner. These rates are often higher than other types of variable rate mortgages, but the benefit is that you will most likely not be charged a penalty if you wish to pay off your mortgage earlier than expected.
When you’re ready, we urge you to speak to one of our mortgage consultants. They can help break down mortgage fees, talk you through your mortgage options, and discuss how monthly repayments work.