Online Mortgage Calculators UK

From LoveToKnow Mortgage

United Kingdom residents are no different from their counterparts in North America in that they use online mortgage calculators UK to get information about financing or refinancing a home.

Use a calculator to find out how much your mortage will cost.

Types of Mortgages Available in the UK

Consumers in the UK can choose from variable and fixed rate mortgages.

Variable Rate Mortgages

Home buyers in the UK can choose from a few different types of variable rate mortgages, including:

Standard Variable Rate (SVR)
Discount Rate
Tracker Rate
Capped Rate

A Standard Variable Rate Mortgage carries an interest rate that changes when the lender's interest standard rate changes.

You may be able to get a Discount Rate mortgage from your lender, which means that you get a lower interest rate than the one usually offered to the lender's clients. The discounted period will run for a set period of time, and then the interest rate will revert to the standard rate the lender offers for variable rate mortgages.

Another option for home buyers in the UK is to get a Tracker Rate Mortgage. With this option, your mortgage will be linked to the Bank of England base rate, as opposed the standard rate the lender charges for variable rate mortgages. If you choose this option, you will be charged a certain percentage (for example 0.25 or 0.5 percent) above the Bank of England rate. This arrangement may be put in place for a specified time only or for the entire time the mortgage is running.

Another option when it comes to variable rate mortgages in the UK is the Capped Rate Mortgage. With this version, the interest rate will not go above a set rate, no matter how high interest rates rise during the term of the mortgage.

Fixed Rate Mortgage

Choosing a Fixed Rate Mortgage means that the interest rate will not fluctuate during the selected term, which can range from 1-25 years. With this option, home buyers may find it easier to budget since their mortgage payments will remain the same during that term. Once the term is up, the mortgage will convert into a Standard Variable Rate Mortgage.

Types of Online Mortgage Calculators UK

There are a number of different online mortgage calculators UK; each one provides different information to buyers:

Online Mortgage Calculator
Affordability Calculator
Mortgage Payment Calculator
Stamp Duty Calculator
Rate Change Calculator

Use an Online Mortgage Calculator to find out how much you would be able to borrow for a mortgage based on your income. The figure is determined by multiplying income by a set amount.

The Affordability Calculator works by allowing users to input all of their monthly expenses and calculating how much money they will have left over to use for mortgage payments.

The next step in determining how much of a mortgage a UK home buyer can afford is to use a Mortgage Payment Calculator. This online tool is used to figure out how much the payments would be for an interest-only mortgage and a principal-and-interest mortgage.

A Stamp Duty Calculator is used to add up the cost of this tax charged on the purchase of homes costing more than GBP 125,000 (US $249,000). For example, a home costing GBP 150,000 (US $299,000), the Stamp Duty will be GBP 1,500 (USD $2,361).

Use a Rate Change Calculator to determine how an increase or decrease in interest rates will affect your monthly payments.