How to Calculate a Mortgage in the UK

Calculate a mortgage for a home.

Discover how you can get a head-start when entering the UK property market. Having an informed idea of how much you can afford to purchase a property, from the beginning, can save time and reduce frustration. Calculating a mortgage in the UK is similar to doing so in America, and it can be done simply with an online mortgage calculator. A reputable bank, building society or web comparison site can also provide this service for free, with accurate information regarding the interest rates currently available in the UK for mortgages.

Instructions

1. Find a UK mortgage calculator online by using a search engine, and open it. Two popular and easy-to-use mortgage calculator are provided by BBC and NatWest. There are many others that require a more comprehensive amount of personal financial information.

2. Enter the amount you wish to borrow for the purchase of the property, and select the interest rate and type available to you.

3. Enter the length of the term for repayment of the loan, for example, 25 years.

4. Submit the information, and view the calculated monthly payment. There may be two figures, depending on the type of mortgage: an interest-only monthly figure and an interest and capital repayment figure.

Tips & Warnings

• There may be more than one rate to choose from on a mortgage calculator, and rate types may include fixed, variable, tracker and capped offers.

• An online mortgage calculation is not a firm mortgage offer from any lender.

References

• BBC: Mortgage Calculator
• NatWest: How much can I borrow?
• Mortgage.co.uk: Mortgage Calculator