28

Jan 12

Use a repayment mortgage calculator to work out whether you should over pay on your mortgage

By Mortgage Calculator on January 28, 2012

When you have a little extra cash and are thinking of things to do with it, it seems to be the most sensible option to make an overpayment on your mortgage. Using a repayment mortgage calculator you will see exactly how much you are required to pay back each month and how this will affect the length of your loan. Making an overpayment seems to make sense as it takes off more of the money you owe on the loan, reducing your interest and making the repayment terms shorter. Looking at an offset mortgage calculator or a buy to let mortgage calculator will show you the difference in types of mortgage compared to a standard repayment plan. Offset mortagges are flexible and encourage you to make overpayments, whereas a lot of buy to let plans will charge you a fee for overpayment making the idea less attractive.

Before you decide to make an overpayment the first thing you need to check is whether your mortgage provider allows this on your current plan. If not you could end up paying penalty fees for overpayment which will make any overpayment a waste of time and money. You can also look into whether you are on a deal (or can move to a deal) where you can take back any money you overpay, just in case you think you can afford to make an overpayment but later down the line find out you need your money back. if you think this is likely you will not want to have to go through the stress of remortgaging just to get your money back.

If you overpay your lender may allow you to start taking repayment holidays when you need to up to the value of the overpayment, and in offset mortgages the money you can overpay or underpay is all yours anyway so you can add to it and take it away as often as you like – bearing in mind that it does affect the length of the mortgage repayment term and the interest on the loan.

If, using a free mortgage calculator, you decide that making an overpayment on your mortgage is not worth it, then there are other things you can do with the money that will still help you out financially. Any other debts you might have could be paid off, you could start a high return savings account and so on. These things will still help you out in the future even if you can’t repay your mortgage faster.

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28

Jan 12

Using an offset mortgage calculator to help secure your child’s financial future

By Mortgage Calculator on

It is standard practice for parents to help their adult children out in the early years of their adulthood. From letting them live at home rent free while they start out in their career, to paying off debts for them should they get into financial difficulty, parents are paying out thousands of pounds yearly to keep their children afloat. Once their children grow up, they will have to do the same for their children and the circle continues, but should you as a parent go as far as to pay for your child’s first mortgage?

If your own finances are secure, you own you own home outright and have a hefty amount of savings you might want to think about buying a home for your child. However, there are many other ways you can help out which will still mean your child has to stand on their own feet but with a safety barrier should things go wrong.

If you stand as guarantor as part of a guarantor mortgage your child will be able to borrow a lot more than if they were applying for a mortgage on their own. It also gives some security to both the bank and your child as should they be unable to make a repayment on their mortgage you have essentially agreed to cover the expense until they are back on their feet. Some mortgages will also allow you to put some money in on a deposit to allow your child to get a much bigger property, or higher mortgage.

Another way to help out is to get involved in an offset mortgage with your child, offsetting your own savings against their mortgage to allow them to pay off the debt far more quickly. You can see just how much they will save from you sacrificing the interest on your savings by running the figures through an offset mortgage calculator. You can find a good mortgage calculator UK by looking on one of many comparison websites for a good deal, comparing the savings you can make on a free mortgage calculator and then instantly getting a list of brokers willing to lend under these circumstances.

Either way, offering to help out with your child’s mortgage is a big step to take and should be thought through and discussed with your child thoroughly. They will need to promise to keep up their end of the bargain just as you keep up yours but in the long run it can be a very helpful way of making sure your child is financially fixed up for the future – and will not have to make any more withdrawals from the bank of Mum and Dad!

Posted in mortgage calculator uk, news |

27

Jan 12

Is it worth buying a home with friends?

By Mortgage Calculator on January 27, 2012

Eventually, there will come a time when you are tired of renting and want to make a more secure investment such as buying a home. If, however, you do not have enough money on your own to buy a home and are not in a position to buy with a partner then ‘mates’ mortgages’ can seem to be the answer to your problems.
The idea behind mates’ mortgages is that you and a group of friends put your money together to put a deposit down on a property and then cover the monthly repayments together. You’ll generally have a larger amount to put down as a deposit working this way and so can afford a larger property which you can all live in just like if you were renting, but at the end of the mortgage repayment terms you will have paid off your part-ownership of the home and will have a secure investment on your hands.
If everything works out and you are happy to stay living with your friends for the entire mortgage repayment term then this is a great solution to the struggles associated with first time buying. However, the problem with buying a home with friends rather than a partner or on your own is that your personal circumstances are far more likely to change meaning you want to get out of the house or sell up sooner than the repayment term. If one of you wants to get married or have children, or should you want to go travelling, it can be very restrictive to be tied into a mortgage that none of you can get out of and this can cause far more stress than taking on a home on your own.
Buying on your own also stops there being any squabbles when it comes to making major decisions about the house as you are the owner and will have the final say on everything. If you are not sure you can afford a mortgage on your own take a look at a mortgage calculator on a comparison website to see what options there are out there. If you use an offset mortgage calculator or a buy to let mortgage calculator you may be able to find a deal that is not only affordable but you can imagine being able to stick to for the forseeable future.
It is only really worth buying a home with friends if you try to keep the repayment term down as well as talk in advance with your friends about what the rules are going to be and what will happen should someone want to get out of the mortgage early.

Posted in mortgage calculator, news |

27

Jan 12

The best reasons to use a buy to let mortgage calculator in 2012

By Mortgage Calculator on

If you are looking to buy a home to rent it out this year you may have picked one of the best times to do it! Not only has tenant demand risen significantly over the past year but lenders are beginning to relax the rules and restrictions on their mortgages. This is all topped off with the fact that house prices continue to fall which means you could find yourself making back the cost of your home in no time at all and should find paying back your mortgage a piece of cake!
Before you take out your mortgage, use a buy to let mortgage calculator first to see exactly how much you can borrow and what this means for your outgoings in the future. Once you have worked out your monthly repayment amount you can work out how much you need to set your rent as and what this will mean for the kind of tenant you want to market to. The best mortgage calculator you can find should be available on comparison websites, and these sites have the added positive of being able to show you a list of the best mortgage brokers for you under your repayment amounts so you can make the process as simple as possible.
It should, this year, be far easier to get a mortgage as banks are started to relax on lending again and if you have a regular income and are capable of paying back the monthly repayments with your wage you shouldn’t have any trouble getting a mortgage that suits you. Having a large chunk of savings will also help you out so try to save up in advance of applying for your mortgage. Take into account that it may take a few months to find tenants though, just in case the property is on the rental market a little longer than you anticipated.
Choose the type of tenants you are looking for and tailor your property to that kind of tenant. If you want families make sure your property is near plenty of schools and has a cosy and cared for feel to it. If you are looking to rent to young professionals, being near good transport links and having the ‘wow factor’ might be more important. This should get your property rented out far quicker.
With house prices falling and tenant interest rising, if your plan has always been to buy to let then there is no better time to invest in your property than 2012.

Posted in best mortgage calculator, news |

26

Jan 12

Why an interest only mortgage calculator can lead to financial difficulty

By Mortgage Calculator on January 26, 2012

In today’s difficult financial climate, it is more difficult than ever to get a loan, mortgage or other borrowing. People who have saved for years to get onto the property ladder are now struggling to be able to use their hard-saved money to get the home they have always wanted as banks are more nervous about lending.
However, those who already have a mortgage are also struggling as the economy dips, and this is leading to risky behaviour from families in debt and struggling with repayments. If you look at an interest only mortgage calculator you will see the vast difference between paying off a mortgage in full repayments and interest only. Interest only repayments can be up to £200 cheaper each month and this can look like a tempting offer for those struggling financially.
With the ability to switch your mortgage for a more cash-friendly alternative, many people see the opportunity to switch to an interest only repayment plan as the short term answer to their problems. However, once switched over, should the situation not remedy itself it can seem impossible to go back on this decision and this can lead to staying on this repayment plan for a lot longer than expected. The problem with this is that over time you will become so far behind on payments that another loan could be the only way to finally pay off the amount necessary to secure your home once the repayment terms are over.
With an interest only mortgage you are just paying off the interest accrued on the mortgage. This is calculated by how much is left on the mortgage and as you are not paying off the mortgage at all you do end up paying more in the long run as the interest never goes down, and at the end of the term you are still left with the mortgage to pay off.
Use a uk mortgage calculator to work out the best way to solve your problem without having to resort to this risky measure. It may be worth extending the length of your loan to reduce payments, or switching to a completely different type of mortgage altogether.
Look at a buy to let mortgage calculator or an offset mortgage calculator to see what you can save or how these different types of mortgage may benefit your situation before choosing interest only to save you money.

Posted in mortgage calculator uk, news |

26

Jan 12

Why using a buy to let mortgage calculator isn’t the last step in letting a property safely

By Mortgage Calculator on

Once you have decided, having used a buy to let mortgage calculator, that letting out your property while you pay off the mortgage is the best way for you to secure your financial future, there are many steps to take to ensure  both yourself and the tenant have an easy and stress free time together.
First of all, make sure you are making the right decision by checking the best mortgage calculator you can find to see if there are any cheaper options. If you have decided that you definitely want to rent out your property you need to first make sure that it is safe and secure for your tenants (any changes or repairs will need to be paid for by you as the landlord), and you will want to tailor the property to the kind of tenant you are looking for.
You will not want the house sat on the market for a long period of time so make it as attractive as possible to potential tenants and make sure it is well advertised.
Once you have a tenant that is interested in renting from you, there are a number of steps to take to make sure you are protected financially. Firstly, make sure you get good references for the tenant. These can come from an ex landlord, or if this is the first property they have rented you should be thorough and get references from a credit agency (to ensure they have a good credit rating), and an employer or personal reference to reassure you that the tenant is in secure employment and also that they will respect your property and leave it in the same condition they found it. This can save you a lot of money as, should your tenant not be respectful of the property, or be unable to pay rent, you can find yourself struggling with your mortgage payments as you try to fix the property or wait for the money to come in.
Try to visit the property on a semi-regular basis to check that it is being looked after and that there aren’t any problems that need dealing with. Do not enter the property without the tenant’s permission and always call in advance as you need to understand that while the tenant is paying rent the home is theirs and not yours. Checking in regularly will also mean that any problems that might turn into long term and expensive issues (drainage problems, heating concerns etc) you can deal with quickly. This will also lead to a happier tenant who is more likely to stay for a long time.

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25

Jan 12

Boost your savings then use an offset mortgage calculator to make your mortgage easier to manage

By Mortgage Calculator on January 25, 2012

If you already have a good amount of savings you may feel it is time to start looking into buying a property. Having a large deposit will make you a more attractive customer for mortgage brokers and will also give you more security when it comes to making repayments. However, you might still want to boost your savings a little before using an offset mortgage calculator to see how much you could save on mortgage repayments. An offset mortgage can also help you to pay off your mortgage quicker, meaning your property is yours outright in a short space of time.
Compare an offset mortgage with a buy to let mortgage calculator or an interest only mortgage calculator to see what a difference savings can make to your repayments (you can find a free mortgage calculator on most comparison websites or by doing a simple Internet search).
To boost your savings there are a few options you can take to ensure that you do not go without or struggle while you are building up your savings account. Firstly, make sure you have a good savings account which offers a good rate of interest on your savings. The more money you have in the account the more interest you will accrue over time. Do your research to look for the best accounts and if you already have a savings account speak to your bank to talk about switching to another bank to see if they will match the deal offered to you by another company.
Look into tax-free allowances and make sure you use all the ones available to you to make sure you are not overpaying on tax when it comes to your savings. You can find details about tax-free allowances online and you can use comparison websites to see which are the best accounts offering the highest savings on tax.
Finally, try to set up a manageable direct debit which goes straight into your savings as soon as your regular wage comes in. Often people spend money on luxuries that they neither need nor really want just because the money is in their account and if this money has already been moved into your savings you will find that you don’t really miss it and still don’t feel hard done by without the extra money.
Remember that with an offset mortgage, the more money in your savings the cheaper your mortgage will be in the long run, making a little extra investment at the beginning pay off in the future.

Posted in news |

25

Jan 12

Quick fixes if your repayment mortgage calculator doesn’t give you a manageable monthly amount

By Mortgage Calculator on

Before you even look into buying a property you should use a repayment mortgage calculator to see how much you can borrow, how long your repayment terms will be and how much you will be looking at paying back each month. Using a mortgage calculator UK site will give you some of the best deals out there and whether you use a buy to let mortgage calculator or interest only mortgage calculator to work out which kind of mortgage to go for, you should be able to find something that works with your monthly income.
It is possible, though, that during the repayment term you will have a period where you cannot afford the amount you are due to pay monthly and there are a number of options out there for you should this become the case.
Firstly, you can always remortgage your property, finding a more competitive deal with another lender, based on their standard variable rate. You should take into account that a good introductory deal can sway you to switching but it will not last the entire period of the mortgage, meaning you may have to remortgage again. You will also be liable for all of the fees and arrangements necessary to remortgage so should be prepared to swallow that cost.
You can also extend your mortgage term, which will bring down the monthly cost of repayments depending on how long you extend the term by. In this case you should opt for a flexible mortgage which allows you to overpay if you want to. This will allow you to bring down the amount of time you are paying back the mortgage once you get back on your feet or if you have any extra cash. Bear in mind that extending the mortgage repayment term will bring down your monthly repayment but will also cost you more in the long run, so it is worth negotiating with your lender to make sure you will be able to shorten the term again if necessary.
You could also switch to an interest only mortgage which will bring down your monthly repayment drastically. Again, this option is best considered as a temporary option until you get back on your feet and you should make sure you will be able to switch back, as interest only mortgages are exactly what they seem like – leaving you just paying off the interest and not the actual loan which will need to be paid off once the mortgage matures.

Posted in mortgage calculator uk, news |

24

Jan 12

Using a buy to let mortgage calculator is just the first step in letting a property

By Mortgage Calculator on January 24, 2012

If you have decided to become a landlord in order the gain more financial security, as well as pay off the mortgage on a home in the most secure way possible – with a tenant paying off part or all of your monthly mortgage repayments meaning the house is essentially paying for itself – using a buy to let mortgage calculator should be your first step. This will show you exactly how much you will be looking at paying each month and thus how much you will be looking to charge for rent, taking into account what you will do if the property is empty for a couple of months, or if there are any maintenance problems which you will be required to pay for.
There will be a few other things you’ll need to look into before you buy your property. First of all make sure you have decided on the right kind of mortgage by comparing different mortgage deals with an online mortgage calculator. Often these will include an interest only mortgage calculator so you can see both repayment amounts at the same time.
You should check the rental potential for the area and property you are looking to buy. Going to a lettings company will be the best way to find out, and if you go to more than one you should be able to get a good idea of exactly how rentable your property is. Lettings agencies can also let you know the costs involved with renting a property out, and these should be something you take into account before you put any money down whatsoever – to make sure that you can afford all the costs involved just to get your property on the market.
You will need to sign up to the Tenancy Deposit Scheme, which protects both you and the tenant when they move out. The deposit basically covers any damage to the property and this can be filed on the scheme so that everyone gets the right amount of money back at the end of the tenancy.
Before your tenant moves in, both you and your agent should file a full inventory to make sure everything that should be there is still there at the end of the tenancy. Anything that has been broken or lost will then come out of the deposit.
Once you have gone through all of these steps you should be protected both as a homeowner and a landlord, but you should make sure you have taken all of this into account before you become a landlord in the first place.

Posted in news, online mortgage calculator |

24

Jan 12

Be aware of the facts when using an interest only mortgage calculator

By Mortgage Calculator on

When looking into taking out a mortgage many people will be attracted to the low repayment amounts evident in an interest only mortgage calculator. Although taking out an interest only mortgage can save you quite a bit of money on monthly repayments, when compared to the amounts you’ll see on a standard mortgage calculator, you will still need to have a repayment plan worked out in advance for paying back the capital investment as, when your mortgage matures, this amount will still be fully repayable. If you don’t have a plan in place or any way of getting hold of enough to pay off your full mortgage you will end up with a massive debt at the end of your repayment term.
With this in mind, should you still decide to go with an interest only mortgage you should be aware that lenders are much stricter with lending on this basis and it could actually end up costing you more money in the long run.
Most lenders will charge a higher rate for an interest only mortgage, and the interest you’ll pay on an amount that does not get any smaller is going to be consistently high, whereas the interest will decrease with a repayment mortgage as the amount owed gets lower.
Interest only mortgages are also capped at £500,000 meaning you will need to have the money to cover the rest of the house price should you want a property which is more expensive. A common way for borrowers to repay their mortgage debt was to sell the house at the end of the repayments terms and hope the house price had risen so that they would make a profit as well as pay off their mortgage. However, most lenders will not accept the sale of the property to repay the debt.
The best way to make sure you will be able to repay your mortgage at the end of the repayment term is to set up a savings or investment plan with your bank that will accrue enough money over the repayment term to pay for the cost of the home once the mortgage matures.
If this is not possible, you are better looking at another type of mortgage, or waiting until your financial position improves before you decide to buy. Having a larger deposit and more money to spend on repayments will mean you can get a far better deal on your mortgage anyway.

Posted in mortgage calculator, news |

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