3

Feb 12

Important things you should know before you buy a home

By Mortgage Calculator on February 3, 2012

Whether you are a first time buyer or buying a second home as an investment, there are a number of things you should know before you commit to buying a property.

The first is obviously financial and this is can you afford it? An online mortgage calculator can give you a good idea of how much you can borrow, for how long and whether you can afford the repayments, and in the case of a buy to let mortgage calculator will give you a good idea of how much to set you rent to make repayments easy.

After this there are questions you should ask the estate agent about the property to make sure it is the right financial investment for you.

Ask how long the property has been on the market for. If it is a very long time you should ask the estate agent why that is. This will help you to identify potential problems with the house or area. If it is just simple maintenance or aesthetic reasons these can be fixed but if it is a severe problem with the area or neighbourhood you might be better looking for a property in another area.

Find out how much interest there is in the property to help you decide how quickly to put in an offer. But do your research as well as estate agents are not renowned for their honesty when trying to make a sale. Like with if a property has sat on the market for years, a lot of viewings with no real interest may indicate a problem with the property that once you have put down your money it will be difficult to get around.

Financially, try to find out what the utilities and council tax is like for the property and area. All of this will need to be paid up within the first few weeks of you moving into the property (or just owning it) so you will need to add it to your calculations. With utilities, if the prices are very high you may be able to switch to a cheaper provider before you move in to take advantage of lower rates and save yourself some money. If these costs are still too expensive you should seriously think about whether you can afford the property. if you cannot afford your mortgage repayments you may still lose the house.

Posted in news, online mortgage calculator |

3

Feb 12

Finding the benefits of a fixed rate mortgage with a free mortgage calculator

By Mortgage Calculator on

With so many different types of mortgage to choose from, it can be impossible to know which to go for. The good news is that remortgaging is always and option, switching to a better deal as you find it, however it is always a good idea to choose the best deal possible for the forseeable future if only to save you time and hassle when going through the already stressful mortgage process.

A fixed rate mortgage may  be the answer for you if you value stability in your financial workings. With a fixed rate mortgage, the interest you pay stays at the same rate for the term of the deal. This will not be for the duration of the mortgage (usually around 25 years) but you can choose deals which last for up to 5 years providing you with stability for a long time to come. At the end of the fixed rate it is always possible to move your mortgage to another money saving deal, although you may have to pay a transfer fee. With the economy currently being quite unstable and fears over the base rate rising, having a fixed rate mortgage can give you one area of security as you know exactly what your monthly repayments will look like for the future and allows you to budget in the right amount each month to make these repayments.

You may end up paying more than those on a tracker mortgage (a mortgage with which the amount of interest fluctuates with the base rate. These mortgages tend to charge a cheaper premium than fixed rate mortgages initially, but you run the risk of the mortgage going up past what you can afford). However, although this can be offset by the peace of mind you are likely to get knowing that whatever happens to the base rate your mortgage will remain the same.

To make your decision easier, try using a free mortgage calculator online to find out what your monthly repayments look likely to be with the fixed rate and repayment term you have chosen and work out if you can afford that first. You can find a good uk mortgage calculator on most comparison sites and can even compare with, for example, an offset mortgage calculator to see if you are making the right choice for your situation.

Posted in news, uk mortgage calculator |

2

Feb 12

Using an offset mortgage calculator to beat the credit crunch on loans

By Mortgage Calculator on February 2, 2012

After the credit crunch, lenders tightened their rules and restrictions to lending on large loans including mortgages, making it more difficult for people looking to buy property to obtain a loan in the first place. There are, however, ways to get around these stricter rules to ensure you are able to buy when you want to, and get the loan amount you hoped for.

Firstly, using an offset mortgage calculator can show you how much you can save on interest and time on the repayment should you opt for an offset mortgage. If you have a large amount of savings, this may encourage lenders to give you a mortgage on an offset basis as it proves you already have a decent amount of capital to protect the loan and make repayments. Offset mortgages also save you on interest and give you a more flexible mortgage option. Choose the best mortgage calculator online to help you make your decision (most comparison sites will have a free mortgage calculator you could use to make your initial decisions on how much to borrow).

Another way to get around tighter rules is to choose a flexible repayment option which allows you to make overpayments when you have a lot of money coming in and smaller repayments when times are tight. This gives you so much more financial freedom that lenders are likely to be more satisfied that you are not going to default on the loan or miss repayments should you get into trouble. As long as you make a larger payment as soon as your financial situation improves you shouldn’t bear the brunt of higher interest for too long either.

The safest way to get a mortgage with lenders cutting back on mortgages is to have a hefty deposit. If you have some money saved and would like to have a bigger deposit there is no harm in saving for a couple of years and then going back to mortgage lenders with this increased deposit to see what kind of deal they can offer you then. the more money you can put down on a property the more quickly you are likely to be able to pay off the loan so it really does save you time (and money) in the long run. Plus, it makes lenders feel more secure and is bound to get you a better deal which you

Posted in best mortgage calculator, news |

2

Feb 12

Cashing in on the holiday market with a buy to let mortgage calculator

By Mortgage Calculator on

As an investment, buy to let properties are one of the strongest. Not only can you pay off the mortgage with rent taken from your tenants, but in the long run you end up with a second home that you can choose to do what you want with. You could sell it once the mortgage is paid off to get a cash lump sum which could be used for further investment or just to keep you financially stable, or you can continue to rent out the property to make yourself some extra monthly income.

With this in mind, a good investment decision could be to buy a holiday home, either here or abroad to rent out to tenants and also keep for yourself for breaks away.

Make sure, firstly, that you can afford a second property by using a buy to let mortgage calculator to see exactly how much you can borrow and what your repayment term is likely to be. Most lenders will only advance a mortgage if you can afford it and it is always helpful to be a step ahead and know what your options are. A repayment mortgage calculator means you will know in advance what your monthly payments will be so you can decide how likely it is that you will be able to afford the property during quiet months or if you cannot find tenants right away. You can find a free mortgage calculator online and have the option of comparing against an offset mortgage calculator to make sure you are making the right choice for your personal situation and how much you have in savings.

If you are ready to go ahead and have the money to do so then your mortgage will be based on your estimated rental income and here is where your choice of property will pay off. If you choose to rent in the UK you should look for a good location in a town or city which has a large tourist culture. Holiday lets tend to be booked by families so you should look for a home with a number of bedrooms and in an ideal location close to transport links and places of interest. Take into consideration that you will probably need to use a holiday letting agent and that some of your rent will be taken up by their fees – and it is worthwhile putting this into your calculations.

If you are looking for a holiday home abroad choose a country or area you know well to help you to choose a property, and try to find a mortgage lender that has branches in both this country and the country you will be buying in. It would help to look at a lender who can guide you through the process as it is likely to be a little more complicated buying abroad than in this country.

Posted in news |

1

Feb 12

How to get a great deal on your first mortgage with a free mortgage calculator and comparison websites

By Mortgage Calculator on February 1, 2012

As a first time buyer, you could be eligible for many more offers and deals than those already on the property ladder, as mortgage lenders want to tempt new buyers to use their services. This is not just because it brings in a substantial term of business (most mortgages last around 25 years) but also because it will encourage first time buyers to come back and use the lender again should they have a pleasant experience.

For this reason, you should try to take advantage of as many of the discounts and deals available to you and do your research before you commit to a certain lender or bank. Make sure you know what kind of mortgage you are looking for by first using a free mortgage calculator on a comparison website to work out how much you are looking to borrow, and for how long. Using a mortgage calculator puts you in the position of power as you then have all the information you need without the lender telling you what you want. The best mortgage calculator will be one which offers plenty of options, such as an offset mortgage calculator as well as a standard one.

Once you know what you’re looking for you can research the types of deals you are looking for. Many lenders will offer cheaper rates for first time buyers and this will make your mortgage cheaper in the long run. Generally the rate will only be cheap for a certain amount of time, but you are always able to switch to a better deal when this ends.

You could also look at cashback deals which give you a lump cash sum upon completion of the mortgage. This means you will have money to hand exactly when you need it, for putting your new home together and paying moving fees etc.

Look at deals which offer you more flexibility as a safer bet for the future, as an allowance to overpay or underpay depending on your financial situation might just be the most helpful deal you can get. With more flexibility you get more control over your mortgage, meaning whatever your financial situation (and over 25 years it is bound to fluctuate at least a little!) you will always be safe to cover the appropriate amount on your mortgage repayments.

Posted in mortgage calculator, news |

1

Feb 12

Work out your interest using an interest only mortgage calculator and a little research!

By Mortgage Calculator on

When applying for a mortgage you might be intrigued by interest only mortgages as their low monthly repayment rates seem to beat most other types of mortgage hands down. Looking at an interest only mortgage calculator as opposed to any other UK mortgage calculator it shows a huge disparity in what you are required to pay back on a monthly basis. But interest only mortgages (even if you have a savings plan in place to pay off the full loan once the mortgage matures) can still cost you more in the long run than a standard repayment mortgage and this is all because of how the interest in calculated.

Firstly, with an interest only mortgage the interest is calculated on the full sum of the loan, rather than a rate which is always reducing. This means that over a 25 year period you will always pay the same amount of interest and your monthly payments will not change. With a full repayment mortgage you will pay more at first, but this amount will reduce as time goes on because the interest calculated will be a smaller amount as the capital investment sum is reduced.

When your interest is calculated can also make a difference as to how much you end up paying. If your interest is calculated daily, each payment you make immediately takes a chunk off of your debt and thus an amount off of your interest. When interest is calculated daily you will find that you end up paying a lot less in the long run.

A monthly calculation means that you have to be careful when you make any payments (in particular overpayments) as this may not show up in your interest calculation until much later in the month. Once it does show up, though, it will be taken off of your debt just like interest which is calculated daily, so it is a simple matter of deciding when to make your payments according to your lenders calculation deadline.

If your interest is calculated yearly you may find yourself giving far more money to the lender than anticipated. Any overpayment still raises interest whether it is being calculated or not and your lender will benefit from the extra interest until it is noted at the end of the year. This money should be going towards paying off your debt and lowering your repayments so really, if you find that your lender calculates interest this way, you should go with another deal.

Posted in news, uk mortgage calculator |

31

Jan 12

Why buying a home with a small deposit is possible again

By Mortgage Calculator on January 31, 2012

When the credit crunch kicked in, a number of banks and other lenders had to find ways to cut down on their lending straight away, meaning rules and restrictions tightened up dramatically and first time home buyers suddenly found it that much harder to find a mortgage broker who was willing to lend at all. Having a large deposit helped lenders to feel more comfortable and made getting a mortgage almost completely the domain of the rich or those with a heft amount of savings.
The economy is beginning to recover now, meaning lenders are starting to create new deals all the time which allow people with less substantial savings and/or income to apply for a mortgage – in some cases even lending 100% mortgages to first time buyers.
A 100% mortgage is when the lender fronts the entire cost of the property to the borrower, allowing the borrower to pay back the mortgage just as they would if they had a deposit of their own. In many cases, lenders will still only allow this if the buyer has a guarantor who will put their own property up as an asset to secure the lender should anything go wrong. But this is still an option for first time buyers if a family member is willing (and trusting enough) to allow this. 90% mortgages are also becoming more popular with first time buyers and mortgage rates for these are at an all time low. This means now is the perfect time for those who have previously been put off by high rates or the need for large deposits to get their foot on the first rung of the property ladder.
If this has made you want to start looking in a mortgage, the first thing you will need to know is what your credit score looks like. You can apply for this from Experian or Equifax online and you should only attempt to apply for a mortgage if your credit record is clean – lenders will not lend out such a large amount to a customer with a bad credit record.
You should then choose the type of mortgage that will work best for your situation, using a uk mortgage calculator to find the best repayment plan for you. A repayment mortgage calculator can show you exactly how much you are looking to pay back monthly and for how long, and you can find a free mortgage calculator on most good comparison websites.

Posted in news, uk mortgage calculator |

31

Jan 12

Understanding the repayment mortgage calculator

By Mortgage Calculator on

There are many different options for repaying your mortgage and the very best for ensuring that you own your home outright at the end of the repayment terms is to take a full repayment mortgage. Using a repayment mortgage calculator you can see exactly how much you are able to borrow, how much you will be paying back every month, and for how long. But what do these costs really factor in and how does a repayment mortgage work?
Take a look at any good mortgage calculator UK and compare a repayment mortgage against a buy to let mortgage calculator or an interest only mortgage calculator and you will see a difference in the amounts you will be paying back and the length you will need your repayment term to be to pay off the full amount. Rates tend to be higher on buy to let mortgages, while repayments are much lower on interest only mortgages – although these do tend to cost you more in the long run as you will still need to pay off the full mortgage.
With a repayment mortgage, every payment you make back into your mortgage reduces not only the interest but also the capital investment sum, meaning the interest decreases over time and you pay off the full mortgage. This means that by the end of the repayment term (generally 25 years but it can be as long or short as you like – within reason), you have paid off the full amount owed to the lender and own your house outright.
You will find that for the first few years you will only be paying off the interest accrued on the mortgage which can be frustrating – as you are paying more than an interest only mortgage and still not paying off the full loan – but in the end you will find that you have paid off the loan in full, making the initial frustration worthwhile.
Monthly payments will start to reduce after the first few years, because as soon as you start making a dent in the actual loan your interest will reduce as well, making the amount owed less and less. This is not the case with interest only mortgages as the interest in calculated on the full loan sum, instead of being calculated anew each time you pay off some of the loan. For this reason a repayment mortgage does work out cheaper for you – if you can swallow the higher monthly payments at first.

Posted in mortgage calculator uk, news |

30

Jan 12

Use your savings and an offset mortgage calculator to get the best out of your first mortgage

By Mortgage Calculator on January 30, 2012

As a first time buyer you will want to take your time in making the decision to get a mortgage, researching carefully to make sure you choose the best deal and especially the right home to put your money into. While you are researching your ideal property and mortgage deal you could always be saving to ensure that you have a hefty deposit and some extra cash to keep in savings. If you look at an offset mortgage calculator you’ll see how much quicker you might be able to pay off your mortgage if you have a lot of savings as well as what you can save on interest if you make regular overpayments.

It makes sense to have as much money in savings as possible anyway, but an offset mortgage can make the process simpler and cheaper. Just compare the repayment options with those shown on a buy to let mortgage calculator or an interest only mortgage calculator (you can find a free mortgage calculator on most comparison websites and if you do an Internet search should come up with some good online options) to see what savings could do to protect you over your repayment term.

Another reason to have a lot of savings is because mortgage brokers are tightening their restrictions on mortgage lending and a lot of first time buyers are finding it difficult to get their mortgage. Lenders have always been more lenient on those with a larger deposit to put down and more accessible cash as they are a safer bet so this will help you to secure a mortgage.

When saving you should choose an account which will make you the best returns and make your saving experience that much easier. Choosing an ISA may be your best option as you do not need to pay income tax on interest earned by these accounts. If you do not want to go with an ISA and are worried about taking the money back out of your savings, you should look at a fixed rate bond which you can put money into but not take money back out of before the fixed term is over. This will ensure that when the bond matures you will have a large stash of cash to use for your first home.

Set your target to be something ambitious but reasonable and keep a check on what you are paying in and how close you are to reaching your target. If you have to underpay one month make up f or it by overpaying the following month and so on.

Posted in news |

30

Jan 12

Use your buy to let mortgage calculator to rent out your home in record time

By Mortgage Calculator on

There are plenty of expenses that you will need to take into account when buying a home, whether you intend to live in it or rent it out. But when using your buy to let mortgage calculator to work out exactly how much you can afford to borrow and how much you will make back in rent, you should first take into account how much you may be paying out to get the property off the market and rented in record time.

Use an online mortgage calculator to first work out how much you have and how much you want to borrow and then out of the repayments add another couple of hundred pounds onto each month for the first couple of months to see how much you will actually the paying out as you get the house set up and on the market. Try not to take any notice of  an interest only mortgage calculator which seems to offer a cheaper monthly repayment as this will just confuse you in the long run.

Once you have bought your property there are a few things you can do to make sure your property is visible on the market and attractive to potential tenants and all of these will cost some money.

Firstly you want your property to be attractive and in some way unique. The best way to do this is a decorate and furnish the home in a way which is classic, stylish, but has a stand out feature which will draw peoples eye. This could be an incredibly landscaped garden, dramatic living room area, balcony or fully equipped kitchen, but you will need to spend money to make this aspect stand out and attractive.

After the house is perfect you need to advertise it and letting agents are the best way to do this. You will have to pay a fee but the letting agent will automatically put you in contact with plenty of potential tenants who have the right price range and are your perfect target audience.

You can also advertise your property yourself. Target work noticeboards, public access areas and the Internet. You will need to take some flattering but realistic photos of your property to catch people’s interest and use language that really sells the property. Emphasise the good points and downplay the bad points. Make sure your advertising is everywhere locally and still available to people from out of town – as they may be looking to move into your area and want to skip letting agencies.

Posted in news, online mortgage calculator |

Older Entries