13

Feb 12

Insurance costs to consider on top of your repayment mortgage calculator

By Mortgage Calculator on February 13, 2012

When you work out the costs of your mortgage using a repayment mortgage calculator, you will be looking for a monthly repayment amount that is affordable and fits within your budget. Aside from the extra costs when it comes to moving home and in the first few months of living in your new property (changing utilities suppliers, redecoration etc) you may also find there are other costs to put into your monthly budget – one of the most important being insurance plans.

Whether your are using a buy to let mortgage calculator or interest only mortgage calculator, you need to consider how much you can actually afford to pay out of your monthly wage, not only to pay off your mortgage, but also to protect the home you have just bought. Having spent so much money on your property it would be devastating to have something happen to it once you have moved in and insurance is the best way to cover your back in any eventuality.

Look into buildings insurance to cover you in case of any damage to your property. It doesn’t matter how careful you may be, accidents such a fire, flood or even subsidence can happen to destroy your home and in this case insurance will mean you have a pay out available to buy a new property or repair the one you already own. Most lenders will insist that you take out buildings insurance to protect both you and them but you do not have to take their suggested insurance plans and are free to look into one which fits your budget better.

Tie in contents cover with your insurance in case of burglary or any accidents within the home. The cost of replacing furniture and electrical goods can be huge and leave you in serious financial trouble if you need to replace it and contents insurance is often only a small monthly fee to protect against anything happening in the home. Contents insurance covers accidental damage as well as theft and over the time you plan to live in your new property at least a small amount of damage to the home is bound to occur so this kind of insurance can be invaluable.

Finally, mortgage payment protection insurance can be a lifesaver if you find yourself in financial difficulty during the repayment term should you lose your job or have to leave because of illness or an accident. This will protect your mortgage repayments and pay them off on an interest only basis for the time that you are having difficulty, meaning you are unlikely to miss payments and get into trouble with your lender.

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12

Feb 12

The hidden costs of buying a property

By Mortgage Calculator on February 12, 2012

Once you’ve decided to buy a property, the most important first step is to use a mortgage calculator UK to work out exactly how much you are going to need to borrow. Whether you use a buy to let mortgage calculator and base the amount on how much you feel you can charge for rent in order to make your repayments, or take a look at an interest only mortgage calculator and work out a savings plan, you will need to factor in a number of other costs before you work out what you can afford.

The cost of the property itself is only one factor in how much you will need to borrow as buying a property has a number of other costs which many buyers (especially first time buyers) won’t remember to factor into their budget.

Firstly, any property you buy will first need a full structural survey to ensure that the property is sound and whether you will need to make any improvements before you can move in. Some lenders will accept a survey from your own surveyor, but a number will want to run a valuation and survey of their own which will cost more. Double check with your lender what kind of survey they will accept before signing anything.

You will need to pay a solicitor for arranging the mortgage and there will be costs on top of this such as the Land Registry Fee. Ask your solicitor for a full break down of costs in advance so that you are not surprised when you get the full bill, and if anything catches your eye as possibly unnecessary question your solicitor about it.

Over the course of your repayment term you may want to switch to another mortgage deal, or feel the need to go on an interest only mortgage arrangement for a short time. These options could save you money or get you out of a difficult financial spot, but do look over your contract and ask your lender in advance whether you will have to pay any extra fees for leaving your mortgage plan. With some mortgages you will even have to pay a fee should you want to overpay and pay your mortgage off quicker than the term set out in the agreement.

If you think you might want to pay off your mortgage quicker, you could look at an offset or flexible mortgage which will allow you to do so without any extra costs being added.

Posted in mortgage calculator uk, news |

11

Feb 12

What makes buyers choose an interest only mortgage calculator over other options

By Mortgage Calculator on February 11, 2012

With interest only mortgages giving a more substantial risk to buyers, and making their chance of paying back their full loan once the mortgage repayment term is up, still thousands of buyers are choosing to go with an interest only mortgage calculator when first looking into setting up a mortgage. So why is the interest only option so attractive to buyers?

Firstly, when you use a standard uk  mortgage calculator you will often be given the standard monthly repayment amount as well as that for interest only. This is often the same on a buy to let mortgage calculator as well as an offset mortgage calculator and shows the buyer a far reduced monthly price for their mortgage. For those looking for cheaper options for getting a mortgage, these lower prices can be very attractive as, although you are expected to set up a repayment vehicle or savings plan to pay back the capital investment, you are at liberty to put as much or as little as you are able into these plans, meaning if you are struggling to afford your repayments you just pay a little less that month.

Often people that choose an interest only mortgage have the intention of switching to a repayment plan later on, once they have gotten through the costly first few months of moving home. However, many of these people will then get used to the amount they are paying on the interest only plan and then feel they are not able to afford to pay more in the future.

When interest only mortgages were most popular, buyers tended to have an endowment policy tied in with their mortgage, which was a type of investment vehicle promising to make enough to pay off their mortgage as well as provide a lump sum at the end of the term. However this was still a gamble as if their investments did not go as planned they could still end up with a huge debt and nothing to show for it.

Interest only mortgages are far less popular now, but can still work if you choose an investment vehicle and carefully monitor it, or have some other way of paying off the capital investment – such as an inheritance.

Generally, it is always worth trying to find a repayment plan which suits you but also pays off the full loan as well as the interest. If you are really struggling with payments it is possible to switch to interest only for a short time.

Posted in news, uk mortgage calculator |

10

Feb 12

Save money on your home using a free mortgage calculator

By Mortgage Calculator on February 10, 2012

Buying a property is an expensive business. Even if this is not your first home it may still be worthwhile finding out some cheaper alternatives to ensure that you do not blow your whole budget before moving day rolls around.

It will always help, first off, to use a free mortgage calculator to work out exactly how much you can borrow and what your repayments will be so you know what your budget it from the very start. Find a mortgage calculator on any comparison website to get a list of deals which are perfect for your situation at the same time – saving time and money in one easy swoop!

If you or your partner work in building or have at least good skills when it comes to DIY, you could always look into a house that is cheap to buy but needs some restoration. You may be able to save thousands of pounds on buying a home that needs some work – however if you need to bring in building professionals to do the work you won’t save any money at all so make sure you are honest with yourself about your skills.

Do your research on mortgage rates and the type of mortgage you are looking to pick up. With a fixed rate deal give you more security but cost more in the long run? Or would you be more secure starting off with a tracker mortgage and switching if the base rate rises? A couple of weeks of intense research may seem a bit excessive but in the long run it could save you thousands on your mortgage and leave you will some extra cash to spend on redecorating your new home!

Get some free independent advice about tax rebates or discounts for homeowners as many areas offer money back or a reduction in tax for those looking to buy a home. Even if you are not eligible you will at least find more out about the area you are moving in to and may also find out about discounts or exemptions for your personal situation. For example, there is currently a stamp duty holiday for first time buyers that you could benefit from and save yourself money without even trying!

Finally, once you have found your home make sure to get a full inspection and survey of the property in advance and don’t put any money down until you are certain that it is structurally sounds and a good investment. This will save you not only money, but a lot of stress in the future should the property turn out to have significant work that needs doing.

Posted in mortgage calculator, news |

9

Feb 12

Avoid getting into mortgage arrears with an interest only mortgage calculator

By Mortgage Calculator on February 9, 2012

There are a number of reasons that borrowers may struggle with their mortgage repayments at some point or another over their repayment term. Firstly, with mortgages being set out over a relatively long period of time it is inevitable that many homeowners will find their situation changes in that time. Whether it be losing a job or switching to a new one, taking a pay cut or starting a family. Over an average of 25 years it is inevitable that things will happen to change your financial situation and this may affect your ability to pay your mortgage repayment for a month or two.

Getting into mortgage arrears is dangerous because firstly any missed payments will need to be paid at some point. So if you miss one month you might not be in too much trouble with your lender but they will then expect you to pay back the month you missed. If your financial problems persist and you haven’t paid back the months you missed you could end up in severe difficulty right up to having your home repossessed by the bank to pay back the missed payments.

Also, even if you manage to recover before it gets to this point, and missed payments will be noted on your credit history and may affect your ability to borrow in future.

So what can you do if you do find that you are having difficulty making repayments? Firstly, use an interest only mortgage calculator to see if switching for a brief time to an interest only mortgage could help you. You can find an online mortgage calculator on most comparison websites and they will show you what kind of repayments you would be making by switching.

Switching to interest only will make your repayments lower for a period of time and, although you will need to pay back the capital eventually, it gives you far more time to get back on your feet before you need to worry about it.

You other options are to switch your mortgage to another lender altogether and choose one which offers a better deal, or choose to switch to a mortgage that offers introductory discounts which will last long enough to get you back on your feet.

You could also look into extending your mortgage term to make repayments lower. The standard mortgage is 25 years but you can take a mortgage up to 40 years if you want to cut down on your repayments. The amount of interest you will pay in the long run will be higher but your repayment amount will come down, and you can always switch back later on.

Posted in news, online mortgage calculator |

7

Feb 12

Maximise your mortgage repayments from a buy to let mortgage calculator

By Mortgage Calculator on February 7, 2012

When looking at buy to let properties you might find a really good deal using a buy to let mortgage calculator, but this will not help you in the long run if you can’t find tenants quickly to help out with your mortgage repayments. First, make sure you are getting the best deal by finding the best mortgage calculator you can (there are plenty on comparison websites online) and compare with an interest only mortgage calculator to see if you might be able to make better repayments by paying back your interest each month and then having a separate savings plan to pay back the capital investment once the mortgage matures. This may help you out in the short term while you are looking for tenants.

The easiest way to make sure your property is as attractive to tenants as possible is to borrow enough to make the house look good both inside and outside to tempt potential renters. Get in a good gardener or landscape architect to make the outside of your property look as attractive as possible. Make sure the front door is freshly painted and the garden area is neat and tidy. If the outside of the property is painted then refresh that before putting it on the rental market as well.

Inside the property a furnished home looks more attractive than an unfurnished one (and means you can make your rent a little higher). You do not need to go overboard with furnishing and often a sparsely decorated home will give tenants an idea of what the property will look like once they’ve added their own personal touches. A plant or some attractive artwork can make the home look brighter and more welcoming, and will look much nicer, especially in letting agents’ photos online or in their brochure.

On that note it is most helpful to put your property up with a letting agent. Although it can cost a little more in fees it generally will make your property move much faster as it will then be shown to plenty of potential tenants in a short space of time.

Try to improve the energy efficiency of your property to give your tenants a better deal – installing extra heating or insulation may cost more in the short term but can go a long way to making sure you get tenants quickly – but also that you keep them.

Posted in best mortgage calculator, news |

6

Feb 12

Working out how much you can borrow using a repayment mortgage calculator

By Mortgage Calculator on February 6, 2012

Before you even start looking at properties, the first thing you need to know when you are thinking about buying a home is how much you can borrow. A good way to work this out is to use a repayment mortgage calculator into which you will put how much you are thinking of borrowing and how long for – giving you a final total of how much your monthly repayments will be and allowing you to decide whether to change the loan amount or repayment term until the amount suits you. You can find a free mortgage calculator online and often sites will have more than one site to give you the option to compare mortgage types. Compare a standard mortgage calculator with an offset mortgage calculator to see if there are more benefits going one way or the other and so on.

When it comes to knowing how much you might want to borrow in the first place, it does depend on factors such as your credit history and whether you are making a single or joint mortgage application but the basic rule of thumb is that borrowers can expect to borrow around three to four times their annual salary (including any other income than just your monthly wage). Those with the best credit score can expect the highest levels of this, whilst people with bad credit or a low wage may want to look into different types of mortgage or buying with a friend or partner to get enough to buy the kind of home they are looking for.

Even if you have your dream home in mind and have managed to push your lender to lend you more than originally stated you really should think through the consequences of borrowing more as this is a long term financial commitment which, if you find later down the line you cannot pay it, could cause you significant financial difficulty and might even end in the lender claiming your home back from you.

Try to borrow modestly and make the most of a cheaper property. While property prices are still low the chance of your property being more expensive once your mortgage matures is high, and this is when you have the opportunity to trade up for a more expensive home. Paying off your mortgage on time and in full monthly will also give you a higher credit rating and the chance to borrow more the second time around.

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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 |

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