Applying for a mortgage is an exciting time and we love being involved in one of the most important buying decisions you’ll ever make. There’s a lot at stake and lots to consider when you’re looking for a mortgage, so we’ve always made sure that we’re ahead of the game and up-to-date on our knowledge of the ever-changing mortgage world.
As good as online mortgage calculators are (like the one above) they should only ever be used as a guide. They’re a helpful indicator and can answer some of the big questions for you, but a mortgage broker or advisor is really what you need when you get into the finer details.
What does a mortgage calculator take into account?
As you’ve seen above, a simple online calculator will take into account:
- The overall mortgage/borrowing you need.
- The loan term (how long you’ll take to pay it back).
- The interest rate will differ from mortgage to mortgage and can and does fluctuate on many products.
- Your monthly payments.
- The total repayment.
- And the overall interest you’ll pay.
What should you take into account when using a mortgage calculator?
Firstly, it’s just a tool and it doesn’t use real life or up-to-date market data. They’re nearly always just an indicator or guide. You should use them to give you an idea. You could well borrow more or find a better interest rate and your circumstances will always determine how much you can borrow, for how long, and from who.
It’s nothing personal
An online mortgage calculator doesn’t ask for your particular situation (self-employed, newly promoted, working on commission, starting out in business, bad credit history) so speaking to a mortgage advisor is highly recommended before you head to Google to pick up a deal off the internet.
What else are you paying for each month?
Don’t forget that you might be paying off car payments, credit cards, and personal loans as well as paying phone bills, council tax, utility bills, weekly shopping, and more.
All of this needs to be factored in when you’re looking at a mortgage because it will be considered by any lender and we’ll certainly ask you about your monthly outgoings
Your credit history
Good or bad, your credit history will play a big part in your mortgage application. That’s not to say that you can’t get a mortgage with a poor credit history; it’s just a different approach. We’ll work with you on that if you’re applying for a mortgage with some added challenges because of your past payments.
Overall, an online mortgage calculator will make certain assumptions about you and your circumstances – mainly that you have good credit and can afford to pay the repayments. The results you get are only as good as the data you put in!
Need detailed, bespoke and personal results? Speak to us now.
We’re a whole of market broker, so many of the deals we get for our clients aren’t on Google.
Book a call with us now and we’ll help you get the right mortgage for you and your home.