Some lenders may be willing to chuck in free valuations when remortgaging. If you now own a bigger chunk of your own home, due to rising house prices, you may face a wider choice of lower interest loans.Īlternatively, you might want to release extra cash for home improvements or switch from an interest-only loan to a repayment mortgage. If you already have a mortgage, then switching to a new deal, known as “remortgaging” can bring several benefits. If you want help finding your way through the mortgage maze, you can always use a suitably qualified mortgage broker.įind out more about the different types of mortgages. If you are self-employed or freelance, for example, the best mortgage may depend on how many years you can provide accounts, as different lenders have different requirements. The best deal may also depend on your personal circumstances and reasons for borrowing. These include tracker loans, standard variable rate loans and discounted rates. There are different versions of variable rate mortgages. This provides the peace of mind from predictable payments This means that no advice is given or implied and you are solely responsible for deciding whether the product is suitable for your needs. Product information is provided on a non-advised basis. Try the free mortgage comparison tool below to find the best deal for you: The best mortgage deal for you may not be the one with the lowest interest rate, if it comes with chunky upfront fees.ĭepending on your loan amount and length of the deal, you might even save money by taking out a loan at a slightly higher rate, but with lower up front fees. Use our mortgage calculator to help you find the best deal Interest-only loans are more flexible and tax efficient for landlords, with the option of selling the property when they wish to clear the loan. Nowadays, most homeowners take out capital repayment mortgages, but buy-to-let property investors may still use interest-only mortgages. But borrowers must clear the whole of the original loan when their mortgage ends. Monthly payments for an interest-only loan are therefore lower than for a repayment mortgage. With an interest-only loan, the calculation is simpler, as each month you only pay interest, while the original amount borrowed remains untouched. To calculate monthly mortgage repayments, you, therefore, need to know the mortgage balance, the interest rate and time left for the mortgage to run. With a repayment mortgage, each month you pay off not just the interest owing on your loan, but also part of the “capital”. The calculation for mortgage repayments depends on the type of loan: whether a capital repayment mortgage or an interest-only mortgage. Want to use the repayment calculator for a £100,000 mortgage instead? Just tweak your answers to compare different scenarios. However, you could choose a slightly higher interest rate fixed at 5.14% and slightly higher repayments at £1,335.43 a month. You would also need to pay £1,034 in mortgage fees. This is based on a deal with an interest rate of 4.8%. Our mortgage comparison tool shows that the lowest initial monthly repayments on a £200,000 (£200K) mortgage would be £1,297.91 each month. House value: £300,000 How much mortgage would I pay?
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