What Is a Mortgage Calculator?

A mortgage calculator is tool that lets you calculate your monthly mortgage payments based on the amount you're borrowing, the interest and the length of the mortgage. It's an estimate, and you'll need to speak to a mortgage broker for a final quote.

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The Money Savings Advice Mortgage calculator is an estimate based on the information you have provided.  A full mortgage quote can be provided by one of our hand-picked mortgage brokers who will also help with a full affordability assessment.

With our mortgage calculator, you can see just how much your monthly payments will be. All you need to do is enter the amount of money that you’re looking to borrow and the deposit that you have available to pay. Then, enter the period that your chosen mortgage would last for, and the annual interest rate (just enter the value, don’t add a percentage sign). Hit calculate, and we’ll work out your monthly repayment.

You can then experiment to see how that changes if you were to choose a slightly more expensive property, or if you could put down a little extra cash as your deposit. Remember though that these are estimates. It’ll depend on the exact mortgage you choose on whether this is your repayment and also whether that amount stays consistent, or if it varies.

If you want to know exactly how much a mortgage would cost, you’ll need to speak to one of our trusted mortgage advisers. They’ll be able to show you a range of different mortgage products and tell you exactly how much they’ll cost both monthly and over the entire period of your loan.

Types of Mortgage

The ‘default’ mortgage rate is the Standard Variable Rate (SVR). This is a variable interest rate, which means it will rise and fall in line with the financial markets. This means your monthly repayments will rise and fall too. However, it is usually a higher rate than other options, and it is rarely the best deal. The SVR is called the default rate because it’s what most providers will move you onto when your initial ‘deal’ period ends.

Standard Variable Rate Mortgage

The main alternative to the SVR is a fixed-rate mortgage. This will keep the rate consistent and is best for people who would prefer to budget with a normal mortgage amount in mind every month. It might not be the lowest possible rate, but it also protects you if the interest rates were to rise across the market.

Tracker Mortgages

Tracker mortgages work similarly to the SVR, but they’re usually more competitive. This has its positives but also its drawbacks as it can be riskier. Depending on the way the housing markets and interest rates go, you could save huge sums every month – but you could also pay a lot more. Only opt for a tracker mortgage if you are able to comfortably afford more than is forecast, in case of the markets changing and leaving you struggling each month.

If the idea of a tracker mortgage with a changing interest rate intrigues you, but you’re risk-averse, consider a mortgage with a cap and/or a collar. A capped rate mortgage will rise and fall, but you’ll have a maximum upper limit. So while your average payments may be slightly higher, it means that if the interest rate climbs quickly, you will hit a limit and only make repayments up to that level.

Conversely, they usually come with a collar too, which is a lower limit – so if the interest rates plummeted you wouldn’t take full advantage.

Discounted Rate Mortgages

Discounted Rate mortgages could be fixed or tracker mortgages, but they’re usually fixed. They are, as per their name, simply mortgages with a discounted initial rate. So at the start of your mortgage, you may enjoy a low rate, but within a year or two, that might rise and usually to a level higher than a flat fixed rate would’ve been from the start.

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Flexible Mortgages

Flexible mortgages give you a lot more control over your money. You’re able to make overpayments; when you have spare money available, to help shorten your loan duration and cut down on some of the interest, you would be due to pay. On the flip side, you can sometimes withdraw money that you’ve paid in too (to a limit), so they’re perfect if your financial situation tends to fluctuate monthly too.

Also if you’re looking for the lowest monthly repayments, consider an interest-only mortgage. They aren’t usually recommended to most customers, as they’ll leave you still owing a large amount of debt when the initial mortgage deal ends, but if you have circumstances that require you to keep payments to a minimum or you’re planning to use the property as a rental opportunity, then you might decide that an interest-only mortgage suits you.

If your head is spinning from all the options, don’t worry. We’re here to make it easier for you to find the perfect mortgage for you. And remember to use the calculator to get an estimate of how much you would repay each month using the different interest rates you can find online.

Need More Help?

Still, feel like you need more help? We’ve got more detailed guides on every type of mortgage available, so you can learn more about when they’re suitable, or why they might not be right for you, and exactly how they work. We have a wealth of guides on interest-only mortgages as well, if you want to keep your repayments to an absolute minimum or if you feel you’ve been mis-sod an interest-only mortgage.

Then, when you’re ready to apply for a mortgage, we can help you by passing you to one of our trusted partners. We only work with reliable mortgage advisers who will look after you properly. They’ll evaluate your finances, the property or properties you’re interest in, and your life goals and make a variety of recommendations on the best mortgages for you. Once you’ve found one, they can act as a broker to set everything up, making the process seamless.

How Can Money Savings Advice Help You With A Mortgage?

Here at Money Savings Advice, we have partnered with some of the UK’s leading mortgage brokers. They have already helped thousands of people get the best mortgage deal and they can do the same for you.

Choosing an independent adviser means they won’t recommend a mortgage unless they are sure it is in your best interests. Their advice is also regulated by the FCA, which gives you an additional layer of protection.

If you would like to speak to one of these brokers who can provide you with a ‘whole market quote’ then click on the below and answer the very simple questions.