A mortgage calculator is a type of online tool that you typically use for one of two purposes: determining monthly repayments or calculating your affordability.
On the Freedom Advice website, you can find standalone calculators for mortgage affordability and mortgage repayments.
Each mortgage calculator on our site functions differently, depending on the specific tool you’re using. However, you’ll find easy-to-follow instructions integrated within the calculators themselves. Each one requires only a few personal details to provide the figures you need.
In terms of our two main calculators, the mortgage affordability calculator takes your salary and multiplies it by the most common income multiple that mortgage lenders use to determine maximum borrowing: 4.5X.
It then displays results for each multiple, allowing you to compare how much you could potentially borrow across the market.
Our mortgage repayments calculator takes your loan amount, interest rate, and term length, and calculates your monthly payment based on these factors. By default, it returns results for a capital repayment mortgage.
The other calculators on our site work similarly, with any notable differences and specifics clearly explained within the tools themselves.
Mortgage calculators can be invaluable when you’re planning to apply for a mortgage, a remortgage, or any other type of finance covered by our calculators.
A mortgage affordability calculator gives you a rough idea of the maximum amount you could potentially borrow and the number of lenders available to choose from. For instance, if you need a mortgage worth more than five times your salary, you’ll know that your options may be limited to niche lenders accessible through a broker.
Knowing that your mortgage is affordable can also provide peace of mind and a clearer understanding of what you need when preparing your application.
Similarly, a mortgage repayments calculator offers a concrete idea of your budget after obtaining your mortgage and how that might vary depending on the interest rate and term length you choose. Some borrowers might also find it useful to compare interest-only and repayment agreements.
Mortgage calculators can only provide rough estimates of your mortgage repayments, affordability, and other variables.
For example, with mortgage repayments, you might be uncertain about the interest rate you’ll qualify for or the term length your lender will agree to. Likewise, there’s no guarantee that you’ll qualify for the income multiple you need during an affordability assessment.
While the figures returned by a mortgage calculator aren’t bespoke to your situation, they still hold value. Using one of our calculators is an excellent starting point on your journey, but we always recommend seeking professional advice after crunching your numbers.
The most effective approach to obtain fully-accurate mortgage calculations tailored to your specific needs is by reaching out to our knowledgeable mortgage team at Freedom Advice.
Our experts will not only provide you with personalized figures for your affordability and repayments but will also add context to these numbers by introducing you to the mortgage lender who is most suitably positioned to offer you the mortgage you require with the most favorable rate.