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How To Use Our Mortgage Calculator
A mortgage is a special name for a very large loan used specifically to purchase a property. Mortgage lenders won’t usually lend you an amount equating to the full value of the property. They’ll lend you a fraction, typically 75% of the value. This is known as the loan-to-value (LTV) ratio. Up to 90% LTV mortgages are available but the interest rates are usually higher.
Step #1: Enter The Property Value
What’s the market price of the house? How much are you intending to pay for it?
Step #2: Set the deposit amount
How much is your deposit? Typically, this will be 25% of the property value.
Step #3: Set The Interest Rate
What’s the interest rate? Typically, you’ll just enter introductory rate during the fixed period at the beginning of the mortgage.
Step #4: Set The Amortization Period of the Morgage
How long will the mortgage last, in the event that you don’t remortgage? This will typically be 25-30 years.