Interest only mortgage calculator UK

A mortgage calculator is easy to use and will help you determine how much you can borrow and how much your repayments will be. Most lenders will have mortgage calculators available online, which will allow you to compare different mortgage types and amounts to find the best deals. Using a mortgage calculator will give you a firm indication of the size of mortgage different lenders are willing to offer you. This means that you do not have to meet with lots of different banks and building societies to find the one that is right for you, giving you more time to start looking for your dream home!

How much will I be able to borrow?

Generally, the amount you can borrow is calculated by multiplying your annual salary by 3.25. If you are buying the house with another person, the lowest income is added to this. So, for example, if you earn £25,000 and your partner earns £20,000, you would be able to borrow up to £101,250 based on this calculation.

An alternative approach some lenders take to calculate the maximum loan on a joint mortgage is to multiply the joint income by 2.5. So in the above instance, the couple would be able to borrow £112,500, over ten thousand pounds more than was possible using the first method.

For an online calculator see:
http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

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