Mortgage lenders offer new and existing customers a wide variety of deals. However, you need to use a home mortgage calculator to determine how much you can afford to borrow. Applying for first mortgages is often a worrying time but, changing the principal and term of the loan, enables you to determine how much you can comfortably afford to borrow.
How to use a Nationwide mortgage calculator
Type of borrower
You will need to select whether you are a first-time buyer or getting a remortgage. If you are an existing customer, you will need to let them know whether you are moving, borrowing additional money or a current deal has come to an end. This will help the system to create a list of the most appropriate Nationwide cheap mortgage deals which are most suitable for your needs. Property value and mortgage
You will need to provide Nationwide with the value of your property. If an estate agent or surveyor has not valued your home, it is advisable to get a valuation. You are also required to decide how much you need to borrow and whether this is possible. Since the credit crisis, customers are not currently able to borrow more than 85% of their property's value. The lower the LTV, the wider the variety of deals you will be able to get. Suitable home mortgage loans
The property valuation, coupled with the size of the mortgage you require, will enable them to determine which Nationwide mortgages you are eligible to. This is based on the Loan-to-Value (LTV) figure. For example, if your property is worth £200,000 and you need to get a £100,000 remortgage, your LTV is 50%. You will be eligible for a wide variety of deals.
Tracker versus fixed-rate mortgages
Base rate tracker mortgages are most beneficial to a homeowner when it is anticipated that interest rates are low or about to fall. Conversely, if you think that rates are likely to go up, the best mortgage offers are likely to be fixed for a certain number of years. This ensures that you know how much you will have to pay the lender each month for a defined period of time. Fixed rate mortgages are by far the most popular choice of loan because they provide certainty for families who are trying to get by on a fixed income.