The best tool to plan your financial future.
Do you want to save money by finding a new mortgage provider? Maybe you’re looking to remortgage your property to release some equity.
Finding out how much you could borrow will save you a lot of time and energy – because a mortgage application is a stressful process with a lot of ambiguity.
Believe Loans is a professional loans broker dedicated to helping our clients find a mortgage provider that meets their requirements.
Our mortgage calculator gives you an idea of what you can borrow and your monthly repayments.
Why use a mortgage calculator?
When choosing a new mortgage provider, it’s essential to know your monthly mortgage payments. As many providers set their own rates, you could potentially lose a lot of money or fall into a trap with poor interest rates.
Our mortgage calculator can help you get a better idea of your payments, so you can have peace of mind about your finances.
Determine your eligibility
Mortgages aren’t a one size fits all solution, and when you reportage your property, you naturally want to ensure you get the best possible deal. Many factors contribute to your eligibility, and our calculator helps you isolate them.
Show you how much you can afford
The size of your mortgage will significantly impact your monthly repayments, so it’s vital to get an idea of how much you can afford before you start looking for a property. Our calculator can give you an estimate of what your payments might be, based on the amount you want to borrow.
Provide different repayment options
There are many different ways to repay your mortgage, and the right option for you will depend on your individual circumstances. Our remortgage calculator shows you the various repayment options available, so you can decide which one is best for you.
Need some help? Our brokers are just a phone call away
If you’re looking for the best mortgage advice, our team of brokers are fully impartial and focus solely on finding a remortgage agreement that suits your needs. We partner with many providers and work with clients with bad credit or unique requirements.
Working with us means you can move from your existing mortgage to a new fixed-rate mortgage and enjoy a brighter financial future that gives you more opportunities.
Feel free to contact us if you’d like more information, or use the calculator and see how much you can save.
Frequently Asked Questions
Why choose Believe Loans over other mortgage calculators?
While many mortgage providers have calculators, using one from a loan broker gives you more flexibility. Each lender shows you a mortgage deal from their selection, which limits your choices – but we search from a whole database of mortgage lenders.
When you use our mortgage borrowing calculator, you can get a clear look at your options and make the best decision based on numerous lenders.
What are the benefits of remortgaging?
There are many benefits of remortgaging your property, but here are some of the most common:
Secure a Lower Interest Rate
The main benefit of moving to a new mortgage provider is the possible lower interest rates. Most people begin on fixed-rate mortgages, but when their fixed term ends, they have to pay more on the standard variable rate.
When you find a new mortgage provider, you can benefit from lower interest rates, potentially saving you hundreds each year.
Save on Monthly Payments
Lower interest rates mean lower monthly repayments, but you could extend the length of your mortgage too. Also, some people choose to move onto a repayment mortgage instead of interest only because they can begin to repay the mortgage and secure their future.
Use the Equity in Your Home
If you have built up equity in your home, you may be able to use it for other purposes by remortgaging. Equity is the portion of your home you own outright, and many people use it as collateral for a loan.
Some decide to make home improvements, while others pay off debt or even invest in other properties. Remortgaging allows you to do the things you want, but you’ll also have to pay back more money.
Get Cash Out
Another benefit of remortgaging is that you could get cash out. If you need money for any purpose, such as home repairs or medical bills, you may be able to get it by remortgaging your home and taking out a new loan for more than the balance of your current mortgage.
Remember that if you do this, you will owe more on your mortgage and have to make higher monthly payments.
Find a mortgage with better terms
Many mortgage providers have rules that ensure they get money through interest rates, so some block people from making early mortgage repayments. It can become a problem if you inherit some money or receive a windfall because the mortgage provider might charge huge fees.
Remortgaging your property means you can find a provider that is more flexible with your monthly payment plan, ensuring you can contribute more money – if and when you want to.
What are the different mortgage types?
There are a variety of mortgage options available to homebuyers, and it’s important to understand the difference between them before making a decision.
A fixed-rate mortgage has an interest rate that stays the same for the life of the loan, while a variable-rate mortgage has an interest rate that can fluctuate over time.
Discount mortgages and tracker mortgages are two types of variable-rate mortgages; a discount mortgage has an interest rate that is lower than the standard variable rate, while a tracker mortgage tracks the Bank of England base rate and can rise or fall along with it.
Homebuyers should consider their financial situation and needs before choosing a mortgage type.
Which factors will determine my eligibility for a mortgage deal?
Mortgage lenders must carry out certain eligibility checks before offering you a mortgage. The primary eligibility checks are an affordability assessment, a credit check, and a stress test. These checks ensure that you can afford the mortgage repayments and that you’re not already over-indebted.
The affordability assessment looks at your overall financial situation to see if you can afford the mortgage repayments. A prospective lender will analyse your income, expenses, and other debts to determine how you manage money.
They’ll also perform a credit check to look at other outstanding debts and see if there have ever been issues with making monthly payments on your credit cards and store cards.
The stress test calculates your repayments if interest rates rise in the future.
These eligibility checks help to protect both you and the lender. If you can’t afford the repayments, you could end up defaulting on the mortgage, damaging your credit rating and putting your home at risk.
By carrying out these checks, lenders can ensure that they only offer mortgages to people who can afford them.
What is the loan-to-value ratio, and why does it matter?
Loan to value is the amount of money you borrow as a percentage of your property’s value. It’s an essential factor to consider when remortgaging because it can affect the mortgage rates a lender will offer you.
The LTV is the amount of equity you own in the property and the amount you borrow from a mortgage.
A high loan-to-value usually means a higher interest rate because lenders perceive you as a higher-risk borrower. It also means you’ll have less equity in your property, which could make it harder to sell in the future or leave you with a bigger mortgage balance to pay off if prices fall.
However, a low loan-to-value can mean a lower interest rate and more equity in your property, giving you more financial security.
Most lenders prefer people to have an LTV of 80% or lower, but some specialist lenders will offer a mortgage to high-risk clients – with higher interest rates.
How does the mortgage process work?
When you remortgage your property, you’ll have to go through an application process. Working with Believe Loans makes everything much easier because we do all the heavy lifting.
Find out how much you can borrow
The first step is to use our mortgage calculator and analyse how much money you’ll be able to borrow. It’s an excellent way to decide whether remortgaging your property is the right move at this time – especially if you have poor credit or your property value has decreased.
Have a free consultation with our brokers
We offer a free consultation to all prospective clients, so you can understand how we work and what you can look forward to when choosing a mortgage provider through Believe Loans.
We search our database of lenders
With so many lenders available, we’re confident we’ll find the right one for you. From longer repayment terms to borrowing large amounts of money, specialist lenders offer unique packages for clients.
Once we find the best lenders for you, we’ll work with you to secure a great deal and determine which you’re most likely to get.
Property valuation and eligibility checks
All the different mortgages are subject to eligibility checks, as your lender will want to ensure you can afford the monthly payments.
Your lender will check your income and expenses, such as utility bills and debt repayments and evaluate whether your personal circumstances will impact your ability to commit to the mortgage.
They’ll also want to assess your property, as it might have decreased in value, and you’ll be responsible for the valuation fees.
Once the application goes through and you pay the arrangement fee, you’ll receive your new mortgage agreement and be able to use the extra money or enjoy better payment terms.
As mortgage brokers, we’ll charge an arrangement fee, but we add the amount onto your new mortgage instead of you having to pay anything outright.