BBC Mortgage Calculator Review

You can use the BBC online mortgage calculator to review your mortgage repayments, potential mortgage overpayments and to calculate whether you could afford monthly repayments. For anyone looking to buy a home, especially first time buyers, ensuring your mortgage repayments are affordable and reasonable is essential; this tool allows you to calculate several different scenarios and decide the best financial option before you proceed with a mortgage.

How it works

The BBC mortgage calculator can review your monthly mortgage payments from a set of inputted variables. The calculator has three fields:

  • - Mortgage required (the overall value of the property/the value of your mortgage);
  • - Repayment period (the agreed period of repayment in years);
  • - Interest rate.

From these variables, the calculator will output:

  • - Your monthly repayments;
  • - Your monthly repayments by interest only (subtracting the actual mortgage repayments and only displaying the amount of interest you pay each month);
  • - Potential repayments if you mortgage interest rate was raised to 12%.

If you opt for another type of mortgage, such as an interest-only mortgage, or a mortgage linked to endowments, ISAs and pension saving policies, you will need to add the cost of monthly premiums to the interest figure.

You can access this particular mortgage calculator at BBC.co.uk/homes/property/mortgagecalculator.shtml.

Comprehensive Mortgage Calculator

If you have some experience in calculating mortgages already, or are confident in your ability to understanding mortgages and repayments, you can use a more comprehensive calculator to plan for changes in interest rate and market rise or fall.

The equity and mortgage repayment calculator provided by the BBC is perfect for anyone who is looking to move home or take out another loan and already has experience as a home owner. Usually, it is used by property developers as a guide, or anyone who owns more than two homes or is looking to sell on their current home.

This particular calculator works by firstly calculating your repayments by the same method as the aforementioned BBC mortgage calculator, but offers an additional equity calculator. The equity calculator uses the values:

  • - Current property value;
  • - Mortgage remaining;
  • - Year rise or fall in the value in percentage.

These values are then used to calculate the property value after one year and three years, then its equity after one year and after three years.

You can access this calculator at news.bbc.co.uk/1/hi/business/7042204.stm.

Guidance and Help

The BBC mortgage calculator can review your mortgage repayments and, in the case of the comprehensive calculator, your potential losses if you are looking to buy and sell on your home. However, the BBC has stated that figures calculated from their online applications should be used as a guide only; for accurate information regarding mortgages and advice, you should speak to an FSA registered organisation and professional mortgage advisor.

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