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How a simple online calculator can help with your mortgage needs

Buying your first home is one of the biggest events you’ll ever experience in life, so it pays to do as much research as you possibly can to prepare for this major milestone – that includes working out how much you need to borrow and, crucially, how much you can expect to pay back each month.

Most high street bank websites feature a handy calculator for mortgage repayments, but the Council of Mortgage Lenders also offers an easy to use online tool. The CML is the non profit making trade body for lenders and they offer impartial information, so the website is worth a visit.

The calculator, located at www.cml.org.uk/cml/consumers/calculator/mortcalculator is very straightforward – simply enter the amount you want to borrow, followed by the number of years over which you intend to take out the mortgage. Finally, input the interest rate of any mortgage you may be considering.

Once you have pressed the ‘calculate’ button, the site will provide you with how much a repayment mortgage will cost each month and also the amount you would expect to pay if you were to choose an interest only option.

Payments on a repayment mortgage cover both the interest and the loan, so the amount to be repaid falls with each payment. On the other hand, if you take out an interest only mortgage you will only ever be paying the interest, so the actual mortgage amount will not be reducing as you pay.

In addition to the online calculator for mortgage payments, the CML has a host of useful information for first time property seekers, including the basics of buying a house. Happy home hunting!

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