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Current Mortgage Rate Calculator

Many homeowners worry about their mortgage and finding the best rate. The interest rate and type of mortgage you take out plays an essential part in monthly repayments and how cost effective this is for you; before you take out a mortgage, despite how good the interest rate seems, you should have at least some idea about the affordability of the loan.

A rule of thumb used by most homeowners is that the mortgage should not take up more than 25% of your monthly combined household income. This should also apply to variable mortgages as well, which can be hard to predict.

You can use a mortgage rate calculator to establish the estimated monthly repayments on your mortgage. However, this won't do much for variable rates. If you decide to take out a variable mortgage (such as a tracker mortgage) then you should try and opt for a deal that "caps" the monthly repayment at a certain amount so you don't go over the limit - the calculator should then be used to calculate the "capped" rate each month. If you can't afford to cover other living costs per month when paying the optimum mortgage amount then look for a cheaper deal.

Alternatively, you can use an interest rate calculator for tracker mortgages, especially if you don't have a cap on your repayments. An interest rate calculator estimates potential rise and fall in Bank of England interest rates, which is what your mortgage rate will be tied to. If, in 20 years time for example, the interest rate predicts you'll be paying out too much for the mortgage, try another deal.

Some excellent online mortgage rate calculators are:

Yourmortgage.co.uk

BBC.co.uk/homes/property

Thisismoney.co.uk (also includes an interest rate calculator).

 

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