Looking for a mortgage? Well don’t do anything until you’ve put the new Ocean mortgage calculator to the test!
A mortgage is one of the biggest – if not the biggest – financial commitments you’re likely to make in your lifetime, and picking the right one requires a lot of careful consideration. Read on to find out how a mortgage calculator can help you.
Do your sums
There’s no set step you have to take first when you buy a house. You’ll probably have your deposit saved up, but you might prefer to approach lenders first and get a mortgage Agreement in Principle, or you might like to jump straight into your house hunt. Either way, at some point you’ll have to apply for a mortgage (unless you can afford to pay in cash).
Before you apply for a mortgage, you should work out not only how much you need to borrow to pay for the property you have your eye on, but also how much you can afford to repay each month. If your monthly repayments will stretch your finances too far, the lender you apply to may turn down your application.
Having your mortgage application rejected can hold up your house purchase – and it’s important to avoid making too many mortgage applications as this can damage your credit history. So, when you come to apply it’s best to do so after you’ve done your research and found a mortgage you can afford, which offers what you want and that you have a good chance of being accepted for.
How a mortgage calculator can help
The Ocean mortgage calculator lets you work out how much the mortgage you want will cost you each month. All you have to do is put in how much you want to borrow, how long you want to borrow it for and the interest rate, and the calculator will give you an idea of what you can expect your monthly repayment to be.
Another bonus of using a mortgage calculator is that the monthly payment estimate you’re given will include the APR. Including this interest can make calculating the monthly payments on the mortgage you want a bit tricky if you’re using a traditional calculator.
Keep in mind that the exact amount you’ll pay won’t be determined until you take out the mortgage. But it’s still a good plan to get an idea of how much the mortgage you want will cost you so you can figure out how much you can afford to borrow.
Finding the right mortgage for you
As we said at the start of this blog, it’s up to you whether you start looking for a mortgage or a home first. There’s just so much to think about and remember when it comes to buying a property that the whole thing can be a little daunting. For useful tips on what to expect if this is your first house hunt, you can check out our first-time homebuyer guides here, here and here.
Getting a mortgage can be just as stressful, but again – we’re here to help. Check out our simple guide to mortgages, which contains all the information you need to get to grips with this tricky subject.
Disclaimer: All information and links are correct at the time of publishing.