If you plan on arranging a mortgage, it is best to review your finances and be confident on what you can afford to borrow. This is imperative to all applicants, but it is understandable many buyers struggle to review their finances in an effective manner. Thankfully, help is available, and many people find it helpful to use such a calculator.

What is a mortgage calculator?

A mortgage calculator helps people figure out the amount of money which needs to be paid on a potential mortgage. The user inputs information into the calculator, and a sum is provided which should make the cost of paying off the mortgage clear.

The information needed for a mortgage calculator includes:

• The value of the property
• The amount of the deposit
• The loan term
• Depreciation value
• The rate of interest

Using a mortgage calculator is simple, and it doesn’t take much time. However, it is an extremely helpful tool, and there are some leading benefits of using one.

A mortgage calculator helps with budget planning

Budget planning is an essential part of the mortgage process, but not everyone is confident with numbers. The mortgage calculator provides you with a quick assessment on whether your available budget will be sufficient to buy a home, and if it is, at what price. Whether a potential property buyer is house-hunting or merely assessing their options, this is crucial information that all buyers need to consider.

If the calculator informs you that you cannot afford to buy a property, you can determine how much of a mortgage you need to save to afford your preferred home.

Mortgage calculators can save you money

There is flexibility in arranging a mortgage, with different components involved. By reviewing different levels of interest rates, amortisation and the deposit, you can find different options and solutions to your problem. It may be that one solution is more attractive than others, helping you to save money when arranging a mortgage.

Using a mortgage calculator helps you understand the mortgage process

It is helpful to know as much about the mortgage process as possible, but it can be a challenging topic for many people to comprehend. However, as a calculator helps you determine how mortgages work and criteria banks use, it is a great tool for anyone looking to develop an understanding of how mortgages work.

Mortgage calculators save a lot of time and effort

Most people are keen to save time and effort, and a mortgage calculator is an excellent time-saving device. People can quickly ascertain if they are likely to obtain a mortgage from the comfort of their home, office or wherever they have an internet connection. This means you don’t need to arrange a meeting with a mortgage professional until you are sure you will qualify for a mortgage.

Anyone who is considering applying for a mortgage will find a calculator to be of benefit. Familiarise yourself with a mortgage calculator and determine what type of mortgage is most affordable for you.