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Your guide to using a mortgage calculator

Buying a home is the biggest purchase a person makes during their lifetime, because of this it is also the most stressful, particularly when it’s the first such purchase. In addition to finding a good mortgage broker or advisor you’ll need to educate yourself if you’re to chose wisely and work out your finances prior to going ahead with such a big decision. In this guide we introduce you to the mortgage calculator tool and advise you on the other factors you should be considering in relation to the costs of buying a home.

How to use a mortgage calculator

Mortgage calculators can be found on many websites and all work in the same way. First of all you enter the mortgage required (e.g. the cost of your new home), the repayment period in years and the interest rate. You then click on the ‘calculate’ button. This will return to you the monthly repayment amount and the interest only repayment amount (how much interest is included in your payments).

The results of the calculation can very often come as somewhat of a surprise, particularly as the interest repayments make up the most of the figure.

Prior to house purchase: Factors you should be considering in relation to the costs of buying a home

Solicitors fees

Solicitors fees will generally be quoted prior to you deciding to use the solicitor in question. However there are additional fees that may be payable at the end of the process so you need to ensure you have a significant amount spare in case this occurs. The fees will be payable on the day of exchange of contracts, so having the cash freely available is essential for the house purchase to go through.

Mortgage broker fees

Mortgage broker fees are generally payable prior to completion. Your mortgage broker will advise you as to what these are and when they are payable.

Post house purchase: Factors you should be considering in relation to the costs of buying a home

Council tax

Council tax can amount to a significant amount of money each and every month so it’s important you find out what council tax band your house is in (you can do this by checking the local authority website online).

Building insurance

Building insurance is a requirement of taking out a mortgage as the mortgage lender need to have an assurance that their liability is protected in the event of a building issue. You’re free to use whatever building insurance providers you wish but you’ll need to provide the details to the solicitors for the house sale to go through (usually you’ll just need to show a quote print out).

Here is an example of mortgage of £100,000 and repayments:

Interest Rate






5 years






10 years






15 years






20 years






25 years






30 years






35 years






You might be interested to know about: Household Insurance.

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