Here’s a useful tool that calculates how much a monthly Buy-To-Let Mortgage (or any mortgage actually, but we’re landlords here, right?) would cost if you enter real or hypothetical scenarios- useful for planning if you’re thinking of getting a mortgage or remortgaging. It takes into considering the amount you’re borrowing, and the life-span of your loan.
This calculator is also particularly useful for those on variable mortgages because it calculates how much monthly mortgage payments would change if there was a change in interest rate.
Interest-only Vs Repayment Mortgages
You may or not be aware of the differences between an interest-only and repayment mortgage, but you’ll notice the calculator returns “monthly interest” and “monthly repayment” figures.
The fundamental difference is that interest-only mortgage policies require the borrower to pay back the ‘interest’ on the loan every month, and not the actual debt. Ultimately, that means interest-only monthly payments are considerably less than ‘repayment’ mortgages, because with the latter, you’re paying the ‘interest’ and reducing the debt with every payment you make.
When taking out a mortgage loan, most borrowers will either opt for a repayment payment or an interest-only, which is why the calculator provides the calculations for both scenarios.
Mortgage Overpayment Calculator
If you’ve already got a mortgage and are interested in making overpayments (i.e. reducing your debt quicker than obligated to) to benefit from paying off your mortgage quicker than planned and paying less overall interest on your loan, then you may want to take a look at the mortgage overpayment calculator. The calculator will show you how much money you can save by making overpayments!