What Type Of Information Can A Mortgage Calculator Provide?

Depending on the level of built-in whistles and bells, a mortgage calculator can generate a raft of information including:

* comparison of monthly payments for interest-only and repayment mortgages

* analysis of payments and the level of capital outstanding

* projections of interest and capital paid off during each year of the mortgage

Mortgage calculators are also a handy way to get a reality check on what you can afford to repay without resorting to a diet of baked beans. As a rule of thumb, aim for no more than a third of your monthly income. In some areas where house prices are higher than average, such as London or Edinburgh, it may not be possible to stick to this limit.

Working backwards, you can use a mortgage calculator to find out the maximum you can borrow against 33 per cent of your monthly income.

To get at this data, you will need to know how much you earn. Most people will know this already from their pay slips, but it may be more difficult to quantify a monthly income if you are self employed or have recently set up in business.

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