Most people will hire the services of a mortgage broker to help them to compare interest rates and find the best deal, but what you might not know is that if you were to take care of the comparisons yourself, you could allow your financial expert to focus on other, more productive, loan tasks. At The Mortgage Calculator, our free to use tool is ideal for exactly this role; in fact we actively encourage our users to get to grips with the comparison potential afforded by our technology.
How can it be used to compare loans?
The most important piece of information afforded by a bank will be its current rate of interest. These rates can be prone to fluctuation, but if you’re planning on signing up to a fixed rate mortgage, then you won’t have to worry about these changes anytime soon. You will undoubtedly already know how much you’d like to borrow, as well as how much you can afford to put forward as a deposit.
So, what’s left to help you to compare the options between different lenders?
The interest rate input field of course! You can enter the same information everywhere else, including the duration of your loan and how often you intend to pay back what you owe (we find monthly to be the more comfortable option). The only thing that you’ll have to modify is the interest rate area.
If one lender was offering rates of 1.5%, another at 2% and the third one at 2.5%, you’ll be able to see how these different percentages can affect what you are expected to pay back each month. You could even introduce your own ‘worst-case scenario’ rates, which will often be quite a bit higher than the current ones, just to give you an idea of the most that you’ll ever be expected to pay if terms change in the future.
You might also find that choosing the frequency of your repayments will allow you better options when it comes to how much you pay, or what you can afford. The trick is to play about with our calculator and take a note of how much you should expect to dedicate to your mortgage each month, as well as what you’ll be left with once your repayment has been addressed.