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(1236 reviews)Learn about mortgages, mortgage lenders, and mortgage rates in the UK. Home Legal Direct have partnered with a leading mortgage services company to offer you the very best care and advice when it comes to finding the right mortgage for your circumstances.
This calculator is an estimation calculator built on assumptions about your lender and about the market. It is a starting point and a thinking aid, however it is not something you should be basing decisions on. For that, you should talk to us and we will advise you.
Buying your home is probably the most important, expensive and exciting purchase you will ever make. Home Legal Direct have partnered with a leading mortgage services company to offer you the very best care and advice when it comes to finding the right mortgage for your circumstances. As whole of market, independent mortgage consultants, they have access to over 100 lenders and many exclusive products. You can start your new mortgage journey now by contacting us today!
This calculator has a purely mathematical function. It is a starting point and a thinking aid, however it is not something you should be basing decisions on. For that, you should talk to us and we will advise you.
Read about average mortgage rates
A variable interest rate changes periodically, tracking the financial markets, interest rates, or some other financial benchmark. This mechanism is like the interest rate set against a credit card. Floating mortgage rates or tracker rates as they are sometimes known usually have a term association as well as a loan to value association. Those factors together can determine how favourable (low) the rate starts. Once the term runs out, the variable rate usually jumps to a substantially higher rate. Sometimes fixed, sometimes variable again. It just before this that it is a good time to switch mortgages by remortgaging.
Fixed rate mortgages maintain a fixed interest rate for the term of the contract. For instance if you sign up to a 2 year fixed rate of 3%, then for that 2 years your rate will not change. The rate on offer is linked to the length of the term and the loan to value amount. That being the ratio between the value of your home, and the amount of money you are borrowing. The lower the ratio and the longer the term, the higher the interest rate as there is a greater risk to the lender. Fixed rate mortgages are great in times where a country's financial future is unsure and rates of interest are generally volatile.