Remember, too, that you’ll need to set aside money for Stamp Duty, if you’re buying a property over £125,000, as well as the Land Registry fee to transfer the property into your name. You can use our mortgage early repayment calculator to see the impact of paying your mortgage back before the end of your term. It’s also worth bearing in mind that if you do take a fixed or discounted rate then often these will come with Early Repayment Charges, which mean that if you want to repay your mortgage before the deal is up you could incur a large fee. You’ll also need to factor in the valuation fee, charged by lenders for commissioning a mortgage valuation, which is a basic inspection of your property, as well as the cost of a more detailed survey if needed. If, however, you’re taking out a larger mortgage, it might be more cost-effective to take out a mortgage with a lower rate. If you’re taking out a relatively small mortgage, for example, it may be cheaper to choose a deal with a slightly higher interest rate but lower fees. Often the mortgage deals with the lowest rates carry the biggest fees, so it’s important to factor these in when trying to work out the best deal for you. ![]() It’s charged when your mortgage completes. The arrangement fee is, as the name suggests, a fee charged by a lender to set up the mortgage on your behalf. The booking fee is a non-refundable charge paid on application that allows you to reserve the mortgage you want. Lenders usually charge two types of mortgage fee: an arrangement fee and a booking fee. When choosing a mortgage, it’s important to consider any additional fees and charges you might have to pay. You can see the impact paying a higher or lower interest rate would have on your mortgage payments by using our interest rate calculator. If your mortgage rate changes, you can use the calculator again to show what your payments would be on your new rate, as well as the change to the total amount over the term. This mortgage calculator shows you how much you would pay each month and over your mortgage term, assuming the rate remains the same. For example, you might be on a low mortgage rate at the moment, but if interest rates rise during this period, you could end up paying a higher mortgage interest rate when you come to remortgage, or if you move onto your lender’s standard variable rate. The exact amount of interest you’ll pay depends on the mortgage rate you’re on. How much interest will I pay on my mortgage? If you don’t remortgage to another deal after your initial deal ends, you’ll default to your lender’s standard variable rate which is likely to result in higher monthly payments. Remember that you’re unlikely to pay the same interest rate throughout your mortgage term though, as most deals only last for a few years. You’ll also see exactly how much interest you’ll pay overall, and when you use our mortgage repayment calculator, overpayments can also be added to see how this can help bring the total amount you’ll pay down. You can then enter these figures into our mortgage repayment calculator, then it’ll crunch the numbers and tell you how much your mortgage repayments might be every month, as well as the total amount you’ll pay over the term. To work out exactly how much you’ll pay every month, you’ll need to know how much you want to borrow, over how many years, and what interest rate you’ll be paying. Once you’ve got an idea of how you’d like to repay your mortgage and how much you can borrow you can get started and calculate mortgage repayments based on the amount you need. If you’re not sure which mortgage deal is likely to be most cost-effective for you based on your individual circumstances, our expert advisers can run you through the available options to make sure you’re getting the best deal possible. If you choose a shorter term, your monthly payments might be higher, but you’ll reduce the total amount of interest you need to pay back, as you’ll be paying off the loan more quickly. On a repayment mortgage the longer the mortgage term you choose the cheaper your monthly payments will be, but you’ll end up paying back more overall. You can find out more about this in our repayment vs interest only guide and use our interest only mortgage repayment calculator to find out how much you can expect to pay. If it’s interest only you’ll just be paying the interest rather than reducing the amount you owe. ![]() If your mortgage is a repayment mortgage you’ll make monthly mortgage repayments which cover both the capital you borrowed and the interest due. The cost of your mortgage depends on several factors, including how much you’re borrowing, your mortgage term, and the rate of interest you’re paying.
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