Dan's Mortgage Help

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Mortgage Help from Dan

If you know me or have checked my C.V, you'll see that I worked for a year as a Mortgage Co-ordinator. Friends and family are forever asking me for advice even now so this page is to help people like them. It has a MORTGAGE CALCULATOR, AND COMMON QUESTIONS

MORTGAGE MINDER
Mortgage Data:
House Price:
Down Payment:
Annual Interest Rate: %
Term: Years
Results:
Mortgage Principle:
Total Payments:
Monthly Payment:

Mortgage Calculator

This calculator allows mortgage calculations on a 'Repayment' basis. It does not show 'endowment' calculations for two reasons- 1) I don't recommend endowments 2) Setting up this calculator was hard enough!!

If you are considering re-mortgaging, enter the the mortgage amount is
 the difference between the house price and the deposit. The table will then
 work for you.

Here's how you use this form:

  1. Enter the House Price.
  2. Enter the Down Payment.
  3. Enter the Annual Interest Rate percentage.
  4. Enter the Term, in years.
  5. Click Calculate.

Common questions

Is changing my mortgage lender really worthwhile?

Whilst working for Mortgage Helpline, often asked me this. Whilst changing mortgage lenders is not in everybodies interest, it is in the interest of many. On an average �80,000 mortgage over a standard 25 year period, the total repayable is around about �135,000. Changing mortgages every few years on sensible products could save approximately �25-30,000 (less fees).

Is it really worth paying extra off my mortgage?

Almost always YES!! When paying a mortgage, the largest portion of your monthly payment is interest. By paying extra, you pay more of the capital off. On a repayment, doubling your payments could allow you to pay your off in about 6 years as opposed to the standard 25 years.Mortgages which allow overpayments are called Flexible Mortgages

I've just signed a new but found a better one. Should I change to it?

Probably not! When you enter into a new, most lenders will insist that you stay with them for atleast 2-3years. If you don't, they can charge you a 'Redemption Penalty' which can often be very high. The lower the interest rate you are on, the more likely the 'tie in' period will be substantial. Check the small print on your to see if you are tied to it.

What on earth are these Inteligent Finance and Open Plan mortgagesall about? They seem like double dutch!

They can be very useful but not to everyone. The basic principle behind them is that if you give the lender your savings account business aswell, you can get a cheaper mortgage. The way it works is as follows-: Any money you have in a savings account does NOT earn you any interest BUT the same amount of money is interest mortgage. This is great if you have large savings but pointless if you don't or hoped to earn high interest on your savings for a holiday or a new car

My insurances are linked with my mortgage. What do I do?

Normally insurances with your mortgage lender are automatically cancelled when you change them. Check with your lender this is the case. If possible, DO NOT take out insurances with your new lender. Most lenders will charge you extremely high premiums compared to specialist insurance providers. Some lenders will charge you an extra �25 or so to take your insurances elsewhere. Do so!! You'll save that money within a couple of months. I once reduced someones buildings insurance from over �300 per year to under �100 and gave them the same level of cover. Mortgage lenders will take advantage of complacency so explore your options first.

I'm scared by this endowment talk in the media?What do I do?

It is well known (THOUGH OVER HYPED) that endowments are not leaving enough to pay off Many people have cashed in (surrendered) their endowments and changed their mortgage to repayment. In the first few years of an endowment mortgage, this is not a bad idea. It's often sensible to cut your losses to a minimum. It should be noted though that not all endowment providers are failing. Changing when years into a mortgage is almost always foolish. As interest is accrued on endowments, you'll get much more back by leaving it that little bit longer. One option is to change only part of your mortgage to repayment. This will mean that your endowment to make less to redeem the mortgage. This is often the most prudent action to take.

IF YOU HAVE ANY QUESTIONS, PLEASE E-MAIL ME AT [email protected]. I AM HAPPY TO HELP

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