While conditions in the wider economy continue to pose challenges to those acquiring, developing and letting property, the ongoing growth in the number of software based property investment and management tools must be seen as a welcome development, for landlords and property developers alike. What’s more, many of these tools are now freely available. One such tool, of which you will find several different examples online, is the mortgage calculator. Here we will take a quick look at the mortgage payment calculator on the Santander site, and in looking at the basic functions of this software explore the advantages of using this kind of property investment tool.
As the name suggests, a mortgage calculator can quickly provide some illustrations of both the initial and the ongoing costs of different mortgage products. The mortgage calculator can also provide an estimate of the maximum loan amount that you can access, given the size of the deposit at your disposal.
While the Santander mortgage calculator is really set up to provide this information to first time buyers, those who are moving house, and people looking to remortgage, it can still offer some useful ball park figures for the property investor on the types of deals that the bank can offer for both fixed and variable rate mortgages. Used in conjunction with the mortgage calculators included on the sites of other mortgage lenders, this software can take some of the leg work out of comparing the products currently on offer in this competitive and therefore constantly changing market.
For the property developer, the mortgage affordability calculator is one of the most useful facets of the Santander mortgage calculator. The entry of figures on just three fields is required for an estimate of maximum loan amount. These fields are annual pre-tax earnings, any extra yearly income, and monthly loan commitments.
The mortgage repayment calculator function can then project the ongoing costs of the different mortgage products on offer, given the value of the property, the size of the deposit you have to invest, and the term of the mortgage that you are considering. A table is provided allowing quick comparison of all the pertinent aspects of the various products, given the parameters you have entered, including maximum loan to value percentage, initial and ongoing interest rates, booking fee costs, and any additional benefits offered by the deal.
While the maximum loan amount and ongoing costs illustrations provided the mortgage calculator will not directly apply to buy to let mortgages, it is still very helpful to know what the bank is offering to personal mortgage customers when it comes time to negotiate the financing of your new acquisition. For many property investors, the remortgage deals will perhaps be the most relevant details provided by the mortgage calculator.
Note for the first time property investor: Most buy to let mortgages are not regulated by the FSA (Financial Services Authority). For some impartial advice about buy to let mortgages, take a look at the U.K. government site: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/DG_10034496
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