When you are about to embark on a property search, the online contractor mortgage calculator is often the starting point for many contractors.
It is important to understand that many mortgage calculators are there for a general idea of borrowing only. In order to get a firm idea it is vital that other factors that impact borrowing are also taken into account. These include: maximum allowable mortgage term, number of dependents, debt to remain after new mortgage completion, credit history and credit score as defined by the lender and deposit as a percentage of the purchase price.
The issue is that most calculators do not ask for all of that information, as they would have to take into account lending criteria from a vast array of lenders, making the calculation unworkable. The key thing to do after the initial calculation is done for borrowing, is to engage an adviser to pinpoint the relevant lenders and to define the income that lenders are willing to use. The additional factors impacting borrowing can also be applied by the adviser, to give an accurate idea of borrowing and monthly payments.
The mortgage calculator does play an important role around feasibility of borrowing, but is only useful when a mortgage enquiry is relatively tentative. It is still vital to engage a professional contractor specific mortgage adviser when the enquiry turns into a need for specifics.