Here is quick and easy way to calculate your monthly mortgage payments. Simply enter the amount you wish to borrow, the term over which you intend to pay it off and the interest rate. Then hit the 'Calculate' button.
The first figure gives the total monthly payment for a straight repayment mortgage, including both interest and payment towards the capital loan amount. This reduces the amount owed on the capital, month by month. The second figure shows the amount of interest payment only.
Inflation devalues money over time. The NPV calculation estimates the "Present Value" of an interest only mortgage at completion based on having only paid interest and no capital repayments. The value is an estimate based on a prediction of future inflation. However the figure makes the point that without ever paying any of the capital back, the loan value can be substantially reduced over time, even though the amount stays the same.
These figures are only approximate. We recommend that you obtain exact figures from a specific lender before committing to any mortgage.
