Mortgages London | Mortgages in London

The internet is brimming with mortgage calculators that help borrowers calculate their monthly repayments, and what proportion of those payments actually pay off the loan and not just the interest. These mortgage calculators differ to some degree and finding the right one to tell you everything you need to know about your repayments can be quite a mission. If you want to be more in control of your finances, financial experts are advising mortgage holders to create their own mortgage calculators using Excel.

There are several online tutorials for creating a bespoke mortgage calculator using Excel. The tutorials show the viewer step by step how to make a fixed rate loan repayment calculator using a spreadsheet. Once you have formulated the spreadsheet you can calculate how much you are paying on principal, interest and how much money is then left on the loan. To get the monthly calculations, the first cells that need to be formatted are the total loan amount, the yearly interest rate, the term of loan in years, the monthly payment due on the loan and the monthly interest rate  because this is the frequency of the repayment.

Under this there will be five columns of calculations that show repayment amount (which will be the same for each month because it is for fixed rate mortgages), the principal amount (which you will see gradually increase over the months), the interest (which will gradually decrease over the months), the beginning loan balance and the end loan balance. The tutorial demonstrates how to format the cells in a step by step process to create a mortgage calculator that shows exactly how much you will be paying off your loan over the coming years, and it can be tailored to show how these payments could change when switching to another mortgage deal. Bespoke mortgage calculators of this description mean that as a borrower you can be more in control of your finances than ever, and know exactly how good a new mortgage deal really is before you commit to their terms.

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