Mortgage on £77,000 property?

Question

Just wondered if anyone could give me a rough guide to what the monthly mortgage payments would be on a property bought for £77,000?

I have no idea about these things, but my brother is hoping to buy a flat for £77,000 and I'm planning to help him out with his mortgage payments as he's currently in a relatively low paid job. On a standard mortgage, assuming there's not much available in the way of a deposit, maximum a few thousand I'd think, over 20-25 years, what would the monthly payments be (average)?

Answer 1

If you borrow the full £77,000 then you will repay £478.35 per month on a repayment mortgage over 25 year. Interest only would be £352.91. I used an interest rate of 5.5% which is about what you could expect.
For 20 years the interest only would be the same, but the repayment would increase to £536.94.
It's best to pay over as short a period as possible as you will make savings on interest this way. I also recommend fixing your rate for 5 years at least as rates look to be on their way up. Make sure you remember to remortgage after 5 years or you'll have to pay the banks standard variable rate which is likely to be significantly higher and is a rip off!
Use this calculator from the BBC website for more info if you want to play around with different mortgage terms:
http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml
Good luck.

Answer 2

1) There are many "mortgage calculators" on the internet.
22) Go to Google and enter the following search term: "mortgage calculator". You will get many references that will help you with your own question. Regards.

Answer 3

at 5% it will be 500 pounds for every 100.000 you borrow most estate agents sites have calculators that will do the sums for you