There are three main types of shared ownership calculators that will help you understand your position. These are:Affordability calculator
An affordability calculator will help you understand how much you can afford to borrow based on your income and deposit. This is by looking at the difference between what you can borrow with a mortgage and the cost of renting the remainder.
A shared ownership calculator could be used to figure out how much it would cost per month for your total loan and rental fees. This provides an estimate of how much money you'll be borrowing over a given period.Shared ownership and rental calculator
A shared ownership and rental calculator will help you determine the monthly repayments for your loan and your rent. First, you input the property’s total price, your deposit, how much you need to borrow, and how long you want your mortgage to last.
The information is then used to calculate what % of the property you'll own and what % you'll rent. If possible, it’s best to use a shared ownership and rental calculator from a specific lender since they offer more accurate rates.Repayment calculator for shared ownership
A repayment calculator for shared ownership is a calculator that can help you to understand how your monthly repayments will change over time. First, you input the property’s total price, the amount of money you'll borrow, and the term over which the mortgage will be repaid.
The tool will then calculate what % of the property you'll own and what you'll rent. It also calculates your monthly repayments and provides an option to show how they will change over time if you choose to increase your ownership percentage.
Some repayment calculators are more sophisticated than others and will include additional factors such as:Ground rent:
All shared ownership properties are sold on a leasehold basis. As the tenant, you will pay both ground rents and mortgage payments each year. Some advanced calculators consider this when showing the overall cost for living in a shared ownership property.Disposable income:
By calculating your disposable income, you'll get a much better idea of what you can afford to borrow and avoid getting into unmanageable debt. A good shared ownership calculator may include an expenses and income section to help you understand what you have left to pay for your mortgage.Your credit history:
Your credit score
will play a huge role in the rates offered by lenders. Including credit history information in your calculations can help you get a better idea of how much you can borrow.