How is the estimated monthly mortgage figure on a property page calculated?
From the asking price alone, using fixed assumptions that are the same on every portal: a twenty-year term, five per cent a year, and no deposit.
The Est. Mortgage line under the asking price is a repayment calculation on the full asking price, using three assumptions that never change:
- A term of twenty years, or 240 monthly payments.
- An interest rate of five per cent a year.
- No deposit — the whole asking price is treated as borrowed.
Those assumptions are identical on every portal, in every country, for every listing. They are not a rate anyone has offered you, they take no account of your circumstances, of local lending rules, or of what a lender in that country would actually charge, and no lender has seen them.
Treat the figure as a way of comparing two listings on the same page, not as a guide to what a property would cost you to finance. It is not financial advice and it is not an offer of credit. Speak to a lender or a broker in the country the property is in before relying on any number.
The mortgage calculator further down a property page starts from the same assumptions and lets you change the price, the deposit, the rate and the term. Listings that show Price on inquiry have no price to calculate from, so they show no estimate.