Mortgage Query - Number Crunching Help

Ms_Chocaholic

Hi

I'm just after some advice on buying v renting for my DS and want him to have some impartial advice on mortgage payments v renting.

Say he took out a £70,000 repayment mortgage today at an average sort of rate, how much would he pay back each month, of that how much would be interest and how much capital and what would be left owing at the end of three years and the end of five years.

I've not the faintest idea how to start working this out but if someone could give me some sort of idea that would be great.

Many thanks.

Ms Choc xx

tootiefrooties

First of all, an "average rate" is vague, and obviously it makes all the difference. Have a look at a few bank websites - hsbc, halifax and co-op all do good FTB mortgages - to find a mortgage he would be likely to use, and what rate goes with it (could be anything between 5.5% and 8% depending on the bank, 'type' - fixed, discount, tracker etc., and how high the LTV would be).

Once you have a realistic interest rate, put your numbers in here:

http://money.guardian.co.uk/calculator/form/0,,603156,00.html

PasturesNew

£70k, with £7k down (10%) at 6.5% over 25 years on a repayment mortgage
£425/month

For answers to your questions re how much is outstanding at various dates, see here:
http://www.tigertom.co.uk/ttcalc/mortgage.php?loan=70000&downpayment_percent=10&year=25&interest_rate=6.5&currency=%A3&amortization=on&periodicity=12&action=Calculate

Or do your own figures: http://www.tigertom.co.uk/ttcalc/mortgage.php