Re-Mortgaging...Please help me calculate...

silverbullit

I bought my house with a Bristol & West mortgage in November 2006; it was a 2yr fixed at 5.39%.

The deal ends at the end of November 2008.

I am trying to work out how much more I would have to pay monthly on my mortgage if the worst happens (and I can't get a better deal) and I have to go onto B&W's Standard Variable Rate (SVR) which is currently 7.09%

Original purchase price of house: £92,000
Current monthly (fixed) payment: £538.99

I'm totally pants at calculations, so any help from you financial wizzes would be appreciated. If you require any additional details, please let me know...Cheers!

bigbloke45

Are you saying your mortgage is £92,000? How long is your mortgage for? Is it a repayment mortgage or interest only?

A quick calculation puts your new repayments (on a repayment mortgage) at some £651.68 per month based upon an loan of 25 years from now.

You say you are "pants" at financial calculations, but you needn't be!. Just go and spend about 25 quid on a financial calculator ( I think Hewlett Packard are the best) and, reading the instructions, you will be able to "model" all of your scenarios. I promise you, it will set you free!

Good luck!

Mr_helpful

silverbullit wrote: »

I bought my house with a Bristol & West mortgage in November 2006; it was a 2yr fixed at 5.39%.

The deal ends at the end of November 2008.

I am trying to work out how much more I would have to pay monthly on my mortgage if the worst happens (and I can't get a better deal) and I have to go onto B&W's Standard Variable Rate (SVR) which is currently 7.09%

Original purchase price of house: £92,000
Current monthly (fixed) payment: £538.99

I'm totally pants at calculations, so any help from you financial wizzes would be appreciated. If you require any additional details, please let me know...Cheers!

Most lenders sites have free calculators

bigbloke45

Mrhelpful is quite right, but the sites are fairly restricted in what you can model.

I still think you will be better off buying a financial calculator (for loans, set the calculation to "begin") You also get the chance to do so many other things which can change you from being a donkey to being a stallion!

Locoblade

My spreadsheet (in sig) might help

Gorgeous_George

Assuming it was over 25 years, I make it that you will still owe £88,316 after two years at 5.39% and your repayments will jump to £649.60 at 7.09%. However, I make the initial payments £558.93 and NOT £538.99.

For the repayment to be £538.99, I suggest you borrowed £88,717 at 5.39% and will owe £85,165 after 2 years. Your repayment will then rise to £626.42.

Or maybe your mortgage was over 27.06140456 years.



GG

_dave__4

In case you don't have Excel to use Locoblade's excellent spreadsheet, you can try some calculations yourself here:-

http://calc-calc-calc.net/get/calc/Mortgage-Comparison/?L=92000&I1=5.39&Yrs1=2&SVR1=7.09&Term1=25

The above link confirm's G.George's figures of £559 jumping to £650 per month, for an initial loan of £92,000 (falling to £88,316 now) - but you can try your own figures.

rmc76_2

I have found the link below useful, simple and you can try any rate you like:

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

_dave__4

rmc76 wrote: »

I have found the link below useful, simple and you can try any rate you like:
http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

Hmmm... That calculator seems to assume that interest is charged on the full balance at the start of each year, even though monthly payments have been made during the year. How many lenders still use that method - does anyone know?

silverbullit

Thanks everyone for your input.

Incidentally, my initial mortgage amount was for £87000, over 25yrs, and it was repayment. There was also an arrangement fee of £699 which was added to the 87k. On these figures, the BBC calculator (referred to by rmc76) came up with the correct figure for my current monthly payment (£538.99) although the calculator is very basic and does not give any indication of what I may end up paying monthly on the SVR.

Locoblade

You'd pay about £620 a month on the 7.09% SVR