Can someone do my sums please?

pfpf

Hello to you all in the MFW forums. not been here for a while but still pluggin away at the old mortgage.

what with the 0.5% fall last month and the 1.5% fall today its a great time to get stuck into MFW targets.

what i would like to know is what should i be paying as of today?


28/3/2008 Advance £66674.00 @ 5.84% (BoE + 0.59% lifetime tracker). monthly payment of £499.52 over 18 years.

01/5/2008 rates fell 0.5% (date new rate applied to my mortgage).

30/9/2008 statement arrived.

balance £65534, term 17 years 5 months. rate 5.59%. new monthly payment £489.90


now since then we have had cuts totaling 2.0% but i have arranged my direct debit to pay £500.00 per month.

but what, if i took the rate cuts should i be paying now? in other words how much am i over paying by?

hope ive explained and given the relevant info.

thank you.

pfpf

just to add, i have just used the Egg mortgage calculator and although it doesnt allow the term to be added to within a month i think i have found a rough figure to to own questions.

would still appreciate other opinions so i can see if i used the calculator correctly.

cheers.

kazwookie

AH but has your supplier passed on the cuts to you, as just listening to the news on the radio, it seems that not all suppliers will be doing so.

pfpf

I'm with Barclays/Woolwich on a lifetime tracker. i only get a statement once a year but yes, the rates should be passed on.

i am on base + 0.59%. my T&C's are quite clear in my opinion.

But it is better luck if you're with Abbey, RBS or Woolwich. They all said this week that their tracker rates would go as low as the BoE base rates dared.

i understand there is alot of talk on these forums about "what if" but i am more interested in an answer to my questions rather than starting another "what if" thread.

thank you.

Welshlassie

Using the egg calculator I'd say your monthly amount should be between £412.35 (18 years) and £429.65 (17 years), therefore you are overpaying between £70.35 and £87.65 per month, however this will increase every month because your capital will be decreasing and therefore so will your interest so your monthly repayment will be paying of more of the capital each month.

Hope I explain myself properly and this helps and matches in with your workings.

tifnstav

http://www.moneyextra.com/mortgages/calculators/overpaying-your-mortgage.php#calculate

this is quite a good little calculator to use.

pfpf

Welshlassie wrote: »

Hope I explain myself properly and this helps and matches in with your workings.

thank you. yes its exactly the figures i came up with just after my OP. i didnt realise at the time of posting it was a straight forward situation where i could put known figures into a calculator.

thanks for the 2nd opinion.