The Ultimate Mortgage Calculator discussion

OXFORD_SMOGGY

It is a low ERC because we are nearly at the end of the current feal

getmore4less

you compare the position now with the position at free switch time.

for an estimate
you can ignore the setup fee(you just change when you pay it)
just look at the difference in rates to start with.

£300k * (0.0329 - 0.0119) / 12 = £525.

You save a max of £525pm, repayment will make that a little bit smaller.

so net position with £615 fee the number of payments is
1. -£90
2. +£435
3. +£960

probably should have switched months ago.

More accurate is add the fees make the payment the same and see whats left.

£300,000 @ 3.29% paying £1542pm in 2/3 months you owe £298,559/£297,835

Then you pay the £749 so £299,308/£298,584 to start the new mortgage


£301,364 @ 3.29% paying £1542pm in 2/3 months you owe £298,877/£297,631

if you have 2 payments £431 better off, if 3 £953 better off.

They will be close but it will depend on exact details and timings of payments

OXFORD_SMOGGY

Appreciate the help, not sure it is right though. You can't ignore the arrangement fee that has to be factored in. Where is 300k coming from, my debt is 301k so why are we using 300k as a comparison.

OXFORD_SMOGGY

I have just made payment so have 2 payments left, start of June and start of July before fix expires

OXFORD_SMOGGY

We should have switched a while back, however the larger ERC was a bit much to stomach and also our LTV was a lower band.

getmore4less

OXFORD_SMOGGY wrote: »

Appreciate the help, not sure it is right though. You can't ignore the arrangement fee that has to be factored in. Where is 300k coming from, my debt is 301k so why are we using 300k as a comparison.

The arrangement fee needs to be paid anyway so the difference is the interest on the fee for 2/3 months <£2/£3 on the estimate it is included in the main calc.

£300k is close enough for this comparison again difference in interest on 2/3 months is small

ok just to keep you happy I will do the estimate.....:)

[STRIKE]£300k[/STRIKE] £301k * (0.0329 - 0.0119) / 12 = [STRIKE]£525[/STRIKE] £526.75.

You save a max of £526.75pm, repayment will make that a little bit smaller.

so net position with £615 fee the number of payments is
1. -£88.25
2. +£438.50

I will leave the other calc to work out yourself.

OXFORD_SMOGGY

I just found out the arrangement fee is £999 not 749, on the MSE calcluator it says this:

Only ditch your fix if you can get a mortgage with a rate less than...
(Based on a £301,064 mortgage, currently at 3.29%, with a £615 early repayment charge)
2.47%
If there's an arrangement fee, as mostly happens, the rate would need to be lower.
To save, you'd need a rate of...
ARRANGEMENT FEE TO SAVE, YOU'D NEED A RATE OF...
£500 1.81% or lower
£1,000 1.14% or lower
£1,500 0.48% or lower

OXFORD_SMOGGY

Ok so not worth it then?

'You save a max of £526.75pm, repayment will make that a little bit smaller.

so net position with £615 fee the number of payments is
1. -£88.25
2. +£438.50'

And with the £999 booking fee will be negative -88, +438, -999

OXFORD_SMOGGY

Payment is on the 2nd of the month and the fix runs out n 31st of July 2017

OXFORD_SMOGGY

£301,064 * (0.0329 - 0.0119) / 365 = £17.32 a day better off

Days left until fix ends 83 so saving of 83 x £17.32 = £1437.56 on new rate over that period.

So total saving is £1437.56 - ERC of £614.69 = £822.87

Is that right have a cracked it? Surely it also depends on how much I repay a month doesn't it also and mortgage length? The calculator factors in the arrangement fee also so how do I factor that in?

Arrangement fee of £999 for fix until 30 sep 2018
So £999/length of fix from now = £999/873 days= £1.14 a day effectively.
So £1.14 x 83 days = £94.98 over remaining current fix deal.

So overall saving to switch now will be £822.27- £94.98= £727.29

Surely cant save me that much to switch it now and pay ERC and booking fee?