The Ultimate Mortgage Calculator discussion

OXFORD_SMOGGY

getmore4less wrote: »

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

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

£301,064 @ 3.29% paying £1542pm in 2/3 months you owe £298,559/£297,835

£301,364 @ 1.19% 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

By your calculation my position will only be £200 lower overall debt, and I wil have had to pay £600 ERC so lose out! Also why does MSE calculator ask for the booking fee if you deem it irelevant?

getmore4less

OXFORD_SMOGGY wrote: »

getmore4less wrote:

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

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

£301,064 @ 3.29% paying £1542pm in 2/3 months you owe £298,559/£297,835

£301,364 @ 1.19% 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

By your calculation my position will only be £200 lower overall debt, and I wil have had to pay £600 ERC so lose out! Also why does MSE calculator ask for the booking fee if you deem it irelevant?

that is not one of my calculations you edited out crucial bits .....

what I wrote was.

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.

That include the ERC and timing of the fees if you switch now or after 31July(that makes a tiny difference)


That was based on full months, you moved onto days as you have between 2 and 3 months of savings to make.

OXFORD_SMOGGY

so how do i work it out in days?

getmore4less

you have already done that for the basic estimate and been shown how to take account of the payments to get a closer result.

Why bother you should save with just 2 month worth and you have a bit longer, also it has been show that the payments don't make that big a difference < £10s where the savings are £100s.

OXFORD_SMOGGY

How do I save if I only save £300 a month on each repayment of 2 months and the ERC is £600 surely it cancels. I only want to work out how much I save over the 2 months, IE id be willing to pay ERC of £600 if I saved £700 on repayment.etc. Currently doesnt look worth it. I dont need to know payment after years just the period I have left, of course I will save on the new fixed deal over the 2 year length as much lower interest.

OXFORD_SMOGGY

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.


I dont get this, where is the 300k coming from I dont owe this, I owe 301,045. And I need to calculate the new interest rate of 1.19%, those two calculations are using the current interest rate of 3.29%

getmore4less

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

that result was using the rate of 1.19% a typo.

if you were understanding what you were reading you would have realised that.

getmore4less

where are you getting £300pm from your own calculations had £17.32pd that's £520pm

OXFORD_SMOGGY

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

how did you calculate this every online calculator I see only does yearly breakdown not monthly

getmore4less

http://www.whatsthecost.com/mortgage.aspx

Should add that all the calculators work on a simple amortization of equal months and payment at the same time.

the reality is that the months are different lengths and the payments happen on different days(weekend/BH move the pay day).

In practice this is minor over longer periods and/or where the comparison has a clear winner.