Mortgage Payments Calculation Help

surpoob

getmore4less wrote: »

It is common for the payments to be fixed for a year, and adjusted at year end, some also recalculate at a signiicant event like overpayment or interets rate changes.

In you case to reduce admin costs they don't do the adjustments or paments by SO. but probably calculate the interest daily/monthly

The actual interets is commonly calculated daily or monthly, and paid by the monthly payment any surplus coming off the capital, some add the interest on a different day to the payment so you can see the ballance change up when the interest is added then go down when the payment is made.

The exact method of calulating the payment and interest does vary so not all calculators will match the lender way of doing it. http://www.whatsthecost.com/mortgage.aspx

for your numbers
Interest Rate 5.34%
Mortgage £104621.23
Remaining Payments 273 months.

I get £663 so same as you.

Using the lenders number it brings the term down to 268months

It might be worth looking back a the previous years statements to see if thay match what the calculatos give

I have overpaid many times and the mortgage provider have recalculated my payments each time (the term has stayed the same everytime and not been reduced). Each time the new payment is very close (a few pence different) to what I calculate it to be if I was being charged annual interest.