Can you help me work this out?

ammonite

I'm fiddling with some numbers to change my existing mortgage. We owe £78000 at 5.29%

If we change our mortgage to 3.99% now how much will our interest amount be every month? I basically want to know if it is worth paying the early repayment charge to get out early and onto a cheaper deal.

Mortgages confuse me because of how the interest amount changes every month.

Can anyone help with this sum? Sorry to be such a financial dork

Azrael_1701

http://www.cml.org.uk/cml/consumers/calculator/mortcalculator

ammonite

Thanks for that, So that tells me what my new repayments would be if they were 3.99% and then I guess I just subtract one from the other and multiply by 24 months?

Joe_Bloggs

Don't forget MSE Martin's Ultimate Mortgage Calculator 'Ditch Your Fix ?'
feature.
J_B.

getmore4less

The changing interest each month is irrelevent so you can't work it out that way.

You have to do a like for like.

I use 2 copies of

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

put in the current mortgage

Put in the new mortgage adding all the fees and charges.

look at the highest monthly payment

set both to interest only and make the payment the same.


Look at the details and the amount owing at the end of the cuurent fix period.

if the new mortgage is less it is better if not the cuurent mortgage is.