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Mortgage Interest Rate? sorry to appear thick !!!

Please can someone explain in simple English, how to calculate mortgage interest. Say I had a mortgage for £125,000 with the interest fixed at 4.5% how do I do the calculation to find the monthly payment????

Comments

  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
    £125,000 / 100 x 4.5 = £5625 Per annum or £468.75 per month.

    I.e. if you have a £125,000 mortgage loan, then your interest payments per month will be £468.75. If you have a repayment mortgage, your monthly payments will be higher, depending on how long a term you have taken the mortgage over.
  • Gra76
    Gra76 Posts: 804 Forumite
    Part of the Furniture Combo Breaker Mortgage-free Glee!
    There's a simple mortgage calculator link below, tap in how much you want to borrow, the interest rate it'll be borrowed at and how long the mortgage term is and it'll do it for you:

    http://www.mortgagecalculator.org.uk/
  • bel_2
    bel_2 Posts: 9 Forumite
    Thanks for replying so quickly :)
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