How do i work it out

doc2009

Hi there, i have posted this question before as part of another thread but have had no replies yet so am posting this part separately.
I have an outstanding balance of about 38000 on a property worth approx 80000. Have had an offer of a 5 yr fixed rate of 3.99% from Santander at 3.99% and monthly payments of £272. I have 14 yrs still to run on my mortgage. THe Halifax as of today have a 5 yr fix on offer at 3.69%. When i put my figures through their calculator, i.e. 38000 against 80000 for 14 years, it gives a monthly repayment of £289. Am i missing something, surely 3.69% v 3.99% should give a lower monthly figure. Am i inputting something incorrectly or just not understanding rates v APR. Thanks for any easy explanation.

Jimbo1976

It is hard to give a definitive answer but I suspect that you have slightly more than 14 years left on your mortgage. Do your Santander quote show how many monthly payments there are left? If you run £38,000 for 14 years at 3.99% through a mortgage caculator then it comes out at £294. Even if you do the same calculation for 15 years its more than £272.

Also you say you owe about £38,000? Can you tell precisely how much is left? If it is a few months since your last statement then your balance may have come down below £38,000.

Even so it is hard to get anywhere near the £272 figure with a longer term and a reduced balance. I suggest you have a word with them. Both Santander and Halifax work on daily interest so assuming the term and the balance are correct its hard to see why Halifax would charge more than Santander

getmore4less

As above make sure the numbers a based on the same value and term.

Any fees?

Also what is the current/follow on rate of your current deal.

doc2009

Thank you for your input, you were correct about the asmount being different. On checking with Santander i owe £35060 with 14 yrs to go. The deal with Halifax looks good then as it should work out at £266 a month. Santander had notified me i would go onto their SVR of 4.99%. As far as i can see on the Halifax website, there are no fees and i also get £150 cashback for moving across. So his deal works about £1000 cheaper than Santanders. £6 pm x 60, plus £150 cashback and also not having to pay £460 arrangement fee to Santander. Any further thoughts anyone.