Please help me regarding my Property Broker illustration !

cheeky-virgin

I have got the illustration by my mortgage broker and calculations are confusing me , i thought i should ask here before i speak to my broker.

I am looking for 100% mortgage and property price is about £170,000 so he send me all paper work how its gonna like and plus i am getting 25000 loan on this house from same broker.

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- property vlauation >> 170,000
- term >> 25 years
- Repayment method >> Intrest only
- 23 payments at fixed rate 5.94% = £804.49
- 277 payments at variable rate, 7.24%= £980.56

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he mentioned total amount i am paying back is " £455,131.89"

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but when i calculate the payments its a different amount from uper payments mode.. and its below £ 300,000.

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can some body explain me why i will pay this much money , or may be he is charging more coz of this loan ...?

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Although he is explaining that total amount i am borrowing is £187,524 and i will be paid £964.65 every month this is over all cost , the monthly payment is for unsecured loan is £160.16.

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Its all confusing me please help me regarding that.

Madjock

it's not clear exactly how much you are borrowing. You say you are getting £25k as an additional unsecured loan but then quote the total borrowing as £187,524. What is the actual unsecured element? And are you adding any of the lender's fees to the loan?

Mr_helpful

It's probably a Northern Rock together product or similar 95% mortgage and part unsecured loan. The only person you should be seeing is your adviser as its his job to make sure you understand it all.

cheeky-virgin

Madjock wrote: »

it's not clear exactly how much you are borrowing. You say you are getting £25k as an additional unsecured loan but then quote the total borrowing as £187,524. What is the actual unsecured element? And are you adding any of the lender's fees to the loan?

i borrowed 170K and then he deducted 5% as a deposit so thats mean 95% mortgage so if you calculate 5% on £170k then its remain £162500 so he added up £25k(which is un secured loan) in it and its comes as £187500...

Rick62

The difference between your monthly payments (less than £300k) and the £455k quoted is the capital. You will still owe the £187k at the end of the term. But as helpful says, get your broker to go though it all with you until you are fully satisfied that you understand.