Calculating mortgage payments

Crispness

Hi

I'm coming off a Nationwide 5.63% 5-yr fixed rate this month and have just checked what the new payments will be. New rate is supposed to be 2.5%. But on a balance of £96528 with 9 years left, Nwide are saying the payments shd be £1022, while I calculate it at £999.

Seems like a big difference to me.

Am I right? or are they?

TIA

kingstreet

It's £999.02 if the mortgage, term and rate are exactly what you've posted.

If it's eight years and a few months, rather than nine complete years, it will be different.

Exactly eight years is £1,110.44, so I suspect it's inbetween.

getmore4less

with the £1022 payment the motgage is paid off in 106 months with the last payment arround £300.

So 8years 9/10months

Goldiegirl

I assume this is a repayment mortgage.

I used to work for the Halifax - there was a huge mathmatical formula used to manually calculate a repayment mortgage monthly payment.

Whatever way you've used to calculate a monthly payment, it will be different to the way the Nationwide has done it.

If you were really keen you could ask Nationwide for the formula - and you'll also need the exact amount outstanding on the mortgage and the exact term outstanding.

Oh, and at least A level maths is helpful

dimbo61

Why not ask your lender to keep your mortgage payment static and that way you will pay off your mortgage early.
You will save interest and not notice any difference as you have been paying this amount every month for the last 5 years.