Need help with mortgage interest rate calculator

kendun

Evening folks,

I would appreciate a bit of help from anyone with understanding how the mortgage overpayment calculator works.

I have tired to use the calculator on the MSE forum found at http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator#result
but the figurs the calculator provides is different to the rate I am paying to Halifax and would like someone to help me understand.

the remainder of my mortgage is £40,500 with 20 years remaining. On the MSE calculator, when I type in the term of 20 years and an interest rate of 3.99 %, the amount I get for repayment is £245 but the actual amount I pay Halifax is £358.

I have queried this with Halifax, but been told that the Halifax interest rate calculation is accurate and the system calculates based on a daily interest rate. I am a bit confused by the £100 difference between the online calculator and the actual charge.

I think I am possibly not filling in the correct details or being a bit thick and would appreciate any help to help me understand

ValHaller

Try this one http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

I get 248.11 on your figures.

kendun

Hi Valhaller,
I am getting the same figures, but Halifax are saying that their system is very accurate and are sticking to the £358 calculation. Don't know what to do ?

ValHaller

Try this one http://www.financecalcs.co.uk/smartcalcs/intrelreleased.php It works the other way giving APR from payments, term and amount.

I suggest you investigate whether there are other payments (insurances?) added and if not, then I think you need to raise a formal complaint.

lee111s

Possible the SVR has increased?

ValHaller

lee111s wrote: »

Possible the SVR has increased?

It looks like 9.1%. That is not an SVR!

kendun

ValHaller wrote: »

Try this one http://www.financecalcs.co.uk/smartcalcs/intrelreleased.php It works the other way giving APR from payments, term and amount.

I suggest you investigate whether there are other payments (insurances?) added and if not, then I think you need to raise a formal complaint.

Thank you Valhaller,

I have tried the link and find it a bit complicated as I don't fully understand the info I need to fill in. Does the site have a guide/ manual ?:o

kendun

lee111s wrote: »

Possible the SVR has increased?

The SVR hasn't increased Lee, it's still 3.99%

ValHaller

kendun wrote: »

Thank you Valhaller,

I have tried the link and find it a bit complicated as I don't fully understand the info I need to fill in. Does the site have a guide/ manual ?:o

Loan amount 40500
Months 20 years * 12 months/year = 240
All repayments 358
Use rule of 78

This will give an APR of 9.1%

Are you paying any kind of arrears, unsecured loan (Halifax? Unlikely) insurances?

kendun

ValHaller wrote: »

Try this one .

I suggest you investigate whether there are other payments (insurances?) added and if not, then I think you need to raise a formal complaint.

I haven't signed for insurance or anything like that, so I am quite worried. I need to speak to Halifax again but worried that I may get the standard reply that the system is accurate. I need to look at getting some more info if making a formal complaint.

kendun

ValHaller wrote: »

Loan amount 40500
Months 20 years * 12 months/year = 240
All repayments 358
Use rule of 78

This will give an APR of 9.1%

Are you paying any kind of arrears, unsecured loan (Halifax? Unlikely) insurances?

Thank you for the calculations Valhaller.

I don't have any arrears or unsecured loans and definitely didn't sign up to any insurances. I need to look at a formal route if Halifax isn't able to explain the discrepancy :mad: