Need help with mortgage interest rate calculator

Annisele

Have you recently made a significant overpayment?

I'm wondering if the £358 is based on your balance before you made an overpayment, and Halifax's systems haven't caught up yet.

Other than that I can only think of Valhaller's suggestions of arrears, insurances and other loans.

ValHaller

kendun wrote: »

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.

Let's go at it the other way. Using 40500 outstanding today at 3.99% and trying different terms in the bbc calculator, 12 years gives £359/month

So could it be that you have 12 years remaining?

Can you tell us when you took this mortgage out, how long for and any significant events such as over or underpayments, further advances?

lee111s

You need to go in and speak to the lender, ask them to go through the payments/calculations with you.

kingstreet

I suspect the residual term is shorter, not the 20 years mentioned.

I think VH is on the right track.

There are three variables. If the rate is right and the amount is right, only the term can be wrong.

kendun

Thank you all for your replies. I took out this mortgage in May 2007 and I think sometime in 2010/11 I started making over payments. I took out a 25 year mortgage so technically I have 19 years and 2 months left on the mortgage.

ValHaller

kendun wrote: »

Thank you all for your replies. I took out this mortgage in May 2007 and I think sometime in 2010/11 I started making over payments. I took out a 25 year mortgage so technically I have 19 years and 2 months left on the mortgage.

OK, it looks like when you started making overpayments you did this by reducing the term - or your lender interpreted you instruction that way. I suggest you ask them the other question - when do they expect the mortgage to be paid off? Do let us know the outcome.

kendun

Thank you Val,
I did not make any instructions, I spoke to Halifax and started making overpayments, other than this I haven't had any discussions with them. I will contact them and ask them the question re when they expect it to be paid off and will let you know once I have an answer.