Calculating Payments

delaneya

Good evening all,

Got my mortgage statement through today and everything looks to be heading in the right direction.

Only issue I can see is my interest rate and and payment don't add up. Could someone help clear this up for me.

My balance is £61,892.73 of £71,999 borrowed.
I have had two payments with the interest rate of 4.59% = 454.45
And 10 with a interest rate of 4.95% = 467.06

I have been paying £535 so slightly over paying.

So my question is, "Are the payments of 467.06@4.95% correct?" There look high to me. if there are wrong any idea to why?

kingstreet

Can you think of anything important you might have left out?

bigadaj

OP you need to post the term of your mortgage as well for people to be able to help.

delaneya

Sorry for late reply. The mortgage is for 25 years but am year 4 through it. had a quick read of the T&C but see nothing. The type is a flexable offset. So i can over pay as much as i like but I have not linked the mortgage to a bank or saving account yet.

here is a section of my statement.

1st March 2013 Interest £262.68 Balance £62191.57
1st March 2012 Credit £535 Balance £61892.73

Now form what i can see payment should of been £467.06 + £68 over payment is that correct with the numbers above with the interest rate of 4.90% as is on my statement..

kingstreet

A repayment mortgage of £61,892 over 21 years at 4.9% = £393.72.

A repayment mortgage of £61,892 over 20 years at 4.9% = £405.05.

Are you sure the term is correct?

Whatever you choose to pay over and above that, is up to you.

Please clarify what you are trying to establish here, it isn't clear what issue you think you have?

You've also mentioned 4.59%, 4,95% and now 4.9%.

Interest on £62,191.57 x 4.9% = £253.95 per month.

Interest on £62,191.57 x 4.95% = £256.54 per month.

delaneya

its a 25 year mortgage with 21 years left. Had the house 4 years now.

My bad it should of been 4.95% not 4.9%.

I just want to check if the minimum payments are correct. When I put the details in on the online calculator I get a different figure than the £467.06 minimum I have been told need to pay.

If that's correct, great. If not I need to work out why and I guess speak to the bank.

delaneya

Just got off phone to bank. Its wrong.
My payments should be £395 or there about. Asked for that in writing off them since my statement says it should be £467.06.

No idea how there got it so wrong.