How to work out payments?

Feanor

Hi all,

The purchase price of the flat we had an offer accepted on is £207, 500. We have 5% deposit.

Our AIP with the abbey was for £240k max, and then if we found somewhere with a lower purchase price we would look at other deals.

How do we work out what our payments will be with a rough interest rate of 5.5%?

Sorry i just cant seem to get my head around it !

CLAPTON

its not easy to work out my yourself.

if you have EXCEL spreadsheet the the following will work

=PMT(monthly interest rate, months,principal,0)

where monthly interest rate is 5.5%/12
months is number of months (25years is 300)
principal is amount borrowed.

Feanor

Yikes...

Sorry that went over my head a bit! I'll ask my other half to see if he can figure it out!

Thanks.

CLAPTON

example

loan of £150,000
25 years (=300 months)
loan interest rate 5.5%

then type in a EXCEL cell

=PMT(5.5%/12,150000,300,0)

and it comes out at -921 so its telling you your monthly repayment is 921 per month

Cara79

Ok, Let me see if I can work this out.

If you've had an offer accepted for £207,500 and have a deposit of 5%, then you are looking to mortgage for £197,125.

A repayment mortgage on that amount over 25 years and at 5.5% is approx £1,210 per month. On interest only this would be £903.49.

Does this help?

I just used this calculator http://money.guardian.co.uk/calculator/form/0,,603156,00.html

cara
x

kingkano

This seems to be a handy calculator I use alot

http://www.ucbhomeloans.co.uk/intermediaries/if3_payment.html

Feanor

Thats fantastic, thankyou very much!

kingkano

welcome. I found it very useful when comparing deals, changing the IO/repayment portions or even lengthening the loan. I can see instantly what the difference is and compare to my hearts content! lol