online mortgage calculators

bubblegum1985

Hi

I am wondering how accurate the mortgage calculators are? I have just rang my mortgage company as I was overpaying my mortgage and I have had to stop that amount.

When typing in the figures onto mortgage calculators online (including moneysaving expert) they are coming out at around £40 per month less than what the company have wrote to me and said.

Could anyone tell me if its worth writing into them to ask them to check it?

Many Thanks

kingstreet

Are you using the correct balance, remaining term and mortgage rate? I tend to trust the lender's system above others because it has all the correct, up to the minute, relevant information.

bubblegum1985

Yes, I just rang the company to ask them about my repayment and then discovered they had an online calculator so put the figures that I was told over the phone in theres as well as BBC and they are still coming up as £40 difference.

kingstreet

Can't suggest anything other than ask lender to check data then. They don't often make such an elementary mistake, but you never know. Were your overpayments removed from the balance, rather than left in an overpayment reserve, as some lenders do?

bubblegum1985

I think they were removed, at least the figure they gave me included the overpayments. The only thing I can think of is it because they are adding daily interest and the calculators are showing monthly? But then if the lenders site is showing the same as the other calculators this is why i am questioning it?

Its very strange.

G_M

There are manypossibleexplanations.

* What outstanding balance are you using? Today's? It is recalculated daily.
* Have the overpayments been included?
* Are there any fees to take into account?
* What remaining term are you using? This also changes daily, so avague "£18 years" will only give an aproximation
* what interest rate are you using?
* what date is being used for starting the recuced payments?

The calculators are simply mathmatical algorythms so unlikely to be wrong- yours or theirs. It is the accuracy and completeness of the figures entered into them that make the difference.

The lenders online calculator will be similar to BBC and others: fairly crude(ie ignoring fees, daily charges etc) whereas their real-time customer computer will be more accurante and all-inclusive.

bubblegum1985

- i am using todays balance
- yes overpayments included
- no fees
- the term they said was 29 years 4 months, so i was using 29 years; i know this will affect it slightly but not by such a large amount
- using the interest rate i am on which is the standard variable rate
- reduced payments 1st June

I think what has thrown me is that their website is showing the same figure that the other ones were, i understand that the online figures wont be exact but to me £40 difference is a lot.

G_M

A difference of £40 on a £60 pm repayment?

Or a difference of £40 on a £960 pm repayment?

bubblegum1985

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