Bad at maths! Interest question

boybeck

If I take out a repayment mortgage of £130,000 at 6% over 25 years the monthly repayment with be £837. But can you tell me how to work out what portion of that monthly payment will be interest.

It's probably obvious, but my maths is failing me :-)

Many thanks

Jason

ThankYouAndEnjoy!

hello

check this out

http://www.moneyforums.co.uk/mortgage_calculator.php

nicecarkeys

130000 times 6% = 7800 divided by 12 = 650

650 a month is your interest amount (at least while your balance is 130000)

boybeck

Thanks very much, that's great.

I was trying to work out if I had to pay tax on profit from renting my house out. But these figures show I won't have to because the rent is less.

Jonbvn

boybeck wrote: »

Thanks very much, that's great.

I was trying to work out if I had to pay tax on profit from renting my house out. But these figures show I won't have to because the rent is less.

This is not a good thing??? If you let your house you must let your lender know. Most (good) BTL lenders will insist that the rent covers 120-130% of the mortgage interest.

boybeck

Don't worry Jon. What I'm doing is remortgaging and using the money to completely pay for a second house (going halves with partner). I have applied for permission to rent out house #1. The mortgage will stay as is, and not be a buy-to-let.