Working out mortage total

crabbycrabcrab

Hi im researching into getting a mortgage.

Im wondering if there is a guide or calculator to work out how much interest Ive payed over the 25 years at a fixed rate (just to get a idea)

Also to work out the amount i actually paid for the house would be home value i agreed on plus the interest paid. So 125k + interest if paid over 25 year = true amount paid for home

Hope this makes sense. Im new to this. First time mortager over here

kingstreet

A key facts illustration shows the total amount paid and the amount paid per £1 borrowed.

crabbycrabcrab

I don't really want to contact the mortgage adviser/bank giving the mortgage everytime i want to calculate this. Is there anything available online that i can use to do this myself?

StuC75

Much of this would be shown on the KFI (Key Fact Indicator) that a mortgage advisor would provide..

One technicality is that the longer term rate is unknown, since it is guess work to determine what happens outside of the fixed rate period .

So the KFI will assume X number of years on the deal, then Y years (remainder of the term) at the present Standard Variable Rate..

Although you would then actually just switch to another deal with the same lender or move elsewhere - circumstances permitting (employment eligibility & sufficient equity in the property).. So such decisions for the Follow on period would be based on how the world economy is then (Interest rates etc)..

in excel if you put =PMT( Rate / 12, Years * 12, Capital Amount)
Gives the payment amount (close on),

which for mine gives =pmt(0.0379/12,25*12,123250)
shows 636.35 which is within pennies, multiple that by 12 and 25 shows the total that would be paid to the end of the mortgage if that rate was available...

But that's just fixed for about another 2 years... so in 2 years I would recalculate based on what is available then...

crabbycrabcrab

StuC75 wrote: »

Much of this would be shown on the KFI (Key Fact Indicator) that a mortgage advisor would provide..

One technicality is that the longer term rate is unknown, since it is guess work to determine what happens outside of the fixed rate period .

So the KFI will assume X number of years on the deal, then Y years (remainder of the term) at the present Standard Variable Rate..

Although you would then actually just switch to another deal with the same lender or move elsewhere - circumstances permitting (employment eligibility & sufficient equity in the property).. So such decisions for the Follow on period would be based on how the world economy is then (Interest rates etc)..

in excel if you put =PMT( Rate / 12, Years * 12, Capital Amount)
Gives the payment amount (close on),

which for mine gives =pmt(0.0379/12,25*12,123250)
shows 636.35 which is within pennies, multiple that by 12 and 25 shows the total that would be paid to the end of the mortgage if that rate was available...

But that's just fixed for about another 2 years... so in 2 years I would recalculate based on what is available then...

Thanks alot for your input, this is the kind of answer I was looking for. I'll try the formulas tonight when I get home from work.

In the mean time if anyone knows a site that will do this. Please do post!

+REP

kingstreet

What exactly are you trying to achieve by these calculations?

crabbycrabcrab

kingstreet wrote: »

What exactly are you trying to achieve by these calculations?

The true price I'm paying for the home. The price is 122k. However with all the interest on top i would like have an estimate of how much I've really paid.

StuC75

This is usally a good guide - much in the same format as the KFI..

http://www.calculator.net/mortgage-calculator-uk.html

If you are comparing lenders then look at what there current SVR rate is - as this will show you what kind of loading they have on top of the Bank of England rate.. usefull if probs remortgaging (it happens)..

compare costs over the fixed period only (upfront fees), and also if looking at different terms consider if the balance left at end of each year puts you nearer to key Loan To value points (e.g 60 /70/ 75% ltv gets 'better deals' when remortgage)...

crabbycrabcrab

StuC75 wrote: »

This is usally a good guide - much in the same format as the KFI..

http://www.calculator.net/mortgage-calculator-uk.html

If you are comparing lenders then look at what there current SVR rate is - as this will show you what kind of loading they have on top of the Bank of England rate.. usefull if probs remortgaging (it happens)..

compare costs over the fixed period only (upfront fees), and also if looking at different terms consider if the balance left at end of each year puts you nearer to key Loan To value points (e.g 60 /70/ 75% ltv gets 'better deals' when remortgage)...

This is exactly what I was looking for! Thanks again.

+rep

kingstreet

crabbycrabcrab wrote: »

The true price I'm paying for the home. The price is 122k. However with all the interest on top i would like have an estimate of how much I've really paid.

You're assuming you remain there for the whole mortgage term and there is no rate change during that time?

TBH I tell my clients you'll pay back roughly double what you borrow and they seem happy to accept that.

Are you planning to use this information to compare mortgage products? If you are, that's exactly what the APR is designed to do, as it assumes the follow-on rate stays the same for the whole term.

StuC75

No Prob..

Don't forget you want to try to factor in possibility for overpayments (how Couple of £k paid earlier can reduce the long term interest cost)..

Don't dwell on the 25 \ Full Term cost but - only on the part the fix is there for - because once the rates start moving up that all becomes out of date...

good luck with the spreadsheets - have been there doing loads of variants to work out best choice (mainly product type and terms \ fees / without fees checks) ..

crabbycrabcrab wrote: »

This is exactly what I was looking for! Thanks again.

+rep