Money Saving Overpayment Calculator 19 July 2014 at 12:22PM in Mortgage-free wannabe 8 replies 946 views

AhaliaGal28

Hello everyone
Finally cleared off some debts and want to use the money I paid out every month to start overpaying mortgage. I got the correct figure outstanding from lender & years left (18) and then did a calculation on the Money Saving Overpayment calculator. This said my current rate of interest is 4.3%.According to my mortgage Co and my offer it is Bank of England rate + 3.50% which is 4% which is what I thought anyway. Rang Mortgage Co and they confirmed it is 4% so why is the calculator telling me it is 4.3% Any ideas?I know it's only a small difference but don't want to give them anymore than they are owed
Thanks Pam

edinburgher

What is the total amount owed?

AhaliaGal28

Hi


Its exactly £114,427 and 18 yrs left on it. Monthly payment is £764
Thanks Pam

edinburgher

I also get 4.3%.

Did you have a product fee that you have added to the mortgage? Could this be throwing the figure out?

I ask as your total debt and mortgage term says that you should be paying £20/mth less than you are.

AhaliaGal28

Hi


Not too sure what you mean when you say product fee. Totally green on finance at the moment!!
Thanks Pam

edinburgher

Did your mortgage deal have a fee to take it out? For example, 4% mortgage rate with £495 product/booking/reservation fee. They're normally advertised upfront. It could explain where the extra cost is coming from...

ViolaLass

Is it exactly 18 years? c17.5 years would make the interest rate right.

AhaliaGal28

Hi


I spoke to them on Thurs and was told it was 18 yrs & 1 month exactly, will that make a difference?


Also just dug out my offer from them and it says this (will this be products etc)


Mortgage Offer £134,540 25yr Repayment
based on a mortgage of £134,540 to include fees in Section 8


Section 8
Mortgage Application £795.00
Telegraphic Transfer Fees £25.00
Brokerage Charge Payable to Broker Non Refundable £2,995.00
Estimated Fee paid before the sale to your conveyance after carrying out works on our behalf Non Refundable £220.00


It also says Salt will pay W3 Financial £3,343 in cash or benefits if you take out this mortgage


On another page it says: This offer is based on borrowing £133,720 plus £820 fees that will be added to the loan. These and the additional fees you need to pay are shown in Section 8


(Bit confused here as they are saying that the 134,540 includes the fees in Section 8 and on the other page it is £133720 + £820+ 3,215.00!)


Thanks Pam

AhaliaGal28

Hi


Sorry I've read it wrong the £133,720 includes the fees & then add £820 makes it 134,540
Pam