Money Saving Overpayment Calculator

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

Replies

  • edinburgheredinburgher Forumite
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    What is the total amount owed?
  • AhaliaGal28AhaliaGal28 Forumite
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    Hi


    Its exactly £114,427 and 18 yrs left on it. Monthly payment is £764
    Thanks Pam
  • edinburgheredinburgher Forumite
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    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.
  • AhaliaGal28AhaliaGal28 Forumite
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    Hi


    Not too sure what you mean when you say product fee. Totally green on finance at the moment!!
    Thanks Pam
  • edinburgheredinburgher Forumite
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    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...
  • ViolaLassViolaLass Forumite
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    Is it exactly 18 years? c17.5 years would make the interest rate right.
  • AhaliaGal28AhaliaGal28 Forumite
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    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
  • AhaliaGal28AhaliaGal28 Forumite
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    Hi


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