What would the repayment be?

quietandy

Hi

Is this how it works when you move onto lender's SVR from a lower fixed rate:

Original deal: £100k loan @3.5% for 3 years on 25-yr term = £501 monthly repayment
..pay off £20k over 3 years...
deal moves onto SVR @ 5%. 80k loan remaining and 22 years of term left = £500 monthly repayment

So essentially the payments don't change?

kingstreet

You've paid off £20k in three years of a 25 year mortgage?

That can't be natural. Have you been overpaying?

If you have, yes, if £80,000 @ 5% over 22 years is £500 a month. I trust your calculator works as I'm not going to do it myself...

dimbo61

You are now paying 5% on your mortgage with a better Loan To Value than when you started you fix WHY?
If you have no plans on moving and selling up Look for a new deal now

lee111s

You haven't paid off 20k over three years unless you've been overpaying.

You've paid 20k to the lender over three years, the majority of which would have been interest.