Mortgage Rate

garcon6

Can someone please illustrate to me how to calculate a monthly mortgage payment.

Initial Rate: 2.65% Fixed up to 2017

The overall cost for the comparison is 5.4%

Maximum Loan to Value 75%


Current Balance is £118726.78



We are currently on a Fixed Rate of 5.35% paying about £758 monthly.

We will be staying with the same provider as we won't need to go through any credit checks etc.

Thanks,

Garcon.

TrickyDicky101

Hi

I make it you have 22.5 years (or thereabouts) remaining on your mortgage term - is that correct?

If so, and assuming you keep the same term at the new rate your payments should be c.£585 per month during the fixed period.

Paully232000

If your mortgage is going to be for 118726 the payment for the first 2 years will be £542, based on a 25 year mortgage.

I used this, and you can too and see what changing to say, a 20 year mortgage will do to the payment.

http://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator#results

garcon6

we are coming to an end of a 5 yr fix £133,000 was borrowed i put down a £32,000 deposit.

garcon6

I am not to sure about what is the Maximum Loan to Value is.

garcon6

Also there is a fix for 5 years 4.44% maximum loan to value is 65%

garcon6

also there is fix for 2years at 2.65%

max loan to value is 75%

Paully232000

garcon6 wrote: »

I am not to sure about what is the Maximum Loan to Value is.

Loan to value is the maximum amount a mortgage company will give you in comparison to how much the house is worth.

ie 75% LTV

house worth (for ease) £100,000

max you will get from a mortgage company will be £75,000 and you have to find the other £25,000

You need to find out
how much your house is worth
how much you have as a deposit, or equity in your house or a combination of the two.

garcon6

what is the best site for finding out how much your house is worth.

audigex

Zoopla or Mouseprice will give you some idea, but it's based on local prices and recent sales, so is only much good if the houses in your area are similar and in similar condition

eg the house I'm about to buy is valued at around 70% of its true value, because one side of the street is 30x terraced 2 bedroom houses, of which 10 have been sold in the last 5-10 years... but the side I'm buying on is 10x 3 bedroom semi detached houses of which none have sold recently. So the valuation is completely skewed

If you bought it fairly recently, you can probably just use your purchase price if it's in similar condition. Other than that it's either "best guess" or get an estate agent round to value it. (Get three and average them, if you want to be very sure)

garcon6

i used Zoopla we bought for £166,000 and they have valued our house at £187,000 not sure that is a true estimate.