Mortgage payment calculator results - question

dazjw

Hi,

Hope someone can help - I am sure I am just being dumb and there is a simple answer to this. If I use a mortgage payment calculator and enter in the amount left on my our current mortgage, the number of years left and the current interest rate, the payment figure is around £50 less than I am actually paying. Why would this be? Is is something to do with us having had the mortgage for a few years already and the results are based on taking a new mortgage?

Thanks,

D

lee111s

Did you input the exact amount remaining to be repaid?


Do you have the exact amount of months remaining as you input on the calculator? Are you sure the interest rate is correct?


If so, I suggest you question it with your lender to find out exactly why.

TrickyDicky101

When was the last date that your monthly payment (to the mortgage provider) changed? I assume you pay the same amount each month.

Have you made any overpayments in the intervening months? Lenders do not always update monthly payment amounts in the event overpayments are made but, crucially, the overpayment should be deducted from the outstanding loan balance and should result in you paying less interest overall.

dazjw

Hi,

Thanks for the replies. Yes, I entered the correct amount and interest rate - the calculator only had years so I had to round up to a year.

We pay the same each month. I am overpaying though - it must be that. Our payment is 'x' but what is coming off is x + the over payment.

There you go, looks like it was a simple answer :-)

Thanks,

D

dazjw

Hmm, I am still a little confused. The rate/payment last changed when the rates reached 0.5% - so our rate has been the same since then. So, lets say the repayment since then has been £750 and for the last 2-2 1/2 years I have been over paying £150. Is the repayment figure less in the calculator because we would have been paying more interest over the length of the mortgage that we have, than over the 18 years I am putting into the calculator? I presume the only way to get the repayments down for us would be to get a new deal.

Think I may have answered my own questions :-)

Thanks,

Darren

getmore4less

There are only 4 variable to a mortgage

Amount owing,
Term,
Rate,
payment,

Any three determine the 4th.

when you start you usualy say £x borrowed for Y years at Z% that determines the payment.

if you change the payment(which you have done) the real term changes, the contractual one won't.


If you ask most lenders will reset the payment to a new level after overpayment.