Mortgage calculator with multiply interest rate

jerrycatlover

Hi everyone, I have been searching about this for days but still no luck.

I am looking for a calculator or the fomula (preferable) to calculate the payment of the mortgage that has multiply interest rates.

For example, with most of the current mortgage deals, they all have a initial interest rate e.g. 1.99% for x months then the rates changes to their standard variable rate e.g. 3.69% for the rest of the mortgage period.

I want to use this fomula to calculate the actual saving I can make from those deals.

Please help!

lee111s

You'll probably just need to make one on a spreadsheet. Should be pretty easy to do.

amnblog

Why would you stay on the 3.69% rate after the lower rate finishes Jerry?

If you think you might, all mortgage illustrations will show the total interest over the full mortgage term.

AnotherJoe

jerrycatlover wrote: »

Hi everyone, I have been searching about this for days but still no luck.

I am looking for a calculator or the fomula (preferable) to calculate the payment of the mortgage that has multiply interest rates.

For example, with most of the current mortgage deals, they all have a initial interest rate e.g. 1.99% for x months then the rates changes to their standard variable rate e.g. 3.69% for the rest of the mortgage period.

I want to use this fomula to calculate the actual saving I can make from those deals.

Please help!

Its very unlikely you would ever go on the SVR for the rest of the mortgage term so factoring that in would be very misleading in nearly all scenarios.

eg lets say deal 1 is 1.79 for 2 years followed by 3.69, deal 2 is 1.59 for 2 years followed by 3.99. Fact is at the two year point you'd almost certainly go onto another 2 or 3 year deal anyway so working out the next 23 years(say) at 3.69 or 3.99 would be pointless.

ACG

Have a look on google for an amortizization calculator.
It wont show the savings as such, but it will show what the balance will be every month. So you can see how much your balance would be in say 2 years on each deal.

jerrycatlover

yes i think a spreadsheet will be helpful. However I haven't figured out the formula yet. Do you have any ideas?

jerrycatlover

you are right amnblog, i won't stay on the 3.69% after the initial low interest period. However, everytime I switch to another cheaper deal, there is a high admin fee applied. I want to take that into consideration too. So this calcuation I am looking for will give me a direct comparison between different deals including their standard variable rate.

jerrycatlover

thanks for your comment anotherjoe, I totally understand your point. True I won't be stick with the same provider after the promoption period. However, everytime I switch to a new supplier there is a fee involved. I tried to factorise that in with the formula.

jerrycatlover

Good idea ACG, I will look for the formula of the amortizization calculator instead.

AnotherJoe

jerrycatlover wrote: »

thanks for your comment anotherjoe, I totally understand your point. True I won't be stick with the same provider after the promoption period. However, everytime I switch to a new supplier there is a fee involved. I tried to factorise that in with the formula.

You cannot do that because
1. You might not switch to a new provider, and if you stay with the same one there will be different costs (ranging from zero upwards) depending on the deal, and
2. Even if you switch there wont necessarily be a cost, my daughter is switching from Santander to Nationwide and theres no cost for the deal she is looking at, and
3. What costs will be in 2 years time, you cant say, even lenders cant say. Rates will be different and the cost of different deals will be different.

All you'll end up with is a spreadsheet that gives you an invalid result because of the inputs not being applicable in 2 years time. GIGO.

Just go for the best deal now.

SavingSteve

Deleted as just repeated what others have said!