Help with mortgage calculation

Pippasmum

Hello all

Wondering if anyone can help me with a payment calculation. My husband and I are looking at moving house, we have a 50,000 deposit plus whatever equity we get from our own home but this probably won't be much more than 10-20000.
We will obviously be going through our finances and will seek help from either a broker or the bank directly (early days) but I have been using a few online mortgage calculators and am somewhat confused by the results and wonder how indicative these actually are?
Basically we will be looking at a mortgage of about 180000 - 190000 and based on the payment calculators and a 25 year mortgage term, I am getting results of around 700 a month (I have been as accurate as I can be in terms of other commitments etc.
My query is that we currently have a mortgage of around 120000 but we are paying 700 a month for this, so I am confused as to how the payment on a larger mortgage is coming out the same. Now I will acknowledge that when we took this mortgage out, my partner had quite a large credit card bill - which has since been paid off in full, but would this have impacted on the deal we got at the time (it was a remortgage on our existing property)? We both have excellent credit scores and now no huge amounts of credit on anything other than a small credit card bill and car finance.
I apologise in advance if this is completely impossible to answer without having the full facts - I'm only asking as I really don't want to waste anyones time looking at houses that we can't afford?

TrickyDicky101

What rate is the existing mortgage and what rate is the new one?

What is the remaining term (and outstanding balance - is it actaully £120,000?) on the current mortgage?

These are the things that determine the payment calculations (given new mortgage will be over 25 years and assumed £180k).

ACG

Lower rate or longer term or a combination of the 2?

Pippasmum

Truthfully I don't know off the top of my head what our current rate is - hubby has the paperwork - the rates I have been looking at for the new mortgage are varying from about 1.4 up to 3.18. Is the LTV a factor here as we have a lot more to put down on the new house than we have previously had on our current home? Sorry if this doesn't make sense - like I say we are going to do everything properly, just due to look at a potential part ex tomorrow and wondering if I am being naive trusting the online calculators.

AnotherJoe

Pippasmum wrote: »

Truthfully I don't know off the top of my head what our current rate is - hubby has the paperwork - the rates I have been looking at for the new mortgage are varying from about 1.4 up to 3.18. Is the LTV a factor here as we have a lot more to put down on the new house than we have previously had on our current home? Sorry if this doesn't make sense - like I say we are going to do everything properly, just due to look at a potential part ex tomorrow and wondering if I am being naive trusting the online calculators.

That will ultimately affect what rate you are on, so since you asked "how can it be" well yes rate is one of the key determinants in monthly cost, the two being (obviously) length of time and amount borrowed. If you don't know the rate, or how long the older mortage had to go then there's no need for mystification until you understand what they are.