We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
please help cant work this out please help
mondeoglx
Posts: 42 Forumite
we asked for a final figure to pay of our mortgage
with co op building society was given figure of £25788.18
we are on a fixed rate of 2.64% then would have 7 mths on there base rate we pay £497.76 per mth of i x this by 48 =£23892.48
with the last 7 payments if i x this by the same amount =£3484.32 if i add these together means i would be paying back £27376.80 cant understand why this figure is so high hope you can help
with co op building society was given figure of £25788.18
we are on a fixed rate of 2.64% then would have 7 mths on there base rate we pay £497.76 per mth of i x this by 48 =£23892.48
with the last 7 payments if i x this by the same amount =£3484.32 if i add these together means i would be paying back £27376.80 cant understand why this figure is so high hope you can help
0
Comments
-
Why would you X the last 7 payments at the fixed interest rate if you are going to be on a different rate? Your monthly payments will be higher/lower during the final 7 months depending on what their variable rate is.I am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
What?
Amount outstanding?
Duration?
Product type?
Early repayment fee?
In English?0 -
The amount outstanding is the first figure ehhhhhh
Duration is 48 mths 2.64% ehhhhhhhh
Then 7 mths base rate ehhhhhhhhhh
Repayment ehhhhhhhh
Early repayment fee 1030 ehhhhhhhh
English ehhhhhhhh0 -
Are you certain that the outstanding term is 55 months? If the term is in fact 48 months (consisting of 41 on the fixed rate, then 7 on the SVR) then the maths looks a lot more sensible.0
-
yes 48 mths on fixed then 7 mths on svr
i rang them0 -
The final figure does not include interest over the 55 month period - it is the amount you would repay if you paid it off today.
The repayments of 497.76 include interest over that period of 55 months of around £1,6000 -
To exit the Fixed Rate product now. You'll have to pay an Early Redemption Charge. Normally that will be a % of the outstanding balance at the date of repaying the mortgage.
Settlement figures aren't calculated as you suggest.0 -
The interest is 2.64% over around 4.6 years.
As a rough calculation, you can say that the average balance over the period will be half of the balance now = £12,894
£12,894 x 2.64% x 4.6 (years) = approximately £1,600
This is why there is a difference of around £1,600 between the amount you have to pay if you repay it now, compared with the amount you would repay if you repaid it over the next 55 months0 -
@Thrugelmir - yes, usually around 4% if paying 4 years early. The numbers given suggest this hasn't been included in the final figure though0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards