Help!

Waterfall19

So maths, escapes me.


Am i right, the difference on a mortgage rate of 1.99 & 1.89% is 0.001%


So on £500,000 the savings is 500£


Sorry and thank you!

mouthscradle

The difference between those two rates is 0.1%

Waterfall19

mouthscradle wrote: »

The difference between those two rates is 0.1%

yes, X0.1/100 or 0.005. Am i looking at this correctly?

CarrieVS

You've either made a typo or you didn't mean % when you say it's 0.001%, as it's 0.1%, but 0.1% of 500,000 is indeed 500.

But it's not quite as simple as £500 more a year, what with compound interest and what with repayments changing the amount of capital you're paying interest on every month (assuming you're talking about a repayment mortgage.)

I have a degree in maths and actually did a course all about this sort of calculation, and I'm still going to say the best way to work it out is to use a mortgage calculator that someone already programmed. (There was a point when I knew the amortisation formula and how to apply it, I swear.)

Let's see, have I been here long enough to post links yet? Here's one, the search engine of your choice has others.

amnblog

Yes, in simple terms the difference between the rates is one pound in a thousand = £500 in your example.