Switch Mortgage to a new deal

samkma

My fixed term is coming to an end and trying to switch to a new deal with the same bank, I don't want to re mortgage now.


My current rate is 5.89%



£ 120,608.43 as at 20 Nov 2019

This amount is not a final settlement figure

£931.06 Current monthly payment.


When I try to get a quote online it shows as 2 offers available



An initial rate of
2.64% fixed until 31/01/25
Monthly payments of
£730.48
Total amount payable
£160,210.40



An initial rate of

2.59% fixed until 31/01/23
New monthly payment:
£727.61
Total amount payable:
£163,463.74


Why is my payable amount £40k more than I owe now?

Paully28

samkma wrote: »

My fixed term is coming to an end and trying to switch to a new deal with the same bank, I don't want to re mortgage now.


My current rate is 5.89%



£ 120,608.43 as at 20 Nov 2019

This amount is not a final settlement figure

£931.06 Current monthly payment.


When I try to get a quote online it shows as 2 offers available



An initial rate of
2.64% fixed until 31/01/25
Monthly payments of
£730.48
Total amount payable
£160,210.40



An initial rate of

2.59% fixed until 31/01/23
New monthly payment:
£727.61
Total amount payable:
£163,463.74


Why is my payable amount £40k more than I owe now?

Interest........

kingstreet

That's what you'll pay over the remaining mortgage term assuming you take the deal, then roll onto whatever the follow-on rate is after the fixed rate ends.