My mortgage interest rate calculations

random321

Hi all, thanks in advance for any pointers in the right direction!

I'm a bit confused at the figures on my mortgage documentation based on rate increases.

Like many I've been looking into potential interest rate rises as the point of re-mortgaging and the figures on my mortgage offer are quite concerning!

I currently pay £536.74 per month on part 1 at 2.04%, and £508.65 on part 2 at 1.89% per month.

I'm fixed for another 1.5 years on part one and 2.5 years on part 2 so at this point obviously interest rates could be a lot different!

The figures below are a direct quote from my mortgage offer but I really can't get my head around the increase amounts listed below if rates rose to 6%? I put the figures into an online calculator and the combined monthly amount was calculated close to £1500 not the figure close to £2200 listed below. Can anyone tell me what I'm missing here?

Part 1:

The interest rate on this Loan can change. This means the amount of your instalments could increase or

decrease. For example, if the interest rate rose to 6.00% your payments could increase to £ 1,018.34

Part 2:

The interest rate on this Loan can change. This means the amount of your instalments could increase or

decrease. For example, if the interest rate rose to 6.00% your payments could increase to £ 1,169.19

This means that the total amount of these payments could increase to £ 2,187.53.

ACG

How much is your current balance? 
How many years remaining on the mortgage? 

random321

As of today:

Outstanding Part 1: £102,000
Remaining Term: 19 years

Outstanding Part 2: £130,000
Remaining Term: 27 years 

ACG

Ball park, I get around £1,550. 
The only thing I can think is they are potentially working off the amount as it was at the beginning of the mortgage/deal rather than as it stands now? 

random321

Thanks, good to know at 6% it wouldn't actually increase to £2200 (although we obviously don't know what interest rates will be at the point my fixed rates end)

I only took out this deal a couple years ago and haven't overpaid so the documentation still doesn't look right to me.