Mortgage repayment - different costs

annabanana82annabanana82 Forumite
2.5K Posts
Seventh Anniversary 1,000 Posts Name Dropper
Forumite
Hi all, 

My mortgage deal just expired and the new rate started today with my first payment at the new rate due in Feb. 

If I log into my account is says the next payment due is £497.44. However; if I go into manage my mortgage it says my contractual repayment is £503.44.

Total outstanding £63,821.56
Years remaining 13 years 3 months
Old rate 1.79%
New rate 3.54%

The £6 really doesn't make a difference I'd just like to know which is accurate. I think the outstanding amount before this month's payment was £64177.40? 

I'd hazard a guess the £503 relates to the higher balance maybe? 

Thank you 
Make £2023 in 2023 (#36) £858.66/£2023

Replies

  • gihgih Forumite
    31 Posts
    10 Posts Name Dropper
    Forumite
    Borrowing £63821.56 for 13 years and 3 months at 3.54% gives you a monthly payment of £503.44.

    I would guess that the "next payment due" is maybe a few quid lower because your new deal starts 4 days into the month, and so is calculated to cover 4 days interest at 1.79% and the rest on the 3.54%, to give a slightly lower payment required than normal. And after next month, I'd guess your payments would be £503.44.


  • annabanana82annabanana82 Forumite
    2.5K Posts
    Seventh Anniversary 1,000 Posts Name Dropper
    Forumite
    gih said:
    Borrowing £63821.56 for 13 years and 3 months at 3.54% gives you a monthly payment of £503.44.

    I would guess that the "next payment due" is maybe a few quid lower because your new deal starts 4 days into the month, and so is calculated to cover 4 days interest at 1.79% and the rest on the 3.54%, to give a slightly lower payment required than normal. And after next month, I'd guess your payments would be £503.44.


    Thank you, that makes much more sense. I'm really bad with maths so like to try and understand what I can in the vain hope it may one day click
    Make £2023 in 2023 (#36) £858.66/£2023
Sign In or Register to comment.
Latest MSE News and Guides

Did you know there's an MSE app?

It's free & available on iOS & Android

MSE App

Regifting: good idea or not?

Add your two cents to the discussion

MSE Forum

Energy Price Guarantee calculator

How much you'll likely pay from April

MSE Tools