Mortgage repayment - different costs

strawb_shortcake

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 

gih

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.

strawb_shortcake

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