We're aware that some users are experiencing technical issues which the team are working to resolve. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Mortgage repayment - different costs

Options
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) £3479.30/£2023

Make £2024 in 2024...

Comments

  • gih
    gih Posts: 53 Forumite
    Second Anniversary 10 Posts Name Dropper
    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.


  • 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) £3479.30/£2023

    Make £2024 in 2024...
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.7K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.4K Spending & Discounts
  • 243.7K Work, Benefits & Business
  • 598.4K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 256.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.