My mortgage, can anyone help me understand

Gorgeous_George

I calculate that (at 7.15%) your payments will be £676.50 from Sep 08.

GG

dolly74_2

Thanks for that. Just for curiousity, at the risk of seeming dim here. How did you come to that calculation? That way if their svr changes, i can do the maths myself.

Gorgeous_George

At post # 10 you said the mortgage was for £96,000 and you are on a 3 year fix at 5.29%. I assumed it was a 25 year deal.

My calculator says your payments should be £577.55 for the first three years and after 3 years the balance outstanding is £89,993. Now, repaying £89,993 over the remaining 22 years T 7.15% will cost £677.36

However, you also said that your repayment was changing marginally to £576.79 so I applied this payment into the calculator. As the payments are lower than before, it is likely that you have paid slightly more than necessary and reduced the amount outstanding to £89,876. Repaying this over 22 years will cost £676.48.

Hope that helps!

GG

UK007BullDog

GG has a calculation sheet. He offered it to everyone here. Click on his name and check for a post with calculator in the heading.

dolly74_2

thanks to everyone who has posted me. It will really help with my budget come September.