I need help with mortgage calculation

Vicki_Y

Can anyone please tell me if this is correct?

I am currently on a YBS mortgage fixed at 3.29% and pay £632.51 per month.

As of 1st October my mortgage rate changes to 3.99% which apparently works out at £702.71 per month.

Is my new monthly payment correct? It sounds like quite a bit increase and I'm not sure what calculation to use to make sure its correct (although I'm sure it is, but I just want to check).

Thanks

Vicki Y

payless

would need to know
1. How much outstanding
2. Remaining term
3. All on repayment basis?

Vicki_Y

Amount outstanding: £117,542.86
Remaining term: 23 years (groan)
and its a repayment mortgage.

Thanks
Vicki

YorkshireBoy

http://www.whatsthecost.com/mortgage.aspx gives the following summary, based on 3.99%...

"The bottom line, is that this repayment mortgage for £117,542.00, over 23 years, will cost you £651.43 a month."

Not sure if APR and your actual interest rate payable are one and the same though? Maybe this is where the error is?

payless

yep 3.99% rate should mean £651.43 ( assuming daily calc)

obviously reasosn could be

1. rate, term or amount incorrectly quoted ( amount - are they adding a fee- alhough this would not make such a big difference)

2. Payment quoted includes additional insurances

Joe_Bloggs

With the £702 amount it seems that you are being charged 4.77% for 23 years .
J_B.

Vicki_Y

Thanks people - that sounds more like it! I've been on the phone to YBS and have now, hopefully, sorted this out.

Thanks again

Vicki Y

YorkshireBoy

Vicki_Y wrote:

I've been on the phone to YBS and have now, hopefully, sorted this out.

What was the reason for the discrepancy?

Vicki_Y

Basically my old mortgage deal ends on 30 Sept and their 'screen's won't update with my new montly payment until 1st October. At the moment, their system presumes I'll be going on to their basic rate when my deal ends - which would be £702. I need to phone back on 1st October to confirm my new monthly payment will in fact be £651.

However (if you're still reading this and haven't fallen asleep by now!), they will be taking £702 in October as 'their system won't have time to update to the new amount before the DD is taken out of my account'. This will be balanced out in my November payment when I will pay the £651 minus the extra they took in October.

Vicki Y

payless

I wonder , as current payment does not seem to add up quite right on the existing rate either , ( are you sure they aren't including some insurances in those figures)


and anyhow on their basic rate it would be higher than £702

( however I'm making certain assumptions as to your original mortgage size/ term)

worth a second check

Vicki_Y

That's interesting. I will point this out to them when I call back on 1st October and double check on that.

Thanks again

Vicki Y