The Ultimate Mortgage Calculator discussion

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  • CWG1
    CWG1 Posts: 1 Newbie
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    Recently developed a spreadsheet which calculates by month and throughout the term of the repayment mortgage the savings made due to my overpayments and the reduction in length of the mortgage. This allows for monthly or adhoc overpayments and all months throughout the term of the mortgage are detailed so monthly and cumulative savings can be seen. i find this especially useful as i only receive annual statements. Wondered if MSE or anyone can advise where i can go with this?
  • J74
    J74 Posts: 5 Forumite
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    Hello.

    I would like to know how to use the mortgage calculator that includes the deposit I have saved? This means I should know how much I can borrow and how much the repayments are.

    Thank you.

    J
  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    Once you've worked out how much you can borrow, you simply add to that the amount you wish to put down as a deposit and the total then becomes your maximum purchase price.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • J74
    J74 Posts: 5 Forumite
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    Thank you. I have done that already.
  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    J74 wrote: »
    Thank you. I have done that already.
    Could you clarify what you need then? I'm not sure what you're asking for in your earlier post.

    Ta
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • J74
    J74 Posts: 5 Forumite
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    I was just saying thank you for answering my question.
  • J74
    J74 Posts: 5 Forumite
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    I do have anothe question.
    Please can you tell me what are prons/cons in getting an independent mortgage/adivser broker or going to bank?
    I'm the first time buyer and will need a good adviser to guide me through the process of buying.
    If I do get an independent broker where do I start and where to find one?

    Thank you.

    J
  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    A bank or building society will only give you information on its own products. A broker will give information on products which pay commission to him (whole market) or if you agree to pay a fee for advice, direct to lender products (independent). In the latter case, if you employ a broker on an independent basis, any commission paid is used to subsidise the fee you agreed to pay.

    If you are simply a rate-chaser, you may be better off combining the use of comparison sites and lender websites to establish the best deals, then try a broker to see if they can come up with anything different.

    If you need real help getting a mortgage, because of income, credit, property or other issues, a broker should be your first port of call.

    Ask friends and family for a recommendation. Failing that, try https://www.unbiased.co.uk, switching off the "sponsored ads only" option so you get a full list for your area.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • RedMonty
    RedMonty Posts: 123 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    edited 10 January 2013 at 8:25PM
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    FAULT REPORT

    I'm trying to work out if I should go for an offset remortgage, & your calculator isn't helping much.

    There seems to be a fault in the maths of the Offset Mortgage calculator, as well as several unclear aspects in the headings.

    Data used: Mortgage £100,000, term 25yrs, interest 5% for both normal and offset, fee £0 for both, savings £20,000, savings interest 3%, Basic taxpayer, saving £200/month.

    Fault: Monthly repayments in both 'normal' and 'offset' is shown as £585/month. The Offset mortgage repayment would actually be based on £100k-(£20k of offsetting savings) = 80k mortgage balance. So the monthly repayments should be a fair bit lower for the Offset mortgage.

    Should be around £467 not the £585 shown.

    Carrying on from this, the Offset mortgage payer should be able to put away more than £300/month into the savings account (used for offsetting) as they have lower monthly repayments than the 'normal' repayer.

    Also for the offset mortgage, these monthly repayments decline through the term - as opposed to the fixed payments of the 'normal' mortgage, so every month, the offset repayer is able to put even more into the offsetting savings account.

    Is this included in the maths at all?

    Also re presentation of the figures - some numbers are shown in red boxes, and some are shown in blue boxes. This seems to have no link to whether they are savings or losses or anything at all.

    Finally, 'Amount left in savings' - I don't understand what this means.

    Hope this feedback helps to improve this tool.

    RedMonty
  • Bob_Bobson_2
    Bob_Bobson_2 Posts: 1 Newbie
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    How does the mortgage calculator actually work? I have created a spreadsheet that ought to do the exact same thing, but all of my monthly payments come out to be nearly double what they should be!

    The formula I am using is:

    ((Annual interest rate^Years left on mortgage)*Initial loan)/(Years left on mortgage*12)

    So for a mortgage of 100,000 over 20 years at a rate of 5%:

    (1.05^20)*100,000/(20*12)

    The monthly repayment though comes out at £1106, which is clearly not right. I'm guessing I'm not accounting for the interest paid off during the mortgage period, but I have no idea what the formula would be to factor that in. Can anyone help?
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