# Mortgage Calculation

• 9th September 2009, 04:03 PM
danIT
Mortgage Calculation
Im just in the process of getting my first ever mortgage and wondering if anyone can help with the maths lol

Ok here goes with the numbers:

Borrowing £55,900
25 Year period
Fixed for 3 years
Interest rate: 6.5%

Paying: £377.00 per month

£13,572 paid in 3 years

How much of that 13K is interest and capital?

Basically I can over pay by 10% each year without charge, looking to go high years but top up each year by 10% ish.

So wanted to work out the options in over paying. E.g. By overpaying each year by 5% I'll knock X amount of years off my mortage.
• 9th September 2009, 04:07 PM
Jamo
A lot depends on your mortgage deal, remembering at the moment the variable rate is very low meaning that if you go for a variable mortgage now, you could be paying somewhat larger bills in a few yrs if the interest rate was to shoot up. I found this quite helpful as I am in exactly the same situation at the moment.

BBC - Homes - Property - Mortgage calculator

Gives you an idea of repayment etc

Mmm doesn't give what you want though! Damn!! I have found the mortgage calculations really confusing when it comes down to it!!
• 9th September 2009, 04:12 PM
danIT
So results of that were:

Monthly repayment: £375.74
(Interest only): £297.91

So therefore im paying: £78.00 per month off the capital? Roughly £2800 over 3 years.
• 9th September 2009, 04:27 PM
NotSoFast
I've found this useful in the past...
• 9th September 2009, 04:37 PM
danIT
Thanks NotSoFast, or anyone else, could you explain the Recalculation Threshold?
• 9th September 2009, 04:43 PM
somabc
Never mind that where can I buy a house for £55,000 :confused:
• 9th September 2009, 04:53 PM
danIT
Hahaha! Luck of the drawer, it is a flat.

Just the way of the market, flat in same block sold last September for 95K, and another in 2007 for 85K, but the one im buying was valued at 65k 2 weeks ago, putting 15% deposit down = 55k

Its also in Brum not London.

• 9th September 2009, 04:55 PM
somabc
Quote:

Originally Posted by danIT
Hahaha! Luck of the drawer, it is a flat.

Just the way of the market, flat in same block sold last September for 95K, and another in 2007 for 85K, but the one im buying was valued at 65k 2 weeks ago, putting 15% deposit down = 55k

Its also in Brum not London.