Mortgage Calculation

[danIT]

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.

[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!!

[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.

[NotSoFast]

I've found this useful in the past...

MortgageOverpayments - blank.xls

[danIT]

Thanks NotSoFast, or anyone else, could you explain the Recalculation Threshold?

[somabc]

Never mind that where can I buy a house for £55,000

[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.

 

That spreadsheet is really useful!

[somabc]

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.

 

That spreadsheet is really useful!

 

Interesting and train from B'ham to London 1 and a half hours? Thats quicker than most of South London

[NotSoFast]

Glad it's of use. I think the recalculation threshold is the amount you have to overpay before the bank recalculates your minimum monthly payment...

 

The comment in the file says:

Enter the Recalculation Threshold for your mortgage here. This is the minimum overpayment you need to make before the monthly Minimum Payment is recalculated for your mortgage. If your mortgage conditions do not allow for your Minimum Payment to be recalculated, then enter a very large value here, for example 999999.

 

Simon

Edited September 10, 2009 by NotSoFast