Hello,

How do I calculate the Capital Repayment bit of a repayment mortgage?

I am fine on the inteste bit but stuck on the bit that pays of the capital?

Any help from Estate Agents, IFA, Bankers of Children with GCSE Maths would be appreciated!!!!

Thanks
Dave.

 

 

Thought I'd better try since all these IT whizzos left you for 7 hours without an answer! And we all know they spend ALL day on Scoobynet - must have been too busy comparing the diameters of their downpipes to their.... ahhm... high bandwidth internet links.

 

A quick (and rough) way is to find out the APR and use the following formula:

'Monthly repayment' = (('no of years' * 'Amount borrowed' * APR / 2400) + 'Amount borrowed') / 'no of years'

Take 100,000 at 8% over 25 years. The monthly payment will be roughly £667 and you'll pay back £200,000 (£667*25*12)!

This is when using the annual interest calculation. It is much better to get a mortgage with a daily interest calculation as it will cost you less or you can pay the same over fewer years.

Kevin.

 

Thanks chaps!

I should have looked on the net, seing as how I spend my life there....

Cheers,

Dave