130 k mortgage
11 October 2006, 02:18 PM
#31
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Originally Posted by Fat Boy
Getting a bit **** there, Dr Banks - My rough guide is just that a rough guide, but strangely it works out to within 40 quid or so of the real cost calculated correctly. 
Oh and I do understand how to calculate loan and interest repayments correctly after over 25 years in the finance industry, but felt that it would be complete overkill for the original poster who clearly isn't up to speed in this area...
Oh and I do understand how to calculate loan and interest repayments correctly after over 25 years in the finance industry, but felt that it would be complete overkill for the original poster who clearly isn't up to speed in this area...
I'm glad you think that a 7% error is minor. I wonder why I don't trust much of the financial services industry if when they quote something incorrect that it then doesn't matter?
Anyone thinking that 1.5% increase in interest rates over the next two years is a worst case needs to look at a few historical charts. Even in relatively benign times it can easily do that per year. Try quadruple that rise in two years to really call it worst case rather than wishful thinking. Some believe that it is only the low rates that are stopping the whole house of cards coming down. I'm bearish because I'm just waiting to make my next move when it does, but I may well be wrong
11 October 2006, 07:11 PM
#32
oooh, get her
If the original poster can't work out how to calculate it himself in the first place, or how to google an answer, and has to rely on the SN Brains Trust 
then the simplest method, albeit a rather crude one, is probably the most appropriate - you've got to know your audience...
Strangely, I've never got a fee calculation wrong when it really matters so far.
Anyway each to their own...
then the simplest method, albeit a rather crude one, is probably the most appropriate - you've got to know your audience...Strangely, I've never got a fee calculation wrong when it really matters so far.
Anyway each to their own...
11 October 2006, 07:57 PM
#34
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Originally Posted by john banks
If ****=correct then rough=incorrect
I'm glad you think that a 7% error is minor. I wonder why I don't trust much of the financial services industry if when they quote something incorrect that it then doesn't matter?
Anyone thinking that 1.5% increase in interest rates over the next two years is a worst case needs to look at a few historical charts. Even in relatively benign times it can easily do that per year. Try quadruple that rise in two years to really call it worst case rather than wishful thinking. Some believe that it is only the low rates that are stopping the whole house of cards coming down. I'm bearish because I'm just waiting to make my next move when it does, but I may well be wrong
I'm glad you think that a 7% error is minor. I wonder why I don't trust much of the financial services industry if when they quote something incorrect that it then doesn't matter?
Anyone thinking that 1.5% increase in interest rates over the next two years is a worst case needs to look at a few historical charts. Even in relatively benign times it can easily do that per year. Try quadruple that rise in two years to really call it worst case rather than wishful thinking. Some believe that it is only the low rates that are stopping the whole house of cards coming down. I'm bearish because I'm just waiting to make my next move when it does, but I may well be wrong
11 September 2008, 08:03 PM
#36
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Neither the mean or median balance over the life of the mortgage will be half the loan value unless you pay 0% interest.
The correct calculation is:
i=interest rate%/1200 = 5/1200=0.004167 (1200 to convert to fraction and from annual to monthly)
x=(1+i)^300=1.004167^300=3.482 (300 being the number of months in 25 years)
Payment=i*loan*x/(x-1)=0.004167*130000*3.482/2.482=£760
Or if you didn't pay attention in maths, use an internet calculator
The correct calculation is:
i=interest rate%/1200 = 5/1200=0.004167 (1200 to convert to fraction and from annual to monthly)
x=(1+i)^300=1.004167^300=3.482 (300 being the number of months in 25 years)
Payment=i*loan*x/(x-1)=0.004167*130000*3.482/2.482=£760
Or if you didn't pay attention in maths, use an internet calculator
Are these the sort of equations the LHC is hoping to find answers to?
11 September 2008, 11:52 PM
#41
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Neither the mean or median balance over the life of the mortgage will be half the loan value unless you pay 0% interest.
The correct calculation is:
i=interest rate%/1200 = 5/1200=0.004167 (1200 to convert to fraction and from annual to monthly)
x=(1+i)^300=1.004167^300=3.482 (300 being the number of months in 25 years)
Payment=i*loan*x/(x-1)=0.004167*130000*3.482/2.482=£760
Or if you didn't pay attention in maths, use an internet calculator
The correct calculation is:
i=interest rate%/1200 = 5/1200=0.004167 (1200 to convert to fraction and from annual to monthly)
x=(1+i)^300=1.004167^300=3.482 (300 being the number of months in 25 years)
Payment=i*loan*x/(x-1)=0.004167*130000*3.482/2.482=£760
Or if you didn't pay attention in maths, use an internet calculator
John - I am looking for a new laptop. I don't suppose you fancy the job
Last edited by fast bloke; 12 September 2008 at 07:37 AM.
12 September 2008, 09:05 AM
#45
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Better answer would be go to an IFA and see what mortgages YOU can actually qualify for, and what the repayments are on those.
Dont assume that the low interest rates you see lenders advertising are available to everyone - in many cases they are only for people who are remortgaging as the lenders offer the low rates to try and tempt people who already have mortgages away from their current lender. If you are a FTB then you may find the interest rates and arrangement fees suddenly shoot up.
Also depends on your employment - I'm self employed, and despite earning more than most people who work for other people, it still cut out a lot of lenders that I could borrow from.
Dont assume that the low interest rates you see lenders advertising are available to everyone - in many cases they are only for people who are remortgaging as the lenders offer the low rates to try and tempt people who already have mortgages away from their current lender. If you are a FTB then you may find the interest rates and arrangement fees suddenly shoot up.
Also depends on your employment - I'm self employed, and despite earning more than most people who work for other people, it still cut out a lot of lenders that I could borrow from.
12 September 2008, 09:20 AM
#46
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Better answer would be go to an IFA and see what mortgages YOU can actually qualify for, and what the repayments are on those.
Dont assume that the low interest rates you see lenders advertising are available to everyone - in many cases they are only for people who are remortgaging as the lenders offer the low rates to try and tempt people who already have mortgages away from their current lender. If you are a FTB then you may find the interest rates and arrangement fees suddenly shoot up.
Also depends on your employment - I'm self employed, and despite earning more than most people who work for other people, it still cut out a lot of lenders that I could borrow from.
Dont assume that the low interest rates you see lenders advertising are available to everyone - in many cases they are only for people who are remortgaging as the lenders offer the low rates to try and tempt people who already have mortgages away from their current lender. If you are a FTB then you may find the interest rates and arrangement fees suddenly shoot up.
Also depends on your employment - I'm self employed, and despite earning more than most people who work for other people, it still cut out a lot of lenders that I could borrow from.
12 September 2008, 09:46 AM
#48
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2006.Happy Days
2007 Moved house with 25% /£50,000 down deposit
2008 All my equity has gone without me doing anything I mean 
Oh well.House is worth same as the mortgage now but I treat the deposit as never being 'real' money anyway
2007 Moved house with 25% /£50,000 down deposit
2008 All my equity has gone without me doing anything
I mean Oh well.House is worth same as the mortgage now but I treat the deposit as never being 'real' money anyway
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