bob r

iTrader: (46)

what would the repayments be on a 130k repayment mortgage over 25 yrs.

i would ring a mortgage co but cant be arsed with the 30 minute call.

MattW

£5000 per month

You tell me your interest rate and I'll tell you mine

LG John

Just use an online calculator

Chris L

Straight repayment - you'd be looking at around £850 - £900, dependng on the rate deal.

davegtt

Lets say at 5% and your paying £770

Ayde

iTrader: (6)

Cheap loans | mortgages | credit cards | home & car insurance - moneysupermarket UK saves alot of hassle

WR1 Ant

On a tracker my new 22 year £176700 mortgage is £1050 per month so I would guess approx £750 ish over 25 years.

Fat Boy

Quick rough guide is as follows:

Divide the amount in half i.e. £130k / 2 = £65,000 ( = average balance over life of mortgage)
Multiply by the int rate - say 5%- £65,000X 5% = £3,250.
Multiply that by number of years i.e. 25 X £3250 = £81,250 - that's roughly the interest you will pay over the life of the mortgage.
Add that back to the original mortage amount i.e. £130K + £81.25K=£211.25K - that's the total you will repay.
Divide by no of years i.e. 25 = £8.45K p.a. or by no of repayments - 25 years X 12 monthly repayments = 300repayments (£211.25K/300) = £704.17 per month).

HTH

Robin Mullan

Jesus man. Im guessing that your a mortgage or financial advisor.

john banks

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

slagmagnet69

What's going on here then - you wanna buy my house dont you?


mortgageinprinciple.com - Home

Mortgage calc - click on top/centre of page.



HTH

davegtt

Or ignore it all together and read my post further up

https://www.scoobynet.com/6241344-post5.html

bob r

iTrader: (46)

cheers G.

jonc

Have you tried Picture Loans, I think their ads have been well received on this forum!

stevebennett

Easy rough Calculator for repayments is

130k x 2

= 260k

monthly repayment of

260k \ 300 - 300 number of months of repayments

=£866 as a ball park estimate.

You should also consider if you can be strict with your cash work out the investment income v the cost of an interest only repayment mortgage.

For instance you could with repayment being around £800 this is approx split £550 interst and £250 repayment. If you interest rate is discounted of %4.95for a fixed period of 5 years consider how much interest you could make on a 6.5% interst savigs account over the same period.

I have done the same calculations and found that over a 5 year period on our mortgage we could benifit from an extra £5000. so we would then pool all of this cash at the time if required to pay a lump sum off our portgage if the interest rates were not in our favour if they were we would then carry on investing the money.

Steve

Its a long hard calculation i can offer assistance.

john banks

I wouldn't have bothered posting if the previous estimates weren't hugely misleading, yours excepted There are too many "very" rough guides in this thread from people that don't seem to understand compound interest and how to use a simple power equation to calculate it quickly and accurately.

Although the guy maybe only wanted the actual figure, if you give him the tool to do what-if analysis with different amounts, terms and interest rates then he might be better informed?

SPEN555

Just go onto

Cheap loans | mortgages | credit cards | home & car insurance - moneysupermarket UK

key it in as per instructions and it will calculate it for you.

john banks

How rough are you wanting to be Steve?

If the interest rate is 4% or 8% the total amount payable over 25 years is 158 to 231% of the original amount. It is only near to double if the interest rate is 6.4%.

It is indeed easier to use an on line calculator, certainly than relying on the ridiculously inaccurate rules of thumb being posted in this thread.

stevebennett

True but if you are looking around houses it proves as a good estimate and guide for when an estate agent is bullsh1tting. If you have time use the BBc mortgage calculator

BBC - Homes - Property - Mortgage calculator

Some other sites offer a lifestyle calculator to show you what monthly amount you can afford and then work out you max mortgage based on your current commitments.

john banks

I was wondering about this. I'm looking for a savings account to move house proceeds to whilst I rent for a while. The best I've found that is available for a year, with sensible min/max amounts, with no fee or interest penalties for early withdrawal is 5.25%, but net this is only 3.15%, which is similar to premium bond payout rates. I can't find anything that gets anywhere near to 5% net or tax free. NS&I fixed or index linked certificates are of poor value or penalise you for early withdrawal, gilts, bonds and moneymarket stuff is either unattractive on rates or taxed. The only alternative seems to be to use a stocks and shares unit trust and use capital gains tax allowances, but that puts the capital at the mercy of the markets. Have you come across anything better for a savings return?

TopBanana

Interest rates are effectively zero when you take into account inflation

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...

Tidgy

100k was £550 odd a month when i looked so work it out from that

bear in mind it varies from comapny to company and person to person

briforbes

Using Alliance & Leicester's 2 year tracker deal as an example, at a rate of 4.39%....

130k over 25 years would cost you £714.49 for the first two years, after which you would remortgage, without penalty, to a better deal.

davegtt

Good point Nat, although Im not sure I see a 1.5% rise in the next 2 years. Not that it can't happen and not that there wont be any rises at all, still a fair point to make

jaytc2003

iTrader: (1)

I am going to be paying approx £920 per month on a 150k over 25 years. I dont know what the interest rate is but I know that is the approx figure (give or take a few pounds) this has been sorted out within the last week so is fairly upto date. This is with GE money

MattN

just use PMT function in excel