Calculating a repayment mortgage ?

[Adam T]

Guys,

I may be being a bit of a numpty, but can anyone tell me how to easily calculate what a repayment mortgage will cost me, i am just trying to play with numbers for a possible house purchase, and am trying to compare products!

I will say that I have already been to see a advisor but just wanted to know.

Thanks

P.s - any infor on 90%+ LTV fixed mortgages would be appreciated...

Cheers

[SS2.]

Adam T said:

I may be being a bit of a numpty, but can anyone tell me how to easily calculate what a repayment mortgage will cost me,

An online calculator ?

[Adam T]

Cheers SS2, just what I needed!

Hours of fun now...

[kryten]

You can actually do it easily in EXCEL.

To find the interest payment use:

IPMT(INTRATE/12,month,total duration-month,amount)

eg for a 20 year mortgage at 1.5%, the first payment would be:

IPMT(1.5%/12,1,240-1,100000)

To find the capital repayment:

PPMT(INTRATE/12,month,total duration-month,amount)

They you just change the <month> bit for which month you want to see the payment.

[Adam T]

kryten said:

You can actually do it easily in EXCEL.

To find the interest payment use:

IPMT(INTRATE/12,month,total duration-month,amount)

eg for a 20 year mortgage at 1.5%, the first payment would be:

IPMT(1.5%/12,1,240-1,100000)

To find the capital repayment:

PPMT(INTRATE/12,month,total duration-month,amount)

They you just change the <month> bit for which month you want to see the payment.

Kryten,

now that is more like it!!

Where does the "-1" come from, the 240 is the months.

[scotal]

Adam T said:

P.s - any infor on 90%+ LTV fixed mortgages would be appreciated...

Errr Ouch thats going to smart a bit, would be my first thought.
Is it a new build? If so you could have trouble getting the finance in place.

[Adam T]

haworthlloyd1 said:

adam im sure you are already aware but please do bear the following in mind

interest rates can increase significantly (they are at historic lows for hundreds of years) so they could easily TREBLE if not QUADRUPLE or even more in the next few years.

also at 90% LTV people are factoring in up to 25% falls this year and possibly into 2010 and beyond.

Therefore, just be careful as you could go into negative equity and see your mortgage payment at least double.

If you are aware of all of this and have thought about the worst case scenario good luck!
argh i have done it again - i thought you were a young FTB!

Edited by haworthlloyd1 on Tuesday 3rd February 11:15

I am just weighing up LTV %'s Vs. rates available, and fixed periods.

I would certainly be aiming for a fixed rate for my personal residence!!

Thanks for the assistance.

[scotal]

Adam T said:

I am just weighing up LTV %'s Vs. rates available, and fixed periods.

<60% is where the best rates are.
Then 60-75%
Then 85% (there are some 80% loans in the mix as well.)

90% is a pretty rarified market at the moment.

The lenders are "pricing their risk accordingly."

[kryten]

Adam T said:

kryten said:

Where does the "-1" come from, the 240 is the months.

1,240-1 gives you the term remaining is the month you're looking for.

So the first month is 1 and there are 239 remaining.

For month 2 you end up with 238 remaining etc etc