dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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We do it the other way round atm
GF pays rent, CT and fuels/taxes the car
I pay bills, food, car insurance
But then im still at uni so couldnt afford £450 a month in rent 
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
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quote:
Originally posted by pow
quote:
Originally posted by LiVe LeE
no; all my insurance is seperate
borrowing 144k on 6.64APR would be £796.80 per month so makes more sense but when does the repayment kick in
That over 25 years is £511.87 a month?!?
Wheres the extra £275 a month coming from?
£144,000 * 6.6% = £9504 Annual Interest
£9504/12 = £792 per calander month.
This is where it gets complicated; with a fixed rate and interest free, you would pay that amount of interest per month and nothing off the capital for as long as the agreement term wether it be 3, 5 or 10 years etc
However, with a repayment mortgage, you would pre-arrange a monthly payment, in my case, I'm paying £719.00 per month, of that approximately £554.58 is Interest payments (based on my fixed rate of 6.05%); so the remaining £164.42 a month comes off the capital. The complicated part is that as the capital reduces the amount of interest paid also reduces (assuming (which isn't reality) the same fixed rate, term and monthly payment) so over the term of the mortgage, the amount of interest paid reduces in comparison to the amount of capital paid off to the point where your monthly repayment is almost entirely captal repayment by the end of the mortgage and the physical level of interest (whilst still at 6.05% APR) is much lower; as the interest is calculated on the remaining capital. 
[Edited on 11-02-2009 by LiVe LeE]
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
User status: Offline
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Oh I'm a fucking idiot.
The interest is charged annually not over the whole 25 years 
Sorry chaps :shy:
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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tbh pow, I didn't really have a clue. Only that I'm a long way off getting a mortgage in the first place
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Robbo
Member
Registered: 6th Aug 02
Location: London
User status: Offline
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pow you thick badger
look up compound interest
live_lee has it pretty much set out there tho
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whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
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TBH I am suprised yuor being offered a mortgage with 10% deposit
I have just come out of a fixed term and there projected house price now suggest I have a mortgage worth more than 85% of its value and thsu will not offer a fixed term
I have therefore dropped onto the tracker which currently sits at 3% (2% above base rate)
So in essence I have cut my interest rate by 2%
In my opinion you will need to be very careful as borrowing 170k plus at this time is dangerous as rates are so low - only takes a 1% increase and youare looking at £150 increase a month
If your maxed out now you have no chnace as rates will only go up
No expert by any means but be careful and any mortgage advisor who is good should be telling you not to max out at present on repayments
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James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
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The only mortgages available at the moment are fixed so how is an interest rate increase going to affect me?
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Aaron
Member
Registered: 9th Aug 04
Location: Cottingham, East Riding
User status: Offline
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quote:
Originally posted by James
The only mortgages available at the moment are fixed so how is an interest rate increase going to affect me?
What sort of rates are you being offered at the moment on a fixed rate mortgate?
I've got to get a new mortgage in September and i'm interested to know
[Edited on 12-02-2009 by Aaron]
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
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Fixed rate wont affect the monthly payments for the term of the fixed rate (but check the small print) Trackers/variables follow the movements of the BoE interest rates.
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whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
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quote:
Originally posted by James
The only mortgages available at the moment are fixed so how is an interest rate increase going to affect me?
well if you get at fixed rate at say 4%
by the time you come out that its going to be higher than that
They will not stay at 1% for long
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James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
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quote:
Originally posted by whitter45
quote:
Originally posted by James
The only mortgages available at the moment are fixed so how is an interest rate increase going to affect me?
well if you get at fixed rate at say 4%
by the time you come out that its going to be higher than that
They will not stay at 1% for long
Yeh but I am looking at mortgages that are fixed for 5 years.
I'd like to think i'll be on considerably more money in 5 years TBH.
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whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
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quote:
Originally posted by James
quote:
Originally posted by whitter45
quote:
Originally posted by James
The only mortgages available at the moment are fixed so how is an interest rate increase going to affect me?
well if you get at fixed rate at say 4%
by the time you come out that its going to be higher than that
They will not stay at 1% for long
Yeh but I am looking at mortgages that are fixed for 5 years.
I'd like to think i'll be on considerably more money in 5 years TBH.
can you get 5 year fixed at the moment
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James
Member
Registered: 1st Jun 02
Location: Surrey
User status: Offline
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Yep.
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