How to calculate the repayments on an UB or BoI mover tracker

How to calculate the revised repayments on an Ulster Bank or Bank of Ireland mortgage.

Let's say I have an Ulster Bank mortgage of €200k @1% over 20 years. How much will the repayments increase by if I move the tracker to a new home? The rate will increase to,say, 2% for 5 years, after which it will move to a SVR of 5%

My repayments at the moment are €920 per month.

Karl Jeacle's Mortgage Calculator allows you to do this.

Scroll down to Fixed loan data
Enter Principal : €200k
Enter interest %: 2
Enter years: 20

This will show the payment of 1011.77

Then click on Interest and the "Expenses" field will change to "Interest rates"
Under interest % #1 , put in 5%
Under Start month, put in 61 ( 5 years at 12 months = 60)
Under end month, put in 240 ( 20 years at 12 months = 240)

Click on Payments Table. This will show you the payments for 2014.
Slide over to 2019 and you will see that in March 2014, your repayment will rise to €1,243







Additional interest - which is the real cost in the early years

First 5 years - 1% of €200,000 = €2,000 a year or €166 per month

From year 6 on - a further 3% of €157,000 = €4,710 per year or a further €400 per month - in the initial years

But it won't be €400 a month for the full 15 years. As I pay off the capital, the difference will be much smaller. But as the monthly repayment is fixed, the €200 extra is fixed for the life of the mortgage (assuming interest rates don't change)

Thanks Brendan. I would have thought the repayments would have been higher. I had a look for our own situation and it definitely makes the deal more palatable.

Hi pippa

Thank you. It was your question on the other thread that prompted me to look for calculators. Then I couldn't find your question to reply to it.

I am very surprised at the figures myself. I thought it would be much more expensive.

Brendan

I had heard previously that on a tracker for a mortgage of 300k, over the lifetime you could save up to 150k when comparing to SVR.

Possibly when I heard those figures it had been computed over a longer lifetime e.g. 30-35 years and estimated higher average SVR.

For us, it is definitely worth paying attention to such variables when figuring out our potential costs.

Thanks for your detailed response, I really appreciate it.
Pippa