How is mortgage monthly repayment calculated

C

conso

Guest
I am in the process of changing mortgage provider. Although the Rate and tracker offered by the new provider
looks much better than the current mortgage provider, the amount to pay per month is higher.
Any ideas on why this is the case ? It's a like for like transfer.
The current Rate is 4.85% on 220K over 22 years(original term was 25) = 1200pm
New rate 4.28% on 220k over 22 years = 1287pm
 
The 4.28% on 220K over 22 years is correct at €1287 a month.
However 4.85% on 220K over 22 years should be €1357. Are you sure the figure of €1200 doesn't include mortgage relief?
 
Thanks Joe,
No the 1200 does not include TRS. The TRS is credited to my current account on the same day that the 1200 is debited from my current account.
:confused:
 
Surely its to do with the term? The original was based over 25 years (doesn't matter that this is now 22). The new mortgage term is 22 years so capital repayments are higher?
 
liteweight said:
Surely its to do with the term? The original was based over 25 years (doesn't matter that this is now 22). The new mortgage term is 22 years so capital repayments are higher?
Click to expand...

Liteweight is right, assuming you original mortgage was taken out for 220k and you are still borrowing 220k 3 years later?
 
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