Mortgage Total Amount Repayable

J

Jolly Man

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Got my letter of offer for mortgage, and set out in the principal details of the loan is the amount requested €308,000 its at an intrest rate of 5% variable and the total amount repayable is €656.027.64 how is that sum calculated?
 
So the total amount we will actually be paying back assuming rates stay the same is in the region of €348k?
 
No - the total amount that you will pay back is the original €308K borrowed plus another c. €348K in interest giving a total of €656K. Note that the total interest bill will actually be slightly lower due to owner occupier mortgage interest relief.

Plug the loan amount, term and rate into Karl Jeacle's mortgage calculator to get an idea of how the total figure is arrived at. From plugging the amount and rate in and working back from the total cost of the mortgage I am guessing that you are on a 35 year term?
 
that explains it alright thanks clubman yes it is a 35 year term, scary sort of figures though!
 
Bear in mind that due to inflation, €1,000 would be worth less in 30 years time than it is today.
 
Yes - Karl Jeacle's mortgage calculator also allows you to estimate the real cost of the mortgage by specifying an assumed annual inflation rate.
 
you usually can increase your repayments or lodge once off lump sums which will have the effect of reducing your interest bill.
 
Yes it actually helped relax me a bit when i tried out the calculator that clubman recommended if we pay €100 each a month extra will save €75k and 8 years on the life of the mortgage.
 
If you can afford higher repayments then why not choose a shorter term from the outset and thereby also reduce your mortgage protection life assurance premiums?
 
just calculated that out too makes since now, wish i had posted this sooner could i change the term now? Got final grant on Monday currently with the solicitor. I had taught of starting paying extra in the third year or so but i would think we would cope with the 30 year term! Income of €70k between us 1 car loan €10k???
 
I don't know how the lenders differ but BOI/ICS let you shorten your term at any stage OR make higher repayments (which is in effect the same thing - but leaves your term as it is in case you ever need the leeway). See how flexible your lender is on it.
I'm not sure how flexible life policies are.
 
If the mortgage has not yet been drawn down then you may still have time to change. Some lenders will make this easier than others - e.g. some will insist that you apply from scracth while others may amend the existing approval.
 
As previous poster says, just drawdown on agreed term and then ask to change. If you are on variable or tracker rate there will be no problem.
 
That's not what I said. I would be more inclined to change the term in advance of drawdown to ensure that I was only taking mortgage protection life assurance for the shorter term. But maybe both can be changed after the fact?
 
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