Trackscandal
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To calculate how much the cash payment will be you need to know what interest you paid on the €12,000 since July 2011.
You will need to know the actual interest rate - this will vary from person to person , depending on your Loan to Value and whether you fixed or not.
If will also depend on when your fixed rate ended. If it finished in October 2008, you will be getting 12 years' interest. If it finished in 2012, you will be getting 8 years interest so it will be less.
If you have all this information, you can work it out exactly, but if you don't, you can use 4% as a very rough estimate.
Here is a typical case for the guy whose €100k mortgage came off a fixed rate in July 2011 and has been on the SVR since. For simplicity , I have used the average SVR for each year.
View attachment 4465
So he paid €4,314 interest on the €12,000 write down.
His mortgage was €100k, so that works out at 4.3% of the balance.
Brendan
Another method of calculating the cash payment is add up the interest you were charged from the date you exited the fixed rate and multiply this by 12%.
(This will give a fairly exact figure - but for those who want to be technical it will only differ from the actual refund because of interest accrued and not charged until after the fixed rate ended and interest accrued and not charged up to the point of getting the refund).
A person's can calculate what their monthly repayment will reduce to by using the following formula where:
A - Loan Balance at time of fixed rate exit
B - Today's Loan Balance
C - Current Loan Repayment
New Loan Repayment = C x (B - 12%A) ÷ B