Haven's repayment figure v Karl's repayment figure

Hi all,

Just wondering what you think of this. I received my letter from Haven about the new SVR rates which they are changing from 4.6% to 4.35% They also include the old and new repayment values and they have reduced by just over e40. I was looking at Karl's mortgage calculator and something interesting came to light.

I put in all my details and at the 4.6% rate Karl's repayment amount is cheaper by e17 and hte 4.35% rate he is cheaper by e23. The only way I can get both sets of figures to nearly match up is by putting 4.7% and 4.45% into the online calculator. Any idea why this might be happening?

FYI, they are also offering new fixed rates and the lowest available is 3.8% for 2 or 3 years. If I assume that is more like 3.9% on the online calculator, that is offering me a reduction of e145 a month which is obviously very tempting as I am in year 7 of my mortgage (bought in 2008) so the end of TRS is looming. Should I? Shouldn't I? Is the feeling still that the rates may come down even more so should I wait?

Is the AIB rate the APR?

Does Karl use the APR?

Brendan

This is the one I was looking at :

www . drcalculator . com / mortgage / ie /

The Haven letter just says that the existing rate is 4.60% and the new interest rate is 4.35% which I put into the interest box on the calculator.

This may be relevant:

[broken link removed]

Notes

Enter the nominal interest rate not an APR.
All calculations are performed on a monthly basis.
The figures are estimates only - your lender's figures will vary!

Amortization formula

Karl's Mortgage Calculator uses a standard amortization formula commonly used around the world. Interest is calculated on a monthly basis. Most financial institutions base their calculations on this formula, but many will calculate interest on a daily, weekly or even annual basis. The figures generated by the calculator should therefore approximate what your lender will charge you, but you should always contact your lender for exact details on how and when they charge interest on outstanding principal balances.

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Click to expand...

Thanks Lender's figures do vary but at least I know to add 0.1 to the figures to get a closer approximation so I can still use it to test extra payments etc.