Repayment cost at 3.7% rate

S

selfbuilder

Registered User
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Hi,

I currently have a mortgage of €190k over 30 years at 3.7% with EBS. My monthly repayment is €909.42 excluding mortgage relief or any insurance. When I put these details into any of the calculators including the EBS calculator I get a repayment of €874.54. I have asked at my local EBS office and they say its because I only have 15 years 7 months left on my mortgage. I get the feeling they are just fobbing me off. Can anyone explain the difference in the two figures?

Thanks.
 
Ah, ok. based on the numbers you've given, your remaining balance is about 129k?

You can't really use original balance / term and current rate to work out your repayment amount.
Unless the interest rate had always been 3.7% the rate at which you paid off capital would lead to a different repayment amount now.

If interest rates had been higher on average since you drew down, you've paid more interest and less capital than if it'd always been 3.7%. So your balance would be higher now requiring larger repayments to cover it over the remaining term.

Does that make sense?
 
Cheers. I couldn't understand where the difference was coming from. As long as the monthly repayment is correct. I'd hate to be paying them more that I have to. Thanks for putting my mind at rest.
 
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