Formula for working out mortgage interest rates?

[lighterthief]

Remember that the variable rate will almost always be more expensive though

If you can't afford to remortgage now I would have thought it even more unlikely that you would be able to afford the bank's variable rate

 

[sojourner]

The variable interest rate you are about to be transferred to will almost certainly be higher than the fixed interest rate you are paying now. Mortgage companies make a lot of money by people not bothering to remortgage and who therefore end up paying over the odds in interest charges.

I'm not sure why your interest calculation isn't working, as you've got it right:

£65,000 x 5% = £3,250 per annum

£3,250/ 12 = £270.83 per month

Ah I didn't read this properly yesterday.

Thing is, I was on some kind of new start mortgage where I was paying interest only for the first 3 years, at a fixed rate, which is why it was at the level it was.

Weird though, cos the fixed rate payments are £100 a month more and the variable monthly payment they've given me is only £25 a month more - which goes against what you're saying about variable being more than fixed.

Fucking minefield it is.

 

[sojourner]

Remember that the variable rate will almost always be more expensive though

If you can't afford to remortgage now I would have thought it even more unlikely that you would be able to afford the bank's variable rate

Thank you! Thanks for being so persistent about this - I've just checked with the robbing bastards, and the price they gave me for the monthly payment is only at the interest-only rate - it actually goes up to £392 a month in July!!! I've just made a formal complaint about the letter being incredibly misleading.

BASTARDS!

 

[lighterthief]

You're welcome Drop me a PM if you want any further help. Thing is, if fixed rates have gone up since you took out your mortgage (which they will almost certainly have done) you can't escape the fact that your mortgage repayments will almost certainly go up as well, even if you remortgage. The trick is to make sure they go up as little as possible.

 

[sojourner]

Ta for that offer. I am now having to work out how I can afford the extra, and will be checking out a few of the options zenie mentioned (which I also didn't see yesterday cos she edited them in after I'd posted ) - but thanks for those zenie. There's no getting around the AT LEAST extra ton a month...all I can do is keep it around that mark and no higher

Fuckin bricks and mortar and they charge all this money for it - biggest fucking rip off going or what?!