What would the monthly payments be on £420,000?
Rough mortgage payments on a £420,000 mortgage on 25 or + years with least possible deposit.
Asked on Nov 3 2009,
Home Finance in Winsford |
That is a much deeper question than it at first appears.
The monthly payments are dictated by the interest rate, and the interest rate is determined by which deal you go for, which in turn depends very much on your circumstances. So I'll attempt to answer a few of these questions.
Firstly, minimum deposit. You aren't going to get away with lewss than 10%, and at that level you are going to be paying the highest interest rates. The more of a deposit you have, the lower the rate.
As for the monthly payments, lets look at a couple of examples, and we will assume a repayment mortgage over 25 yrs.:
Firstly assume you are buying a property for £500k, ie £80k deposit, and 84% LTV.
Nationwide have a deal at 5.74% fixed for 2 years: a 25yr repayment mortgage gives you monthyly payments of approx £2640.
Alternatively Nationwide offer a 2yr tracker deal at 4.93%, which would give monthly payments of approx £2438.
However if you have a much larger deposit and are buying a property worth say £700k, that means a £280k deposit and 60% LTV, the deals get much better.
Abbey do a 2 yr fixed deal at 3.59% giving monthly payments of approx £2123
Northern Rock do a 2 yr tracker at 2.59% which would give monthly payments of approx £1903
So as you can see, the LTV makes a huge difference. But not only that, there are lots of other things that need to be considered. The best advice to you is to seek independent advice from a mortgage broker. As demonstrated, for people with large mortgages the difference from one deal to the next can have a huge impact on the monthly payments and the overall cost of the deal.
Answered on Nov 13 2009,
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