Mortgage Amount After 2 Years

[Ric.ror]

If I had a C&I 25 year mortgage of £60k with a fixed rate of 4.1% for the first 5 years would be what amount after 2 years of payment
Also how much if an overpayment of 10% per month in excess of the £205 repayment was made

Thanks in advance

[Peter Pedant]

if you have excel - the FV ( final value ) function will give this
Remember to whack in negative values ( or else it acts like a bank savings account)

[Peter Pedant]

and it seems quite a lot ( left ) - th early part of a repayment mortgage is only interest as it is in this case on the figures given

really £205 per month? - as it is 25 you can do a yearly approx
paid off per year £2460 - and interest in the first year £2400

capital sum paid off - £60
this is nt going to vary much over the first five years (£300)

10% over payment? a linear approx wd do over 5 years
£246 extra - so £300 in the first year, or £1500-2000 off and £58000 left after five (*)

Ball park figures - FV will give exact, which is unlikely to be difft by more than 10%

Good for an A level q to be honest ...(*) the short answer is after analysis, the first part is virtually nothing paid off, so the 10% all goes to paying off the capital -

as a check - three thousand down after five years
interest now 2280 or 190 a month - and so you are still paying off 190 of interest out of 205

are you sure you pay if off with £205 per month?

[Peter Pedant]

google mortgage calculator
plugging in your initial values, your repayments should be £320

which is MUCH more like the feel of it

[bobbinwales]

Is it repayment mortgage or interest only???

[Peter Pedant]

pretty slow bank holiday
right £320 per month is £3840 pa and of that £2400 is interest as before and so the capital paid off is 1440, - next year 1498 capital paid off, then 1592,1655 and in the fifth year £1721
which I think is not unadjacent to £7904 total capital sum paid off at a repayment of £320 after five years - Ans

10% hike in replayment £8000 goes to £8800 repaid

well that is my go anyway

[Peter Pedant]

oh come on bobo
repayment interest only is - - - nothing paid off !

[bobbinwales]

I know but interest only might explain the low payment?

[Peter Pedant]

anyway no guarantees - good luck Rir ror
kept me off the streets for a few hours
been feeling pretty terrible for 48 h

oh and stop press ! a wasp stung me at 0500 - crawling on my forehead. eek I hope it wasnt building a nest in the bedroom !

[bobbinwales]

C&I may mean capital and interest tho rather than name of lender

[Peter Pedant]

yeah wiv ma A level hat on
I thought - - - hold it it wont pay off at 25 y ( brayne goes whirrrrr you know ) hence my referring to the mortgage calc

[Peter Pedant]

oh I had endowment all those years ago
( all dead - endowments I mean )
and even bought second hand endowments ( not a great money maker at the end)

and then SVR - RBS I have to say were pretty terrible

[THECORBYLOON]

Using an interest-only calculator shows the £205 equates to the monthly figure required if the interest is 4.1%, suggesting the question relates to an interest-only mortgage.

[THECORBYLOON]

The "C&I" might be a "commercial and industrial loan which is any loan made to a business or corporation, as opposed to an individual."

[Peter Pedant]

Hi corbo
yes standing back - you and Bobbie are quite right

I have been frizzy all day and just wanted to do a calculation - and have a decent conversation with the few people who are sane on this thread. I mean some of them - I wd rather stare at a rats arriss for two hours

[Peter Pedant]

site - site sane on this site
not thread - frizzy see///

[Ric.ror]

C&I = Capital and Interest
There are 60 payments at £204.50 then 204 payments at £164.50 (3.29%)

[Ric.ror]

I guess I better explain a little more
This is the best rate I can get at the moment- I have a CCJ which runs out in two years
Should I take this rate now and hope for a better interest rate after the two years run out or wait for the two years to run out and then get a loan?

[THECORBYLOON]

There's 300 months in twenty-five years.

60×£204.50 = £12,270
240×£164.50 =£39,480

So the total is £51,750 which looks like the figure for the interest only.

[Peter Pedant]

erm no prices are going up now whether or not it is expected AND with all the punters spending their savings
the word on the street is that interest rates will go up

so act now

I have read ( and written most of the posts) the posts here - it is clear your figures are interest only

but there is enough info to act or wait

remember we are not investing - and we are just kicking a few figures around.

the rents here are around £500-600 p c m and so there is more than enough to cover the repayments BUT the tax position is important - only interest would be claimable and the position is changing ( to not claimable) - but all that means is that the tax paid is passed onto the tenant in the large scale of things

[Ric.ror]

Thank you all for your responses - especially you PP with the added vexation of the wasp sting
The mortgage is against a property I own outright and rent out in order to find the purchase of the property next door which already has a sitting tenant in who has been given notice to leave as the owner wants to sell the property. The tenant has lived in the property for eight years and does not want to move. I’m hoping to use the borrowed money to provide a 40-45% deposit - depending on the expected purchase price. But that’s all for the future - I’ll no doubt be in further contact about that further down the line
Once again thank you all so much for your replies
I love each and every one of you