# How to calculate the repayments on an UB or BoI mover tracker



## Brendan Burgess (22 Mar 2014)

How to calculate the revised repayments on an Ulster Bank or Bank of Ireland mortgage. 

Let's say I have an Ulster Bank mortgage of €200k @1% over 20 years. How  much will the repayments increase by if I move the tracker to a new  home? The rate will increase to,say, 2% for 5 years, after which it will  move to a SVR of 5% 

My repayments at the moment are €920 per month. 

Karl Jeacle's Mortgage Calculator allows you to do this. 

Scroll down to Fixed loan data 
Enter Principal  : €200k
Enter interest %: 2
Enter years: 20 

This will show the payment of 1011.77

Then click on Interest and the "Expenses" field will change to "Interest rates" 
Under interest % #1 , put in 5%
Under Start month, put in 61 ( 5 years at 12 months = 60) 
Under end month, put in 240 ( 20 years at 12 months = 240) 

Click on Payments Table. This will show you the payments for 2014. 
Slide over to 2019 and you will see that in March 2014, your repayment will rise to €1,243







*Additional interest - which is the real cost in the early years 

*First 5 years - 1% of €200,000 = €2,000 a year or €166 per month 

From year 6 on - a further 3% of €157,000 = €4,710 per year or a further  €400 per month - in the initial years 

But it won't be €400 a month for the full 15 years. As I pay off the capital, the difference will be much smaller. But as the monthly repayment is fixed, the €200 extra is fixed for the life of the mortgage (assuming interest rates don't change)


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## pippa175 (22 Mar 2014)

Thanks Brendan. I would have thought the repayments would have been higher. I had a look for our own situation and it definitely makes the deal more palatable.


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## Brendan Burgess (22 Mar 2014)

Hi pippa 

Thank you. It was your question on the other thread that prompted me to look for calculators. Then I couldn't find your question to reply to it. 

I am very surprised at the figures myself.  I thought it would be much more expensive. 

Brendan


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## pippa175 (22 Mar 2014)

I had heard previously that on a tracker for a mortgage of 300k, over the lifetime you could save up to 150k when comparing to SVR. 

Possibly when I heard those figures it had been computed over a longer lifetime e.g. 30-35 years and estimated higher average SVR.

For us, it is definitely worth paying attention to such variables when figuring out our potential costs.

Thanks for your detailed response, I really appreciate it.
Pippa


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