How do I work out what interest rate cut will save me?

S

sandrat

Registered User
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Just got the mortgage statement from my bank for the year and the last interest rate applied was based on the 12th november cut. The rate has changed by 1.25% since that so I'm wondering how I can figure out what my repayment will be once this rate is in effect?

I can give figures if that helps because I have the statement!
 

Hi, I have a repayment calculator here in work - I'll give you your repayment amount if you can give me:
the rate you will be on,
your current mortgage balance,
term remaining
Whether interest only or Capital and Interest repayments
 
rate will be 3.25
term remaining 31 years and 7 months
balance is 166,699.84
not interest only, just normal mortgage
We are in to year 5 of first time buyer relief if that helps?
 
Hi Sandra, unfortunately it won't allow me put in decimals and that, so the rough amount on 167k over 32 years is 700.09 per month. This would be before TRS too. I'm not quite sure how much that would amount to, but looks like you'd be paying somewhere aroud the 650 mark maybe?
 
saving just over 100 a month by the looks of things, plus who knows, rate might drop again!
 
I'm coming up with around the same - from my calculator your repayments will be €703.38 (before TRS). Happy days!
 
used that calculator thing to work out interest this year which is 5868.51 so 22.5% of that is 110 a month? could that be right so only be paying around 600?
 
Calculators my This post will be deleted if not edited to remove bad language!

You owe €166699.84 on your mortgage, and you're currently paying 4.5% (I'm assuming, since you say after the 1.25% decrease you'll be on 3.25%).
So you pay €7501.49 per year in interest, or €625.12 per month (€166699.84 x 0.045). So if you take this figure from your current monthly repayment, you'll get your capital payment for your remaining 31 years 7 months.
Your TRS amount per month on this figure, based on 22.5%, is €140.65 per month, taking your total interest paid down to €484.47.

Now if we multiply €166699.84 by your new rate of 3.25%, we get €5417.74 per year in interst, or €451.48 per month. Add your capital payment (that you worked out above), and you have your new monthly repayment.
Unfortunately, with the decrease in interest paid, your TRS will come down too.
So 22.5% TRS on €451.48, gives you a monthly interest payment of €349.90.

So by my reckoning, if all the above figures and percentages are right, you stand to save €134.57 per month.

Oh yeah, I'm bored here in work!
 
 
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