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Average monthly installments on £120,000 mortgage

(17 Posts)
ronny123 Wed 16-Aug-17 19:19:36

Hi Everyone

I think I am paying above average each month on my £120,000 mortgage with about 15 years left. I do not have a fixed rate and pay approx £500 per month.

However, I have no idea what other people pay and my friends rent, so they can't help answer my question.

Can anyone please tell me what they you pay each month for a mortgage of around the same value, in particular if you have a fixed rate mortgage?

Thank you x

ihatethecold Wed 16-Aug-17 19:25:55

We pay £714 per month for a 15 year mortgage.
Ours was 123k when we took it out in march this year.
Fixed for 2 years low % but I can't remember what % it is.

Gizlotsmum Wed 16-Aug-17 19:27:01

We are getting (hopefully ) a similar amount ( 20 year term fixed for 5 years) and will be paying about £620

BarbaraofSevillle Wed 16-Aug-17 19:29:03

You need to enter your original term length, amount and interest rate into a mortgage calculator to check that it comes to the same as what you are paying.

If you are not on a fixed rate, you should be able to swap to another deal with a cheaper interest rate, subject to qualifying for a new deal, if your circumstances have changed, eg lower income, you may no longer qualify - you could be on your lenders SVR, which is often higher, but not always.

Have a look at the moneysavingexpert guide to remortgaging for a walk through guide. You may also benefit from talking to a broker to recommend a new deal - watch out for fees though, which can be high and £120k is a relatively small mortgage, even though it might not feel like it.

ronny123 Wed 16-Aug-17 19:30:22

Thanks Ihatethecold.

I took my mortgage about 10 years ago, so hopefully I might be able to get a really good deal, there's about £70k equity in the property.

KavvLar Wed 16-Aug-17 19:32:59

Ours is 110000 and we pay £675 per month. Fixed at 2.6%

ronny123 Wed 16-Aug-17 19:36:09

Cheers Gizlotsmum & BarbaraofSevillle

I have tried those mortgage calculators but they don't seem to work out right when I do them, so I though I'd ask for real life examples instead.

At the moment it seems I am on a decent rate but I forgot to mention I'm paying interest only at the moment.

ronny123 Wed 16-Aug-17 19:38:33

Thanks KavvLar

Maybe I'll have to stay on he interest only for a while longer, everyone seems to be paying close to £700 - but I'm not sure if they are newly taken out mortgages, which might make them a bit higher.

Gizlotsmum Wed 16-Aug-17 20:04:30

Ah yeah ours would be repayment

titchy Wed 16-Aug-17 20:44:36

shock at interest only. Please please please change to repayment as soon as you possibly can unless you have a sure-fire way of paying for your house in 15 years time.

ronny123 Wed 16-Aug-17 21:32:53

Titchy you're right.

It got complicated a few years ago when my last fixed rate ended - when I rang to take out a new fixed rate, the call handler made a gross error and said I wasn't eligible, as my house was in negative equity.

She was totally wrong as it was then and is now at least £60k in equity but she was using some in-house chart and said it cannot be challenged. Since then I was paying over the odds on a SVR.

A couple of years ago, I found out it was an erroneous decision and I could have challenged it.

I had to switch to interest only for a while because it was too high on SVR and it led to arrears as my income dropped - so it is a temp measure to reduce cost while I challenge the erroneous decision , that unfairly stuck me on SVR.

But although i'm challenging the SVR high rate I was paying which led to subsequent arrears, I'm also trying to find out what the average repayments should be; as I've been stuck in SVR so long and interest only, so don't have a clue what the real picture is out there anymore and my mates don't have mortgages (and I don't trust relying on just the lenders info this time).

I'm arguing I've been overcharged thousands due to being unfairly refused a fixed rate by error and wrong info. So, they might write off the arrears, as well as review my repayment rate.

Thanks for answering my question :-)

leccybill Wed 16-Aug-17 21:40:29

Ours is for £107,000 (house cost £120k) and the mortgage is £475 but we overpay. That's repayment over 25 years but the overpayments will reduce the term.

titchy Wed 16-Aug-17 21:40:32

Sounds a nightmare sad Once it's sorted though make sure any money they reimburse gets taken off your balance, rather than future interest payments.

Escalate to Chief Exec office?

pinkpantsrock Wed 16-Aug-17 21:44:03

£139k, 25 years, £571pm, think my rate is 1.75(ish) 2 year fixed
i have £350k equity.

ihatethecold Wed 16-Aug-17 22:19:31

Ours is repayment.
Op, you are definitely paying too much. Hope you can change to a repayment rather than interest only.

ronny123 Thu 17-Aug-17 01:00:53

Thanks guys, for your info and advice it has really helped me get a broad picture - I really needed an insight, now i know what to prepare for.

Titchy, good call, I will state any money has to come off the balance, cheers - I did contact the CEO's office and it is finally being properly handled and investigated, before then I was messed about for over a year.

Even if i'm successful with my complaint, there could still be problems - I've got some guidance now thanks to all of you on average repayment rates but I have no idea what revised figure they'll come up with or how affordable it will be.

Watch this space ;-)

calmanban Sat 19-Aug-17 07:23:04

We pay 1000 a month... repayment
123000 with 11 years to run

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