How do you work out the increase in monthly mortgage payment when rate goes up?

[katierocket]

So for e.g. £180,000 at 4.99% is x per month what will monthly payment be at 6.5%

I'm sure this is easy and i'm just being dim.

I am not sure how you do it but the mortgage company should send you a letter to let you know what the new payment will be and it should be in plenty of time before the amount goes up.

thanks
Anyone else know a way to work it out?

can you do it as a percentage of what you already pay i.e. - your current monthly repayments are £1000/month - that is at an interest rate of 5%, therefore each 1% of interest costs you £200 per month, therefore 6.5% interest would be £1250/month - adjust for your own figures.

link{http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml\here}

Just put in your new rate and it will do it for ya! HTH.

link{http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml\here}

can't do a link for some reason, sorry.

here

thanks that's great.

If you get a mortgage illustration from a lender or broker (called a KFI) it will tell you what effect a 1% change would have on your payments.