Answer: You will pay £1,912.54 each month.
Explanation:
We can use the formula for the monthly payment of a loan with compound interest:
monthly payment = (principal * monthly interest rate) / (1 - (1 + monthly interest rate)^(-n))
where principal is the amount borrowed, monthly interest rate is the annual interest rate divided by 12, and n is the total number of monthly payments.
In this case, the principal is £64,950, the annual interest rate is 4%, so the monthly interest rate is 4%/12 = 0.00333, and the number of monthly payments is 36.
Plugging in these values, we get:
monthly payment = (64950 * 0.00333) / (1 - (1 + 0.00333)^(-36)) = £1,912.54
Therefore, you will pay £1,912.54 each month.