can I get a better deal than this?

plinth · 1 June 2010 at 12:33PM

Hi All

I have just phoned the Royal bank of Scotland who said that they will charge me 4% on any overpayment I make above the 10% I already have paid. I asked to up the payment from £1022 to £1300 which will cost me £11.12 a month is it worth it?

Kind Regrads

Barry

greent · 1 June 2010 at 1:10PM

What's your mtge interest rate? And rate on any savings?

plinth · 1 June 2010 at 2:01PM

My current mortage rate is 5.2% cant get a savings account near that (or not that I can find!!)

dimbo61 · 1 June 2010 at 5:36PM

Can you ask RBS to reduce the term by a few years if you can afford overpayments EVERY SINGLE MONTH !
Use " whatsthecsot" to work out how much extra you would have to find each month if you reduced the term by 1,2,3,4,5 years.
My lender charged me £50 to reduce the term which is still better than paying £11.12 a month.

plinth · 1 June 2010 at 5:53PM

Thats a very good idea thank yo very much il phone them tomorrow

Cheers

plinth · 2 June 2010 at 5:41PM

Can I just say thank you for the advice I would never have thought to do the above we have a mortgage of 145000 and I phoned today and paid 14500 off 10% without penalty I can then pay another 10% off next month as my second year starts and again thats without a penality which takes it down to 117450 they said they would round down my payment and that the figure would be 900 a month but I wanted to overpay to 1300. This would cost me £16 a month :mad: however as advised I asked about reducing the term thus increasing the payments naturally, for £35 one off payment I can reduce my term in line with or near as damn it to £1300 per month saving me £157 a year bargain but also reducing my term!!!!!!!

Im going to have a beer :beer: I quit 2 weeks ago to add cash to the fund but have 2 in the fridge so no money spent

Keep up the good work hwre guys

plinth · 2 June 2010 at 11:10PM

Hi all

I put about 90 items on ebay four days ago and just made over £700 which im putting into an isa the aim is to build up these (we have 2) and use them to pay off our mortage in lump sums. I have has bt internet for 4 years and cancelled this a switched to talk talk at the offer on this site and got £40 cash back and bill reduced to £15.00 saving £20 per month which is crazy.

I am filling in a survey a day and getting money towards tesco vouchers got £10 for joining and filled in three so far so have a total of £13. I have now cancelled sky and switched to freeview 2 boxes £80 sky per month £70 so a £760 saving to go stright into the isa.

Coupled with my overpayments of £280 is chipping away at my mortgage I am slowley going through each aspect of my outgoings in an attempt to cut out direct debits as most companies for car insurance charge between 20-25% my car insurance is due in august and I am saving to pay it off in one lump to avoid the intrest on direct debits.

Tomorrow is looking at my gas and electricity suppliers to see if I can get a better deal, any other suggestions on how I can cut bills or add to the pot would be most welcome

What do you think of these

Buying an electric meter to moniter usage they cost around £29.00
Setting up a water meter again to do the same

Kind Regards

Jonbvn · 3 June 2010 at 8:09AM

4% is a very high ERC. If you did not want to reduce the mortgage term, I would suggest you save the OP money until such time that the ERC no longer applies.

can I get a better deal than this?

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