Offset Mortgages -- the Numbers

Can you help me out here, sorry, but I was never good at maths, although not bad at money saving.

I have an offset mortgage, the payments/savings are classes as gross- so the term of the mortgage reduces-never the monthly amount payable. Which is what i want to pay it off asap.

I have savings linked to the offset, but could also afford to pay more mortgage each month too. Am i better to pay double the mortgage payment each month?-or put the money in the savings account linked to the mortgage. Interest is calculated daily.

I know that if I pay extra mortgage each month, that I will not have access to it-like i would if I put it in the savings account.

I just want to pay it off and therfore pay as little interest as possible.

I was just about to spout my particular circumstances in the hope that someone would help me figure out this black magic wickedness that is that formula, me being one of those thick people and all that.

Then it occurred to me...

Would anyone be willing to put that formula into an "easy to use" spreadsheet?

In fact I would love to have a spreadsheet that allowed me to see, month-by-month my mortgage as a repayment and as an offset and also be able to see how my savings would change in both circumstances.

Would anyone be willing to do this?

I mean, I'm at the stage where I would actually pay someone to put together a spreadsheet that would help me make an informed decision.

Anyone?
Anyone?

:-)

Hmm, couldn't find it, I went through entire thread!

Joannaclaire wrote:

Just found it:

http://forums.moneysavingexpert.com/showthread.html?t=115106

Only snag is that the original poster's links to the spreadsheets don't work any more... maybe you could PM him if you're still keen on getting spreadsheets to compare repaymants/savings etc?

I was that MSEr wot done the spreadsheets. For some reason I deleted them from my webspace & I've lost the originals

It was a standard mortgage spreadsheet I found on the Microsoft Office website, which I adapted to include savings. For the life of me I can no longer find it on the MS website.

EDIT... Just found the template on M$ website. Watch this space...

Youreds!

benjilloyd wrote:

hehe awesome Youreds, i'll keep an eye out :-)

OK the spreadsheet is now back, just the one this time:

Click here

Everything to the left in cream is the original MS spreadsheet which you can get here. Enter in the mortgage details here, remember to take into account any fees, either by adding them to the mortgage amount or deducting them from your savings.

To the right with the nice blue colour is what I've added to compare savings, enter your figures in the yellow cells, I've done an example of a new £100,000 mortgage @ 4.79% over 23 years which is what I've just got with the Halifax, on the savings side we have £25000 @ 5.15% which ICICI are paying, with an additional £200 saved per month, remember to reduce the % rate if your interest is taxed (very important!).

Column K is net interest, what you've paid - earned,
column L is breakeven point, outstanding mortgage - savings.

In this example after 2 years (the usual length of mortgage deals), net interest paid is £6853, breakeven point is down to £62,091.

Now compare to an offset, disregard my blue bits for this, enter regular savings in the extra payments field & lump sum savings in the first extra payments cell. I used 4.94% which IF & YBS are doing, I deducted £700 to cover fees from the savings. This gave results of £7290 interest paid & a final balance of £63,016 (breakeven).

Remember these are just examples, DO NOT take out a mortgage based on using just this spreadsheet, it's just to give you some ideas.

Youreds!