Overpayment calculator - here

John_LG · 11 April 2006 at 5:09PM

Good question Halloweenqueen. Well if you use the fool.co.uk link I gave earlier, I'd use the overpayment calculator, but with no overpayments!
Sounds silly, but if I type in (from info in your signature) a debt of 84k, with a monthly payment of £750, at 5.35%, with no monthly overpayments = 13 years, 6 months, with total interest of £33,149.31.
Then repeat that step but change the debt to £83,250 (i.e. you've made a lump sum payment of £750), and it gives 13 years, 4 months, and total interest of £32,389.85.
Therefore your £750 overpayment has knocked two months off your mortgage and saved you nearly £760 in interest - which is amazing (almost like doubling your money).
And you have doubled it...
£750 off your outstanding debt, AND £760 off the interest.
WOW - isn't overpaying fantastic?
Of course, the lesson to us all is never to borrow money - but in practise we all have to, to buy a house. I will NEVER owe anyone anything on a credit card, or a car loan (unless they are interest free) - 'cos it takes too long to earn it in the first place.
Hope that makes sense,
P.S. Ever thought of selling your premium bonds to add to the mortgage? I know they are a cheap-no-lose lottery equivalent, but really they are losing money (no interest, and inflatation decreases their actual value. They could save you another £1,090 in interest over the term of your mortgage (which is equivalent to two £50 wins a year...)

halloweenqueen_2 · 11 April 2006 at 6:16PM

Wow, thanks John! I'm still curious as how they work it out on a calculator so I wouldn't have to go online, but the fool.co.uk is the best calculator for overpayments I've seen I think.
The premium bonds are a bit of sentimentality, the money came from an inheritance, so i want to keep them seperate so they don't get lost! They maybe for a travel fund in future! My ambition was to reach £5000 with the £2 coins but I may get up to £2000 and then put a £1000 back into the mortgage overpayments, i'll always have a £1000 emergency buffer then.
My mother bought a house in 1974 and worked like a trojan to pay it off in 2 years, the bank tried to get her to keep it but she paid it anyway. Sadly I have ben unable to follow that example due to arious circumstances and I'm 9 years in, did manage to knock 3 off the total of years to 22 years instead of 25. My ambition would be to pay it off in less than 6, so knocking 10 years off altogether.
many thanks for your help, much appreciated!

nicka2 · 13 April 2006 at 7:32PM

Most of the calculators allow you to enter decimals, so if you've got 10 years and 6 months left, enter 10.5 years, etc

dippy-dora_2 · 24 April 2006 at 11:35PM

I'm lucky enough to only have a 9 1/2 grand mortgage left, and by paying only 20 pound a month extra i can finish it 10 years sooner!!

that's if i worked it our right of course :-)

dippy-dora_2 · 24 April 2006 at 11:39PM

Check there are no early finishing charges with your mortgage. Nationwide didn't charge me on my last one but can't speak for other mortgage lenders, but they did make a point of mentioning the no early finishing charges.

aliwatts · 29 April 2006 at 11:50AM

I have used the mortgage calculator and think it is great, just by rounding my mortgage off to the nearest £10 i can cut it by 8 months ! Obviously gonna try and pay lot more than that but its a regular start.

Miss_Penny_Pincher_2 · 21 May 2006 at 10:09PM

The best calculating spreadsheet I have found can be downloaded free from

http://www.mortgagesexposed.com/Spreadsheets/Flexible%20Mortgages.xls

This is great because can input whether you have interest only or repayment mortgage and also it examines every year so you can adjust the interest rate in each year and the overpayment amounts in each year too and it is all shown on a chart. It also shows how much of your mortgage contributions each year would go towards paying off the capital if you only pay the minimum payment each month (a horribly low amount!). This spreadsheet has been a great incentive to me to overpay when I imput higher payments and see the mortgage remaining line drop almost vertically to zero!

We only got our mortgage in March 2006 but this has really inspired me to start saving hard and using it to pay off more of the mortgage!!

mortgagesexposed.com also has lots of other spreadsheets to calculate loans and whether its worthwhile getting into buy to let market etc but I haven't really used those.

halloweenqueen_2 · 22 May 2006 at 11:01AM

I don't seem to be able to change the term from 25 years but a very useful tool, thanks!

Miss_Penny_Pincher_2 · 22 May 2006 at 6:45PM

You are right Halloweenqueen - I hadn't noticed that because my mortgage is for 25 years

I had another look at that website and they have this calculating Excel spreadsheet where you can change the length of the mortgage i.e. to 15 years:

http://www.mortgagesexposed.com/Spreadsheets/Flexible%20Payment%20Mortgage.xls

This is set up to increase payments each year but you can just put 0% in the 'payment increase' box and type in the desired payments that you want to pay.

Your guess is as good as mine as to how long it took the guy to perfect all these spreadsheets :rotfl: I hope this works for you

halloweenqueen_2 · 22 May 2006 at 9:28PM

Thanks for that pennypincher!

Overpayment calculator - here

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