Overpayment calculator - here

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  • Nessa56
    Nessa56 Posts: 946 Forumite
    First Anniversary Combo Breaker PPI Party Pooper
    http://new.egg.com/visitor/0,2388,3_54988--View_1028,00.html

    HTH

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  • katew87
    katew87 Posts: 58 Forumite
    The above link wont work for what Im trying to work out, does anyone know of any others?
  • _dave__4
    _dave__4 Posts: 49 Forumite
    katew87 wrote: »
    Im looking to find a calculator which will show me how long it will take me to pay off a 150k mortgage if I overpay by 10% every year untill its down to £0...

    Hi! Is that 10% of each mortgage repayment, or 10% of the initial mortgage amount (150K), or 10% of the reducing mortgage balance -- or something else?!

    Cheers..
  • dapex
    dapex Posts: 10 Forumite
    Not sure why but after reading some posts on this thread I was excited about how much I could be saving. I have a 90K mortgage over 19years and I currently overpay by £80, yet the fool calculator tells me I will save 3 years and 9K in interest. Dont get me wrong thats not to be sniffed at but after reading some peoples comments about overpaying by £50 per month and saving shed loads I was expecting a bit more.. I am on a tracker that is for the life of the mortgage at 0.23% above base.... is it parlty because of the currently lower rates that my over payments are not going to make a massive difference? if I put in high interest rates in the calculator then it shows MASSIVE savings?
  • dapex
    dapex Posts: 10 Forumite
    OUCH!!!.. now my head hurts... can someone explain somehting to me. I ahve been using the calculator on fool.co.uk and used the following figures
    £90,000 mortgage
    £620 monthly payments
    5% interest rate
    That tells me I will be clear in 18years 5 months and will have paid £46,483.20 interest

    Now then, if I put in my overpayment of £80 per month it tells me the following
    I will be clear in 15years 3 months and will have paid £37,738.94 interest.

    So by over paying £80 per month I will save £8744.26 in interest...BUT.. if you work out that 15yrs 3 months is 183 months then I will have overpaid by (183x£80) £14640..

    So if i overpay by a total of £14640 I will save £8744.26.....
  • Welshlassie
    Welshlassie Posts: 1,731 Forumite
    First Anniversary Combo Breaker
    dapex wrote: »
    Not sure why but after reading some posts on this thread I was excited about how much I could be saving. I have a 90K mortgage over 19years and I currently overpay by £80, yet the fool calculator tells me I will save 3 years and 9K in interest. Dont get me wrong thats not to be sniffed at but after reading some peoples comments about overpaying by £50 per month and saving shed loads I was expecting a bit more.. I am on a tracker that is for the life of the mortgage at 0.23% above base.... is it parlty because of the currently lower rates that my over payments are not going to make a massive difference? if I put in high interest rates in the calculator then it shows MASSIVE savings?

    The lower the interest rate the lower your monthly payments will be. if you are just overpaying by £80 per month and keeping it at this level when your monthly rate drops then you will see a smaller reduction.

    Alot of people have much higher interest rates, you ahve a brilliant deal there, so keep that in mind.

    If you keep your monthly payment the same even after the rates have dropped (therefore increasing your OP) you won't actually see any difference in the amount of money you have available to spend each month, but you will see a difference in the amount you cut off the mortgage.
  • dapex
    dapex Posts: 10 Forumite
    Welshlassie wrote: »
    The lower the interest rate the lower your monthly payments will be. if you are just overpaying by £80 per month and keeping it at this level when your monthly rate drops then you will see a smaller reduction.

    Alot of people have much higher interest rates, you ahve a brilliant deal there, so keep that in mind.

    If you keep your monthly payment the same even after the rates have dropped (therefore increasing your OP) you won't actually see any difference in the amount of money you have available to spend each month, but you will see a difference in the amount you cut off the mortgage.

    I do keep my payment at £700 per month so hopefully with the drop to 3% I will be overpaying even more.
    To be honest I dont keep my payments at that level in order to overpay, I do it simply so that when the rates go back up I dont feel the pinch, the over payment is just an added benefit
  • Welshlassie
    Welshlassie Posts: 1,731 Forumite
    First Anniversary Combo Breaker
    dapex wrote: »
    I do keep my payment at £700 per month so hopefully with the drop to 3% I will be overpaying even more.
    To be honest I dont keep my payments at that level in order to overpay, I do it simply so that when the rates go back up I dont feel the pinch, the over payment is just an added benefit
    I tend to your the egg calculator find it easier to understand and has a graphical representation
  • _dave__4
    _dave__4 Posts: 49 Forumite
    dapex wrote: »
    ... used the following figures
    £90,000 mortgage
    £620 monthly payments
    5% interest rate
    That tells me I will be clear in 18years 5 months and will have paid £46,483.20 interest

    Yep, the calculator here is similar:-
    http://calc-calc-calc.net/get/calc/Mortgage-Overpayment/v1/?l=90000&i=5&t=19&o=0&m=620&e=0&d=3
    dapex wrote: »
    Now then, if I put in my overpayment of £80 per month it tells me the following
    I will be clear in 15years 3 months and will have paid £37,738.94 interest.

    Similar again here:-
    http://calc-calc-calc.net/get/calc/Mortgage-Overpayment/v1/?l=90000&i=5&t=19&o=80&m=700&e=0&d=3
    dapex wrote: »
    So by over paying £80 per month I will save £8744.26 in interest...BUT.. if you work out that 15yrs 3 months is 183 months then I will have overpaid by (183x£80) £14640..

    So if i overpay by a total of £14640 I will save £8744.26.....

    18y 5m @ £620 = £137,020, 15y 3m @ £700 = £128,100, saving you £8,920 overall.

    You would overpay by £14,640 in the first 15y 3m (183 x £80), but then underpay by £23,560 in the next 3y 2m (38 x £620), so overall you would underpay £23,560 - £14,640 = £8,920.

    Does that help?
  • londonlife7
    londonlife7 Posts: 3 Newbie
    Hi Guys

    New here. Have had an offset for years but now just getting serious with it as have decided to get mortgage free asap and to take advantage of the next few years likely low interest rates.

    Current situation

    £122k mortgage with IF.com offset
    5% if they pass on recent reduction
    £30k savings against it
    12.7 years left
    £2k per month can go to savings ( hopefully ;)
    £1k is average ish current account balance

    Restrictions. I have to pay into savings and not overpay as business owner and may have to get to cash if things go bad

    I have been playing with various online calculators and just want to check if my rough calcs are in the right ball park

    New mortgage payment should be around £1083

    I am working out that my end date would be 9.9 ish years instead of 12.7

    Or 2.7 years if I use the capital in the savings account to pay of the mortgage when the amount exceeds the debt if you get what I mean.

    Savings on interest on the are huge and hence the determination to do it.

    Are my calcs roughly correct?

    Thanks for any input
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