need help working out how much i will be saving with my overpayments please!

trudypretty

Hi there, i have been reading on here for a while now, and have now joined for some inspiration and advice!! i need help from someone....in working out how much i am saving and how many years i may be reducing by mortgage by making overpayments. I am not sure how i would be able to work this all out!!!

here are all the details - morg = £53,800 - 19 years left - interest is 5.85% fixed until dec 2011. my payments are £400 per month - although i have changed this to £100 per week now, as i am thinking that if interest is charged daily, this would reduce it quicker? also in theory in 5 week months i will be overpaying by £100. i am currently paying an overpayment each week of £20 cash at the bank. i know 20.00 isnt loads to over pay each week, but i keep reading anything is better than nothing!

so if someone could help me work out how much i am reducing the mortgage by, that would be really helpful please!!!!

Welshlassie

A very rough calculation using the egg calculator shows you would be saving 7 years and over £14,282 over the course of the mortgage.

I put your figures in as follows.
£53800 in 19 years at 5.85% gives a monthly payment of £391. £100 per week x 52 is £5,200 plus £20 x 52 is £1,040. These together are £6,240 divided by 12 is £520, when you add £130 to the overpayment box it gives you the result. Obviously because your interest is calculated daily you would potentially save even more. However if you payment the full monthly amount on the 1st of the month you actually pay more off over the course of the month than if pay £100 per week.

trudypretty

hi welshlassie...thanks so much for working that out for me, i just dont seem to get the calculators for some reason!!! now that you have broken it down for me like that...it looks quite good, i wasnt sure if i was going to be overpaying enough to see a big reduction...but 7 years is quite a big
chunk :j .
i pay the cash weekly instead of all together at the beginning of the month, as i get cash weekly and find it eaiser to pay straight away ..otherwise if i save it up i tend to use it for something else!!! i think it would be really good to try and pay as much as i can, as you calculations show it really makes a difference to the term , thanks for doing that for me , i love it on here as everyone seems to know so much!:rotfl: