Overpaying - How do I work this out?

katew87

I overpay on my mortgage every year and hopefully will untill I owe nothing to the bank (Cant wait:D untill that day)

Does anyone know of a good spreadsheet or calculator which can work out how long it will take me to pay off £150k if I overpay by 10% every year untill its cleared. Ive seen so many overpayment calculators which show you how to work it out if you overpay by a set amount each month but cant find anything which will help me in my situation as the payments will get lower each year.

If anyone can help that would be great!

getmore4less

One way to do this is to just use the calculator a year at a time, taking 10% off each year.

Most people find that they can pay a fixed amount a year(monthly) so just sticking that number into a regular calculator will get you close.

Is there any reason to be reducing your payment each year.


Also if you overpay by 10% and don't change the term you will just get a lower regular payments and the term will stay the same which is not what you want I suspect.

taka

You could try locoblade's spreadsheet...

http://forums.moneysavingexpert.com/showthread.html?t=1157173

... for the link to the thread and links! It seems to more or less tally with some of the overpayment calculators listed in the OP calc sticky. You can change the overpayment amt individually (on the 3rd sheet) for whatever month you can OP your 10%.

katew87

getmore4less wrote: »

One way to do this is to just use the calculator a year at a time, taking 10% off each year.

Most people find that they can pay a fixed amount a year(monthly) so just sticking that number into a regular calculator will get you close.

Is there any reason to be reducing your payment each year.


Also if you overpay by 10% and don't change the term you will just get a lower regular payments and the term will stay the same which is not what you want I suspect.

Im looking to do it differently to what most people do I suppose. I will overpay by the 10% every single year untill my payments go down to barely nothing, I dont want to decrease the term to make my payments higher at this stage. My aim is to get 150k paid off in 18-19 yrs, im 21 at the moment!

katew87

taka wrote: »

You could try locoblade's spreadsheet...

http://forums.moneysavingexpert.com/showthread.html?t=1157173

... for the link to the thread and links! It seems to more or less tally with some of the overpayment calculators listed in the OP calc sticky. You can change the overpayment amt individually (on the 3rd sheet) for whatever month you can OP your 10%.

Thats just what I needed, Thanks your a superstar!!:D