MFW Challenge - Pay Off Your Annual Interest aka Yet Another Diary

nattypants

Hi Floxxie:hello:

I'd love to join you in your challenge if I may?

I am not too sure how to work out my annual interest though (I am on a tracker) - current rate is 3.34% (whayhay!) which won't go any lower - however over the year may increase (boooo!)

I have set up an OP of £100 per month and would love to be in a position of OP on the interest - although might be a tad ambitious:o

If anyone could kindly advise me of my annual interest charge I'd be v v grateful;)

ps. as of end December I owed £74795.62

NP

Floxxie

Hi nattypants,

Love the username

Of course you can join me. It has been a little quiet around here so the more the merrier. :rotfl:

Now to work out your interest. As you don't know, I take it you don't receive a monthly statement telling you how much they have charged you in interest? Or an annual statement?

Ok, if you go to an online calculator, for example https://www.jeacle.ie and put in some figures i.e. outstanding amount, interest rate, years left and your overpayment of £100, it will work it all out for you. You can then either have a look at the monthly payments to see how much interest you will be paying or the annual interest.

If you having difficulties with it, just pop back on here and let me know how many years you have remaining on the mortgage and I'll see what I make it.

Floxxie

nattypants

Oooh - I'm really cr*p at this. Been on the mortgage calculator (thank you for the link) but ended up just confusing myself - not really that difficult to do!:rolleyes:

I received an annual statement just the other day which details;
gross interest for 2008 @ £3934.45

As I'm on a fixed tracker, my interest rates have varied from 5.84 - 3.34%

I have just set up OP of £100 first payment to come out 1st Feb. However I have also arranged a standing order with a view to making additional OP as and when. I would like to use the Standing Order facility as your "pay the interest challenge".

I am not too sure when interest is applied to my mortgage, although I do know that the mortgage payment leaves my account approx 5th of every month.

I hope that I've provided you with enough info and I'm so sorry that I'm too much a twonker to work this out for myself:o

Thank you for letting me join your challenge Floxxie:j x x x :j

Floxxie

Hi nattypants,

I'm on a tracker as well so my interest fluctuates depending on the interest rate and how much I have overpaid. It can be very confusing. What I suggest you do is take last years annual interest charged and make that your target. This year's interest should be lower for you because of the rate reduction but rather than make it complicated, keep it as simple as possible but also be aware that your interest SHOULD be lower than £3934.45

So a monthly target would be £327.87 a month. You are arranging for an extra £100, so you could, if you thought the monthly target was too high, take it off so your monthly amount to find/earn would be £327.87-£100=£227.87 - a similar figure to mine.

(If you can find out how many years you have remaining on your mortgage, I would then input that to the mortgage calculator and take the rate you are paying today and input that - if you need help on it, just let me know 1) how many years remaining 2) what your mortgage deal is e.g. 0.48 over base tracker 3) what your minimum payment is)

Hope that made sense and no you're not a twonker!

Floxxie

nattypants

Good Afternoon Floxxie

Hope you're having a good weekend:D I have revisited the mortgage calculator and have concluded the following;
1. I am fairly thick
or
2. I am a right lazy a*se
I'm afraid I need your brain cells to help me (again!)

I have 20 years and 8 months left and currently pay £416.41 monthly (not incl OPs)
I'm unable to locate my mortgage blurb but do know that the £416.41 is the least amount I pay with £535 the highest. I hope this helps?

Initially when I saw the extra £228 OP I must confess I had thought noooooo waaaayyy BUT if I start ebaying (and believe me I have a "Monica Cupboard" full of potential ebay[strike] tat[/strike] I mean quality goods)....maybe I can do it:j
My motivation will definitely be knocking years off my mortgage - it is fairly depressing considering last year I stoopidly borrowed £5K for home improvements:o

Thank you so much for your help Floxxie

NP

Floxxie

Ok, had a quick look. The mortgage calculator won't quite do what we want it to so I've had to jiggle the figures about. It allows me to input £74795 as your outstanding amount, 21 years as the outstanding term, 3.34% as your rate. It tells me that you will be paying £413.36 a month which is a little out so under monthly prepayment I have added £3.05 (starting month 1) to bring it up to £ 416.41.

Under extra payments (click the tab) I have added £100 (starting month 1, ending month 12). It will then show that by making that overpayment for a year your mortgage term will shorten by 8 months.

If you click on annual or monthly table (nearer the top) and it shows the breakdown of interest as: J 208.18, F 207.32, M 206.46, A 205.60, M 204.73, J 203.87, Ju 203.00, A 202.12, S 201.25, O 200.37, N 199.49, D 198.61 Total interest for year £2441.00

It's not 100% but there's a figure to aim for! (I'm input an extra payment as £2441 paid in month 12 i.e. you save it all up and paid it off in December. It tells me that you would save 1 year 7 months on your mortgage term - hope that's a motivator!)

Come and join us on my eBay challenge on the DFW board. I have a house full of stuff that I need to get rid of and I'm hoping to complete this challenge selling the bl**dy stuff! :rotfl:

Floxxie

Floxxie

Not too much to report this weekend. Have managed another couple of repayments totalling £16.43 which includes part of a Zopa referral (I gave the other £40 to the person taking out the loan), found money on the street, loose change sat in a drawer and money saved from an Asda shop.

Hoping that next week eBay listings will give me some funds as I need to find just under £50 by the end of the month!

Total overpaid so far: £173.45

nattypants

Firstly a great big bunch of virtual flowers from me for all your help:cheesy: and secondly a great big well done for everything you have achieved:T

I will definitely join you in your ebay challenge (although have an ebay account from buying, I have never sold).
Can you guess what's coming next? Yes Floxxie..........run for cover :eek: cos I will no doubt be pestering you with many many ebay questions:p

Nattypants senses that Floxie is seriously considering a new username

Talk soon:D

NP x

Floxxie

Ah thankyou

Didn't bother reading the message about the boards being down because of maintenance so typed out a lovely long message to then lose it - aggghhhh :eek:

Hope you do join me on the eBay challenge; I need someone moaning at me and no I shall not be changing my username, no matter what you might say or ask; it's taken far too long to earn my medals :rotfl:

So are you starting your challenge or practising until 1 Feb?

Floxxie

Floxxie

Ok, had a look at my online balance but of course it is not accurate because several overpayments haven't made it there yet. Withdrew £500 from Natwest esavings yesterday as the rate was so rubbish and have paid that across. Will also do my DH's account but he couldn't remember the password so he has to wait for a passcode to come in the post.

I'm really hopeful that by the end of this month the mortgage will be down in the 83k region. I am then going to do something a bit odd and use some of the reserve to pay into one cash ISAs for 2008/9 and replace the Icesave ISA funds so that will be £6642 that I shall 'borrow' . It makes sense as the interest I am being charged is 1.98% and I can get higher in an ISA.

I shall then concentrate on paying off the 'overdraft' so all monies made will go straight onto it, rather than the mortgage as it is now. The downside is that the interest charged part will be substantially higher than now but that should kick me into gear to get my household contents sold :rotfl:

Aside from that, today I have made an overpayment of £3.50 made up of £1.54 refund from Asda (1 bad apple in a pack) and £1.96 money saved at Tesco.

Total overpaid so far: £176.95