The Mortgage Free in Three - Take 2 challenge (MFiT-T2)

Louba

Arg - also stuck on a fixed rate of 5.79! Eek, it's due to end in April so hopefully something much better will be available by then giving me more free cash to overpay We're also considering moving so I might need to rethink my target :rolleyes:

deefadog

I found some nice calculators by searching google and they work on my mac with office 2008 :j Although the monthly totals come out different, so need to get that sorted.

Just a question which may seem dumb (please correct me on any points). My minimum monthly amount that goes out is around £500 (i have simplied the numbers) of which £400 is added back in interest (although this does decrease) so i am only actually shaving off £100 per month off the total. So my mortgage is at 95800, if i make an overpayment of £800, does this mean that my balance will instantly be at 95000 and then 94900 after next months standard payment?

Thanks

financialbliss

deefadog wrote: »

So my mortgage is at 95800, if i make an overpayment of £800, does this mean that my balance will instantly be at 95000 and then 94900 after next months standard payment?

Thanks

deefadog - yes sounds about right. Your £800 OP is pure capital and will reduce your balance, but to get your net monthly reduction, your normal monthly amound has to have the interest taken off for that month.

Amazing how much of your normal monthly payment is swallowed up by interest isn't it? :eek:
FB.

deefadog

:T Thanks for confirming that!

So at least i know if i pay a fiver off, a fiver will come off the total - this is going to be addictive!

Yes it is scary, because you think 5% that !!!!!! all, but when you see the spread sheet it paint a totally different picture!

I have asked the question to Northern rock, as when i paid a lump sum off (20k) i kept payments the same, so overpaying £107ish pounds per month, but on my "amount to borrow back' I just have the 20k - Any ideas why it's not added?

FunnyRabbit

This is going to be such an addictive challengem I cant wait for it to start now that I have all the details I need. I have set up a budget spreadsheet and another to detail all my overpayments, but because we are on interest only, the payment calculators dont work for us

elliemoo

We are stuck on a fixed rate of 6.85% until 30.6.2010, but trying to overpay the max £500.00 per month.

deefadog

Funny rabbit, i am sure there are interest only calcs out there!

FunnyRabbit

If anyone can point me to one that would be great, because I cant seem to find one

deefadog

Hows this one? - http://www.vertex42.com/Calculators/interest-only-loan.html

FunnyRabbit

Thanks I must be blind because the Egg one I was looking at today has an IO option!