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

deefadog

Gallygirl - Many thanks

Deefa I can't find your post with your interest rate. However, you are working out how much extra interest you would be paying on:
M1 165
M2 330
M3 0
So over a quarter of 90 days you would pay additional interest on £165 for say 61 days and £330 over say 30 days.

If your interest rate is 5% you will pay £5 per annum for every £100 you borrow, this works out at £0.0137 per day. Very roughly, using the sums above, you would be paying an extra £3.62 a quarter or £14.48 a year. This is less than 4p a day and even I wouldn't work out an hourly rate on that :rotfl:.

So, unless your interest rate is around 15% :eek: I'd suggest it's not worth losing sleep over.

Of course, you could pay £503.62 per quarter to offset the impact

Many thanks, but i get different results from loco's spreadsheet - that's if i am doing it correctly?

interest is 5.19% -Balance to date is £95760.19 - normal payments are 675.53 (i kept these the same after i paid off 20k)

Here are the next 4 months if i continue:

Min pay
Nov 414.16
Dec 414.16
Jan 414.16
Feb 675.53 + overpayment of £500


End balance - 94998.83 - which is obviously wrong??

THRIFTY_GIRL

deefadog wrote: »

Gallygirl - Many thanks



Many thanks, but i get different results from loco's spreadsheet - that's if i am doing it correctly?

interest is 5.19% -Balance to date is £95760.19 - normal payments are 675.53 (i kept these the same after i paid off 20k)

Here are the next 4 months if i continue:

Min pay
Nov 414.16
Dec 414.16
Jan 414.16
Feb 675.53 + overpayment of £500


End balance - 94998.83 - which is obviously wrong??

Are you going to continue paying £675.53 per month and overpay £500 every quarter?

If so, then the Nov/Dec/Jan figures should be £675.53 (not £414,16) and Feb £1,175.53, resulting in a balance of £94,207 at the end of Feb.

£414.16 is the monthly interest charge, or the monthly interest only payment....therefore with your quoted figures only the Feb payment would result in a capital reduction. The column to the left shows the minimum payment on a capital repayment mortgage.

HTH

deefadog

Hi (and many thanks), no, £675.53 is what i pay currently and the overpayment is included in that - not sure how much as i kept the payments the same, but i choose £414.16 as the minimum payment from the spread sheet - is that not what i would be on if the payments were adjusted?

So confused :rotfl:

deefadog

Can anyone help on the above? I guess the best thing to do would be to phone Northern Rock and find out what my minimum payment would be? or is that an easy thing to work out as i am sure the minimum amount they would accept is high than just the interest?

FB - Also i updated my total yesterday on the online form, but it has not changed, is it supposed to happened automatically or when FB has a chance?

Cheers all

abouttimetoo

deefadog wrote: »

FB - Also i updated my total yesterday on the online form, but it has not changed, is it supposed to happened automatically or when FB has a chance?

Cheers all

Hi Deefadog, does this help - at the top of the form it says,

"This form can be used to give us a mortgage balance update instead of sending a personal message. Values entered here do not directly update a chart."

deefadog

Sure does - got to stop skim reading LoL.

Cheers

deefadog

Ok as of some strange luck, i had my motgage overview in the post today with my payments

So here it is again correct:

interest is 5.19% -Balance to date is £95760.19 - normal payments are 675.53 (i kept these the same after i paid off 20k)

Here are the next 4 months if i continue:

Nov 548.70
Dec 548.70
Jan 548.70
Feb 548.70 + overpayment of £500


Compared to:

Nov 675.53
Dec 675.53
Jan 675.53
Feb 675.53+ overpayment of £7.32

Can anyone work out how mcuh worst off i'd be between the 2 please?

Many thanks

doolally_gall

Hi,
After many hours looking at spreadsheets and lurking on this forum I thought it was time to take the plunge and go for it!

Here are my (scary) mortgage details;
Estimated mortgage 12/12/09 - £109'000 (with 13 years left to run)
Challange - to reduce £25'000 so that come 12/12/12 it will be £84'000.

Ok, now I've actually comitted to this I'm quite nervous now!
Well the only thing to do is to overpay as much as we can and hopefully splatter that target, but currently that's what we want to aim for.

Thanks,
Dg

Welshlassie

deefadog wrote: »

Ok as of some strange luck, i had my motgage overview in the post today with my payments

So here it is again correct:

interest is 5.19% -Balance to date is £95760.19 - normal payments are 675.53 (i kept these the same after i paid off 20k)

Here are the next 4 months if i continue:

Nov 548.70
Dec 548.70
Jan 548.70
Feb 548.70 + overpayment of £500


Compared to:

Nov 675.53
Dec 675.53
Jan 675.53
Feb 675.53+ overpayment of £7.32

Can anyone work out how mcuh worst off i'd be between the 2 please?

Many thanks

The first option will leave you with a balance or around £94,719.84 and the 2nd option would lieave you with a balance of around £94,701.20 so about £18.64 better off with the second option.

HTH

deefadog

Thanks so much, i got the same figures! (Eventually).

Now decisions, decisions, what would you do? be £18ish worse off, but have the overpayments available to be borrowed back, or be £18ish better off?

It's a quandary as you are basically paying to borrow the money back :mad:

Thanks again! Much appreciated