Mortgage due to reduce but want to overpay

ahoare

Hi All,

My fixed rate mortgage at 5.75% with NR is due to come to an end on 01/03/2009 at which point it will switch to SVR of 5.08% as I cannot change mortgage as I have very little equity in the property.

My first question is how much will my mortgage reduce? I am currently on repayment over 30 years (28) left paying £767.26 a month.

My second question is instead of reducing my payments on 01/03/2009 if I continue paying £767.26 so overpaying by the amount in question 1 what effect will this have on my mortgage longer term? i.e. will it really help me get any equity back or will it reduce the term of my mortgage by much?

I want to get equity back into my house if I can so I can change mortgages before interest rates go back up. I had my property valued in December at £130,000 and my mortgage is currently around £128,000.

Thanks in advance for your help

beecher

http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=mortgage_calculator

Use this to work out your payments.

To get down to 90% LTV you'll need to pay off £11,000 from the capital. You're not going to make a huge dent in it by overpaying your savings to be honest, but don't let that put you off throwing whatever you can at it.

worriedagain

this is a handy calculator also:

http://new.egg.com/visitor/0,2388,3_54988--View_1028,00.html

Squish_21

Why is the SVR so high?

ahoare

Squish_21 wrote: »

Why is the SVR so high?

because its Northern Rock and they can't bee too competitive so haven't been passing on full rate cuts. Befor Christmas it was >7%!