Query re. Egg overpayment calculator

lobster123

Hi, I think I'm having a brain dead moment and hopefully someone can kindly put me right!

I currently have a £32,010 Interest only mortgage (4.5%) and intend to start making overpayments each month. I'm thinking of around £300 per month with a one off lump sum of £3,000. Now after trawling through this wonderful site, I now know that I ask for the payments to go towards the capital element of the mortgage - is this right? I'm also told that the interest on my mortgage is calculated daily (Halifax).

So, now to the Egg overpayment calculator. When I put all the above calculations in, it gives me the "Current" total of £43,533.60 and then states the "Flexibility" total as £36,637.70, making a difference of £6,895.90. My mortgage would also be paid off in 6.5 years instead of the current 8 years. Am I correct in saying, that this is the interest I would be saving?

Thanks in advance for any advice.

ailuro2

I think this is the total amount including interest payable over the time of the mortgage.The third column shows the difference - so the amount of money saved.

ailuro2

so you'd pay a total of £36K instead of £43K making a saving of £6859 in interest.

lobster123

ailuro2 wrote: »

so you'd pay a total of £36K instead of £43K making a saving of £6859 in interest.

Hi, thanks for the quick reply. Quite a saving for me