Overpayment question?

tegai1

Particulars
Mortgage @ £89,200
Repayment @ £564.21
Interest rate @ 6.08%

This gives me an output without overpayment of: 25 years, 8 months left with paying £84,242.04 in interest.

If I overpay by £100 a month, it changes to: 18 years, 5 months and only £57,348.22 in interest.

My question is this, this calculation is based on me overpaying by £100 for the duration i.e. in this case for the next 18 years, 5 months. How do I from this output, calculate how much I’ve shaved off in interest and time if only overpaying this amount for the next year/month etc?

Thanks guy’s.

tegai1

bump
does anyone have any idea?

Julu

If you look on the mortgage calculators (first sticky), one of the calculators (has jeacle in the title) gives you he option of putting different variables in, which should answer your question

HTH

Ed_Zep

I know it wasn't what you asked but was wondering if you were in a position to remortgage? 6.08% does sound rather high at the moment.

Wookey

A single £100 overpayment at 6% per year = £6 saved in interest per year, x25 for the mortgage duration = approx £150 over the term of your mortgage, you will in effect then have £250 knocked of the mortgage amount (£100 overpayment + £150 in saved interest). You can calculate it out by whatever amount you overpay + the interest saved total, subtracted from your outstanding amount and the amount you currently pay per month, basically if you save yourself in overpayments + interest around 5.6k you will knock 10 months of your mortgage at your current rates.

tegai1

ed_zep = No we don't have the LTV anymore!! Well i don't think so anyway, bought the house in 2006 for £96,500, made improvements to make it worth £105,000 straight away! In 2008 it was valued at £115,000, so i'm thinking it's now worth £105,000 again. + i have a year of my fixed rate left and i would have a penaly to pay. (would be nice to get out now though and secure a lowish interest for 10yrs!! before they sky rocket out of control)


Wookey = Thanks - makes perfect sence :T