Overpayment calculator - here

Joyful

As no one has replied to my request for a calculator perhaps someone can advise me of the following.

I have a £75000 mortgage. My payt should be £615.23 at the moment but I am overpaying by 6% so my payment is currently £652.14. This has another 17.5 years to run. If each year in February I increase my payments by another 6% how quickly will I pay off my Mortgage?
Thanks in advance to all the mathematicians.

Gorgeous_George

I've knocked up a spreadsheet that you can have if you pm me your email address.

GG

Joyful

Replied
Thanks.

Joyful

Hi GG.

Did you get my email? I have not been able to get the spreadsheet to do the calculation I posted above.

setmefree2

This one's goodhttp://www.fool.co.uk/mortgages/calc...arlyrepay.aspx?

fedupbeingbroke

BRILLIANT, THANKS FOR ALL THE INFO. I'VE JUST WORKED OUT THAT IF WE PUT AN EXTRA £50 PER MONTH TO OUR MORTGAGE WE WILL BE MORTGAGE FREE 2 YEARS EARLIER THAN PLANNED AND SAVE OVER £4000 !!!!!, WE'RE GOING TO USE THE MONEY WE SAVE ON OUR SHOPPING EVERY MONTH, WE ARE BEING TRUE SCOTS WHEN IS COMES TO SHOPPING NOW AND ARE WATCHING EVERY PENNY, BUYING CHEAPER BRANDS WHENEVER WE CAN, AND MAKING A LIST OF WHAT WE NEED BEFORE WE GO. I EVEN MANAGED TO GET MY HUSBAND TO TRY TESCO VALUE SHOWER GEL (14p) COMPARED TO HIS USUAL LUXURY BRAND FOR OVER £2 (NOT A HAPPY CHAPPY) AND BELIEVE IT OR NOT WE ARE SAVING ON AVERAGE £20 EVERY WEEK. OUR LITTLE GIRL IS EVEN GETTING INTO THE SWING OF THINGS, SHE TAKES HER CALCULATOR ON THE WEEKLY SHOP SO WE KNOW WHEN WE ARE GETTING TO OUR TARGET. WE'RE NOT EVEN DOING WITHOUT THINGS, JUST BEING VERY CAREFUL WHAT WE BUY....IT'S BRILLIANT

setmefree2

Good luck fedupbeingbroke:T:T:T

angelavdavis

The_Only_Homer_Simpson_UK wrote: »

Hi all
have tried to use the various calculators but cannot seem to get the right details
We have an endowment mortgage ( paying out 2010 and 2012 and will cover mortgage)
There is approx 17K left outstanding
interest rate is currently at 7.31% variable
monthly payment is £95.00 however am paying in £200 per month ( overpayment of £105 per month)
Mortgage term is up in 2012
have some savings

Should I pay off or continue as now ?
Any guidance appreciated

Hi, the long and the short of it is that it depends on your situation, but personally, I would at least get yourself on a fixed rate or offset mortgage (are you a high tax payer? You could put your savings into an offset mortgage to lower the rate but can get to the savings if you need to, although you won't get interest on your savings, minus tax, you will get lower mortgage interest).

The rate is pretty high - you could even get an unsecured loan for a lower rate for £17k (obviously depends on your credit score, ability to pay, etc).

Why pay more interest if you don't have to?

Do your projected endowment values exceed your savings? If you pay off the mortgage now (saving the interest you would have paid) and use the endowments as savings when they mature, will you be any better off?

I would look at all these factors.

angelavdavis

EmberJDIns wrote: »

I'm making a mortgage overpayment on my 5 year fixed rate. One year into the 5, mortgage over 17 years, the interest is calculated on a daily basis. I was surprised to see only a small reduction in my repayment mortgage total amount owed, have been paying £140+ extra a month for 6 months. Is making overpayments on a fixed rate still a good idea?

I know what you mean, I am in the same position with my current mortgage which ends November. On 12th October (MFiT balance day!), my mortgage balance was £126,685.86, I then made my application to switch my mortgage yesterday and was dismayed to hear that the current balance yesterday, with the daily interest charged was 128,227.88!! Bearing in mind that I have been overpaying £500 per month, its disheartening.

Feedback from Groatie queen on the Mortgage free roll of honour was that earlier in the process, it is disheartening as your bottom line doesn't change much but it will get better, so I trust their judgement!

You can make the most of it by making the overpayment as soon after the previous months mortgage payment as possible. This will lessen your daily calculated interest for the month.

deaks_2

Ok, I'll try to get this right, rang Cheltenham and Gloucester tonight re overpayments...
Basically if I overpay by £1000 or more at any one time (I wish!!) - this counts as a capital repayment
If I overpay by less than that at any one time, it sits in an account alongside my main mortgage account and can be used to pay the mortgage if we get into trouble and can be used by us to pay the normal mortgage payment at any time.
We have a C and G tracker so I guess this is not the same for everyone, but thought I would post to see if it helps anyone.
Basically I guess the overpayments of less than a £1000 a time act a bit like a mortgage protection, as we can call on them if we need to?
Both types of repayment are calculated against the account daily and reduce the interest owed.
Would never have known if I hadn't called them.
Hope I have explained this properly, but if not shout and I can add more detail
cheers