Overpayment calculator - here

moneyman77

Prepayments have been a key in getting my clients to pay off their mortgages quicker....Here's a few

http://www.free-your-money.com/mort_calc.htm

angelavdavis

superflygal wrote: »

Hi folks,

may sound like a dafty question, BUT how do you go about overpaying? Do you need an account number etc to set up a standing order into your mortgage account? Do you have to phone the lender for the details?

Doh!
Superflygal x

It depends on the lender. Give them a ring and find out what the process is and what your terms are, some lenders restrict you, some allow you a certain percentage or maximum sum of overpayment, etc.

If you are allowed to make overpayments, the lender will provide you with the account details.

I personally set up a standing order into the account, I also pay over the counter any extra £s I might have coming in (cashback cheques or Mortgage pig savings) and also transfer additional funds when I can electronically on an ad-hoc basis, but I don't have any limits to my overpayments. Some money goes into my offset, other funds I transfer directly into the mortgage account to pay off capital.

Lea37

Hi.

Great thread.

We have around £25,000 left to pay on a £30,000 mortgage. We are about 4 years into a 25 year mortgage and our deal is 7 year fixed paying 5.15% interest (I think) and it is daily. We paid off 10% in a lump sum last year and were intending on doing the same again this year but after reading this thread i'm wondering if we'd be better off paying extra each month to the equivalent of 10% a year? The money is not in any high interest accounts or anything. We'll probably take it from our Premium Bonds worse case scenario.

Any thoughts or advice?

Thanks.

angelavdavis

Although its likely your lender sets your repayments annually, prior to my remortgaging to an offset, I was on a fixed rate, and I found it reduced the interest paid if you pay monthly, rather than annually.

If interest is added daily (as mine was) I would say, you were better off paying it monthly, rather than waiting for the anniversary update.

meiradeco

This maybe draft but do any of the calculators allow you to factor in the fact that you have a a mixed mortgage ie some repayment and some interest only. We did this as it was our first mortgage and wanted the comfort factor of lower inital as we knew we had a lot of work to do on the house.

Most of the work is now done so (except garden impossible whole different thread) so we are focusing on the mortgage reduction.

We are trying to set up a payment schedule to pay back the interest only section as well as looking for ways to over pay the total to reduce the term.

As soon as we can we will be moving to a total repayment mortgage.

At the moment we are just overpaying as much as we can at the end of each month and it would be good for motivation purposes to see the effect of this additional money.

So if one of the existing tools does this please advise which one and how I can use it? or refer me to one that does allow this.

Thanks in advance for your help.

John_LG

Lea37 wrote: »

Hi.

Great thread.

We have around £25,000 left to pay on a £30,000 mortgage. We are about 4 years into a 25 year mortgage and our deal is 7 year fixed paying 5.15% interest (I think) and it is daily. We paid off 10% in a lump sum last year and were intending on doing the same again this year but after reading this thread i'm wondering if we'd be better off paying extra each month to the equivalent of 10% a year? The money is not in any high interest accounts or anything. We'll probably take it from our Premium Bonds worse case scenario.

Any thoughts or advice?

Thanks.

if interest is calculated daily, I would imagine paying as much as you can, as early in the year as possible would be the best case scenario in terms of moneysaving. However it depends on whether your cash flow allowed it, or whether monthly contributions are easier to manage/afford.

jennywren1_2

I'm new on this board and looking for some advice.

We're currently 6 months into a 5-year fix at 6.49% (125% LTV hence the high rate - that and bad timing!).

We also have approx £20k on various credit cards - all on life of balance transfer rates. Of this a small amount is at 6.9%, the rest is at between 4.95% and 5.8%.

We're overpaying by £150 a month on the highest rated card, and planning to make changes so we can at least double that from next month.

My query is what do we do after the highest rated card has been cleared? As the mortgage is then the next most expensive debt we have it seems obvious that overpaying on that will save us the most money. BUT that means we'll be left with credit card debt indefinitely - or at least until after we've got rid of the mortgage, which is almost the same thing (best estimate at the mo is that we could be mortgage-free in 16 years).

So should I be paying off the credit cards first despite them being at a lower interest rate?

Thanks

Capricorn_One

Here you go, Meiradeco.

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

Regards, Ed.

meiradeco wrote: »

This maybe draft but do any of the calculators allow you to factor in the fact that you have a a mixed mortgage ie some repayment and some interest only. We did this as it was our first mortgage and wanted the comfort factor of lower inital as we knew we had a lot of work to do on the house.

Most of the work is now done so (except garden impossible whole different thread) so we are focusing on the mortgage reduction.

We are trying to set up a payment schedule to pay back the interest only section as well as looking for ways to over pay the total to reduce the term.

As soon as we can we will be moving to a total repayment mortgage.

At the moment we are just overpaying as much as we can at the end of each month and it would be good for motivation purposes to see the effect of this additional money.

So if one of the existing tools does this please advise which one and how I can use it? or refer me to one that does allow this.

Thanks in advance for your help.

needtoearnmoremoney

I have an interest only mortgage of £115000 with 8 years to run. The idea was to sell the main home which has a £120000 mortgage on it but worth about 400000 and use this to pay off on the smaller house. However my husband has now decided that he doesnt want to be a couple as such and wants us each to live in one of the houses.

I'm trying to sort out finances as both mortgages are in joint names.

Is there a mortgage calculator that just looks at interest only?
I've worked out how much to overpay on the other (if only i can afford it ) and have realised even £50 a month will help.

arealbasketcase

hi needtoearnmoremoney

I have a spreadsheet that works out overrepayments, I have had a play and adapted it a little, if you pm me your email address I can email it to you.