Overpayment calculator - here

_dave__4

crockpot wrote: »

... most calculators do not like my figures! Borrowing too little.

Did find 1, but would not let me put my savings balance in.

Can anyone point me in the right direction? something simple if possible,not very techincal!

What specifically were you trying to calculate?

Eg the monthly overpayment required to reduce mortgage to zero over 5 years, keeping savings intact?

Or the monthly overpayment required to reduce mortgage to the same level as savings (net balance zero) over 5 years?

John_Mal

Thefunkygibbons wrote: »

There are several of these

Here is one

http://www.channel4.com/money/homebuying/overpaycalc.html

They demonstrate the benefit of overpaymenst in terms of interest saved and term cut off the mortgage

There are others, add them to this thread

EDIT: location changed

I'm new and not sure what to do...but my bank suggested that instead of paying my mortgage off 70k from the sale of my Mum's house, I should continue to pay the 500pcm via an overpayment account (an off-set account). I was blinded with mathematical models and it was very glossy and tax free.

I ended up confused and walked away.

1. Is there a benefit in me doing an off-set?
2. Should I just pay it off?

Thanks John

crockpot

_dave_ wrote: »

What specifically were you trying to calculate?

Eg the monthly overpayment required to reduce mortgage to zero over 5 years, keeping savings intact?

Or the monthly overpayment required to reduce mortgage to the same level as savings (net balance zero) over 5 years?

The monthly overpayment to reduce it in 5 years.

I have some savings in offsett, but most of it will be withdrawn and used, I put so much a month away to cover mot/service/insurance etc, it builds up but it then gets drawn out to cover annual bills, if you know what I mean?

savings are there to reduce the interest i pay, not the mortgage.

Thanks

Locoblade

John_Mal wrote: »

I'm new and not sure what to do...but my bank suggested that instead of paying my mortgage off 70k from the sale of my Mum's house, I should continue to pay the 500pcm via an overpayment account (an off-set account). I was blinded with mathematical models and it was very glossy and tax free.

I ended up confused and walked away.

1. Is there a benefit in me doing an off-set?
2. Should I just pay it off?

Thanks John

If you can save the money at a better interest rate (after tax - this is the important bit) than your mortgage rate, then it would be worth saving rather than put it in the offset, so depends on your mortgage rate really. If your mortgage rate is say 5% then you'd need a taxed savings account of around 6.5% to see a net benefit assuming you're a basic (20%) tax payer.

If your mortgage rate is higher than you can achieve in savings, then offsetting would be best, but you need to put in the lump sum straight away, not dribble it in £500 a month.

_dave__4

crockpot wrote: »

The monthly overpayment to reduce it in 5 years.

I have some savings in offsett, but most of it will be withdrawn and used, I put so much a month away to cover mot/service/insurance etc, it builds up but it then gets drawn out to cover annual bills, if you know what I mean?

savings are there to reduce the interest i pay, not the mortgage.

Thanks

You could try this one...
http://calc-calc-calc.net/get/calc/Mortgage-Offset-Payment/

Does that one work?

Eg if loan outstanding is 30,000, offsetting an average of 1,000 with an interest rate of 6% over 5 years:-

http://calc-calc-calc.net/get/calc/Mortgage-Offset-Payment?l=30000&o=1000&i=6&t=5

cyberelk11

Having previously had an Abbey mortgage I was a huge fan of the "Show Me" button on their online system. When overpaying a lump sum or increasing monthly payments, next to the "Submit" button there is a "Show Me" button to see the effect before committing to it, with a nice graph and some statistics.

I actually wanted something a bit more involved, with the ability to take ISAs, fixed term deposits, and anticipated salary changes and 0% credit card pay-offs into account.. so I wrote one.

I've written it up here:
http://cyberelk.net/tim/2008/10/07/expendable-tutorial

It can also work out things like drip-feeding a regular saver from an instant access savings account.

You need Linux to run it (sorry), and it currently only knows about repayment offset mortgages because that's what I have experience of.

Hope someone else finds it as useful as I do.

v.rajput

I too have a .89% above base rate mortage, with approx 20yrs left, again this is for the term of the mortgage.
I am not a high earner, but at 36, i have left the armed forces with a pension and have a full time job.
Between my wife and I, we have ticked all the right boxes with saving ie ISAs, Internet savings etc.
The interest from our savings is overpaying our mortgage.
We borrowed £133k about 5yrs ago. I am overpaying £400.00 a month, after discussing this with the Halifax we should be mortgage free in just uner 10yrs. We have overpayed for the last 3 months.
However, we also want to move and i am concerned that having more equity in our current property is not a good idea, but rather have a large cash deposit, would be better.
The house had been on the market for 3 months, but everyone is rel!!!!ant to buy.

I really am stuck. In one way i want to be debt free, but on the other i dont want to overpay and the money gets stuck into the house.

mezelks

Fab!
If I overpay by £200/month, I'll be done in 19yrs instead of 29!
That's amazing when I'm only 22!

Locoblade

savlad wrote: »

That's a fantastic spreadsheet. It's really useful, thanks for sharing it.

Just to note that the original spreadsheet linked there isnt the latest one, so best follow the link to the seperate thread as the latest version has been significantly modified and improved. :beer:

katew87

Hi

Im looking to find a calculator which will show me how long it will take me to pay off a 150k mortgage if I overpay by 10% every year untill its down to £0. Does anyone know if theres a mortgage calculator which can do this?