Overpayment calculator - here

_dave__4

londonlife7 wrote: »

I am working out that my end date would be 9.9 ish years instead of 12.7

Sounds about right - looks like your savings would have reached £95000 after 32 months (£2000 x 32 + £31000) and would then exceed the mortgage balance, so you'd stop paying interest. Another 7.2 years would then pay off the remaining mortgage: £1083 x 12 x 7.2 = £93.6K.

londonlife7 wrote: »

Or 2.7 years if I use the capital in the savings account to pay of the mortgage when the amount exceeds the debt if you get what I mean.

Yep, 2.7 years sounds about right according to this:-
http://calc-calc-calc.net/get/calc/Mortgage-Overpayment/v1/?l=92000&i=5&t=12.7&o=2000&m=3083

Looks good!!

londonlife7

Many thanks Dave

All this banking chaos has really made me focus on getting out of debt and I reckon with the likely low interest rates for the next few years now is the ideal time as you can pay more of the capital/offset against.

Only issue will be to keep earning in a recession!

Thanks again

RoxieW

OMG - am totally gobsmacked! Can someone tell me this is correct and I'm not just getting the wrong end of the stick!

Current mort remaining - £56000
current term rem - 21 yrs
Planned lump sum payment - £9000
Planned overpayment - £500 per month

Term remaining reduced to 6 years!!!!

Am I going bonkers?

Welshlassie

Very likely, would need your interest rate as well to confirm your figures are correct, but they probably are! good isn't it
Edit to say: Didn't mean you are going bonkers

RoxieW

lol - thanks

munkachunka

Hi to all,

I am having a dilema and would like some advice from whoever can offer it.

I have just opened a current account with A&L with 8.5% interest on balances up to £2.5K.

An Offset mortgage of £133,640 @5.29%(currently paying interest only due to it being let out)

I have a balance transfer up to £12500 available @0% for 15 months with 2.98% fee.

I have a loan of 10000@ 10.5% over 36 month, settlement figure is £9500, loan currently has 30 months remaining.

Finally I am at my question.

(option 1) pay back my loan, putting £2500 in A&L account with the remainder off setting my mortgage, I will also pay the required £633 into my offset mortgage every month to pay the loan off in 15 months. At the end of interest free period either repay the virgin card or get another interest free card.

(option 2) pay back loan, put all other moneys into offset account.

(option 3) put all money into offset account.

(option 4) any other suggested options.

As you can see I do not have the mathematical knowledge to workout the values of each option, I do not know when the break even point is between offsetting and interest gained in savings due to tax etc.

one other question, does it make any difference if I make over payments or simply have a positive balance on my offset account?

Any help would be greatly appreciated. thanks

Fatpants

Hi

New here and after a bit of advice as not very mortgage savvy.

We currently have a two year tracker deal with Nationwide taken out in Sept 2006. Current deal comes to an end in Sept 2009. When we took out the mortage, house was valued at £225k and mortgage was £200k.

Obviously house prices have dropped dramatically and I'm worried we may have the porblem of negative equity when it comes to getting a new mortgage deal in 2009. Due to the current rate drop we can afford to overpay £100 month on the mortgage. Will this help us out in Sept or does it just cut the length of the mortage?

Advice greatly appreciated

Welshlassie

Fatpants wrote: »

Hi

New here and after a bit of advice as not very mortgage savvy.

We currently have a two year tracker deal with Nationwide taken out in Sept 2006. Current deal comes to an end in Sept 2009. When we took out the mortage, house was valued at £225k and mortgage was £200k.

Obviously house prices have dropped dramatically and I'm worried we may have the porblem of negative equity when it comes to getting a new mortgage deal in 2009. Due to the current rate drop we can afford to overpay £100 month on the mortgage. Will this help us out in Sept or does it just cut the length of the mortage?

Advice greatly appreciated

Just need to check you said a 2 year deal taken out in Sep 06, that would have finished in Sep 08, not Sep 09, did you mean 3 year??

Regardless of that, £100 per month should help for your remortgage if you have a repayment mortgage, if it is interest only it will still help, but not really take a large amount off the capital. Plug you figures into a repayment calculator and see what they say.

Any money you can pay off the capital will reduce the term, but will also reduce the interest you pay and the amount owed.

organic_choc

I'd been overpaying for the past year or so and the total I have paid is equal to roughly 7 months worth of my original monthly payment.

I am with Alliance & Leicester. In terms of overpayment the product allows me to pay up to 10% of the amount owed in a lump sum each year in January. I am also allowed to pay up to £499 per month (but I think they charge me 3% for Early Repayment). I would like to get the length of the mortgage shortened but how do I do that? Do I have to tell them what I wanted? Or would they do it automatically?

I realise they also charge people an "Redemption Administration Charge" at £295 if they paid up their mortgage early. Is there any way to avoid it or lower it?

deefadog

As long as you are still paying the original monthly payment and you have over paid then the length would shorten automatically. I have over paid around 20k in the last few years on mine and have worked from one of the calculators on here shows the reduced years. Obviously if your fixed and the payments pay off the mortgage within this period then you may be charged. I am way off from this yet but something to note.