Overpayment calculator - here

Welshlassie

mazzo wrote: »

hi all - happy new year! looking to become mortgage free one day! - but have a problem. mortgage is split in repayment and interest only have £45,000 as interest only and little means of paying it off. Got just over 12 years left on mortgage. Am in a position to pay extra £100 off each month.
Should i decrease the interest only part of £45,000 or just pay extra each month, so the repayment side will decrease! total mortgage is just under 64,000. on tracker mortgage so is currently £277.00 gone down quite a bit so can do the extra £100.00. Tried to ring mortgage company - but not much help.
May seem a silly question - but by paying extra does it touch the interest only side - or does all the extra go on the repayment side??
help! want to make 2009 debt stressless
thanks

When you make an OP ask for it to be allocated to the IO part, you will start to see it come down, especially if you keep the repayments the same as each repayment will slowly start paying off some of the capital as there is a smaller balance and therefore less interest.

The other option is ask for the IO to be turned repayment and see if you can afford the repayments the mortgage company say they will be.

Good luck whatever.

pickle

JoeShmoe wrote: »

Is there a good calculator for offset mortgages, including savings, overpayments etc?

I love this calculator for working out overpayments.

http://www.jeacle.ie/mortgage/

shell1000

does anyone know of an overpayment calculator with a term upto 35 years?? I can't seem to find one. Thanks

_dave__4

shell1000 wrote: »

does anyone know of an overpayment calculator with a term upto 35 years?? I can't seem to find one. Thanks

Hi Shell1000 - this calculator seems to take any term, even over 35 years:-
http://calc-calc-calc.net/get/calc/Mortgage-Overpayment/

HTH

Thriftysaver

Hi this is my first post, although I have been watching and taking hints for a while. This is a reply to shell1000 for a 35 year mortgage calculator. It' an American one but figures still same, just ignore $.

www.mortgageintelligence.ca/handy_tools_quick_calculator.aspx

I love using this calculator as I am in the process of changing my mortgage to accelerated weekly payments (paying 52 instead of equivalent 48 payments), so should hopefully have mortgage paid a few years earlier.

Hope this helps:j

flatmouse

Being a bit daft here i expect. I assume i need to check T&C of mortgage as to how much i'm allowed to overpay per year - but then, how do i overpay it?
They adjust the DD as interest rates change - do i just set up a standing order to they monthly for the amount i wish to overpay?
TIA

AdamBrunt

Another stupid question ... I am currently on a BoE -0.06% tracker (the 'discount' period ends in November). The remaining mortgage is for £130k with 24 years left.

1) With the BoE rate being 'unusually' low at the moment is this adversely affecting the result of overpaying according to the Fool calculator ? Or does the reduction in term come out the same regardless of IR ?

2) At the moment, my wife only works 1 day a week - and it looks likely to stay that way until our youngest (currently 3yrs old) starts school. Despite this we still seem to get by on our joint income. When the time comes that she might be able to work a lot more hours (3/4 days a week), are there any flaws in our plan (T&C's of the lender permitting) to put all of the difference in her salary into overpaying the mortgage ?

Welshlassie

flatmouse wrote: »

Being a bit daft here i expect. I assume i need to check T&C of mortgage as to how much i'm allowed to overpay per year - but then, how do i overpay it?
They adjust the DD as interest rates change - do i just set up a standing order to they monthly for the amount i wish to overpay?
TIA

Your best bet for finding this out is actually to call them and ask how. Some lenders will only allow payment over the counter, by cheque, etc, others are much more flexible and it can all be done on line. Which lender are you with there's likely to be someone around also with them who can help further.

Welshlassie

AdamBrunt wrote: »

Another stupid question ... I am currently on a BoE -0.06% tracker (the 'discount' period ends in November). The remaining mortgage is for £130k with 24 years left.

1) With the BoE rate being 'unusually' low at the moment is this adversely affecting the result of overpaying according to the Fool calculator ? Or does the reduction in term come out the same regardless of IR ?

2) At the moment, my wife only works 1 day a week - and it looks likely to stay that way until our youngest (currently 3yrs old) starts school. Despite this we still seem to get by on our joint income. When the time comes that she might be able to work a lot more hours (3/4 days a week), are there any flaws in our plan (T&C's of the lender permitting) to put all of the difference in her salary into overpaying the mortgage ?

Assuming you have 3-6-9 months worth of income saved as an emergency fund and no other debts, you have 2 options, you can try and find a savings account which after tax will give you a better rate than your mortgage and pay into that or pay off the mortgage (subject to the T&Cs as you said - call and ask is the best way of finding out).

If the interest rate falls below 0% theres a chance you'll be getting the mortgage lender pay you interest.

A quick win when you have a tracker is to keep your monthly payment the same as before the rates dropped and use this for OPing you'll be surprised what a difference it can make.

flatmouse

Thanks Welshlassie, i did indeed call them and on my deal i can't make regular overpayments. What i can do tho, is increase my normal monthly payment thus reducing the term - and no charge for this. So i've upped my monthly payments by £200pcm and now have reduced my term from 9yrs 3months to 7 yrs 11 months.
And if i found the money i can still pay up to approx £13k capital repayment this year.