Overpayment calculator - here

me-charlotte

i've been looking into making overpayments and would like to try and pay it off in 10 years, we currently have a 108k mortgage on a reduced tracker currently paying 3.19 interest, we've got this deal until september 2012 our mortgage has 36 years and 5 months remaining. i've been putting our figures into the mortgae calculators and have found out that if i pay a £600 overpayment each month i would be MF in 2022 and would have saved a masive £57,454 in interest.

All i've got to do now is twist OH arm to agree to it!

moneyman75

Here's my recommendation for a great mortgage calculator with full overpayment features which I have been using for a while now:

This one is an iPhone app called 'My Mortgage Mentor'. There are loads of mortgage apps on the store, but this one is by far the best I have found. Its easy to use and has loads of features, best of which is the ability to include overpayments. It is totally flexible, so you can add regular overpayments, or one off overpayments at any point in the loan.

It also has lovely graphs too, which make it easy to see at a glance how the figures stack up. The only downside I can see is that it does not take inflation into account.

anh1904

Does anyone know when a mortgage has a limit of, say, 10% overpayment in a year, whether this can be made as a lump sum on the first day of each year, hence saving the maximum possible interest?

I suspect it will be tied up in the Ts and Cs, but fear these will be ambiguous, and I do not want to attract any unnecessary penalties.

Peonie

I have developed a spreadsheet to chart my mortgage and which allows me to input any overpayments I make. I have just one problem (that I'm aware of), when I input an overpayment the end date stays the same and the monthly payments reduce. In the past I've manually reduced the term until it looked right. There must be another way.

Can you please tell me a formula that will reduce the term?

I have looked at one of the calculators on this thread and cannot work out how they have done it.

Thanks.

Marksy

anh1904 wrote: »

Does anyone know when a mortgage has a limit of, say, 10% overpayment in a year, whether this can be made as a lump sum on the first day of each year, hence saving the maximum possible interest?

I suspect it will be tied up in the Ts and Cs, but fear these will be ambiguous, and I do not want to attract any unnecessary penalties.

I used to do that. It'll only work in your favour if your interest is calcualted yearly (which, is unlikely). Check your documentation. If your interest is calculated daily/monthly then the more frequent the payments, the more you'll knock off sooner, saving more interest in the long run.

I had to ask to confirm, as I wasn't sure - I can't believe the past few years I've been doing this - when I could have been reducing the term even more, if we'd have been splitting the yearly sum into 12, then paying it off monthly.

Morgage_Confused

Marksy....are you sure about that info?
I would have thought the quicker you pay any capital off the less interest would be charged. So lump sum at the beginning of the year will always be better than splitting it into 12 monthly payments. Im not certain though can anyone comfirm this?

thanks

BoxerfanUK

My BS (the Leeds) still calculates interest annually.

Its been a bit complicated for me to try and work out exactly what I should overpay and when it will be paid as I have two parts to my loan, one of which ends four years earlier than the first. Does anyone know of a calculator where I can enter the two dates that both parts of my mortgage is going to end and then play around with overpayments.

As i'm currently on a fixed rate I can only overpay 10% of each loan in any one year without penalty. Also I have to overpay a minimum of £1000 at a time in order for them to re-calculate the interest immediately. I'm overpaying by £650 per month so what I do is every two months I phone them up and overpay a lump sum of £1300, plus whatever else I can save in that time. Its going to knock approx 12 years off my mortgage and save me about 60K in interest. I say approx coz I can't work it out exactly.

Every time I make an overpayment I ask them to reduce the monthly payment and keep the term the same, then every time my monthly payment reduces (which is every two months) I add the amount which my mortgage reduces to the overpayment. I do it this way so that my monthly amount is gradually reducing and although I then up the overpayment amount, if anything unforeseen happened such as loss of job etc I would be able to temporarily put the overpayments on hold until I could manage to overpay again.

Does this sound like a reasonable way of doing things or can anyone suggest a better way?

TinkleToes

Karl has changed this link to

drcalculator.com/ mortgage/uk/ But as a 'Newbie' I am unable to type the correct link as 'links' are not allowed
:j

xtra_time

I can overpay 10% on my mortgage and I expected the monthly price to remain the same but they said this would fall as if it stayed the same it would go over the 10%. Does this sound right? Would it be better to overpay less and keep the difference it in a savings account but keep the same monthly payments as I am now?

alfiesmum

xtra_time wrote: »

I can overpay 10% on my mortgage and I expected the monthly price to remain the same but they said this would fall as if it stayed the same it would go over the 10%. Does this sound right? Would it be better to overpay less and keep the difference it in a savings account but keep the same monthly payments as I am now?

Generally a lender will re assess your monthly payments every year. Once you've paid your 10% allowed, if they do NOT lower your monthly payments, then each month has a little overpayment in it too. Woolwich are one of the ones to recognise this most recently, and they now amend your monthly payment after every overpayment.

I'm in the same dilema as yourself. I have no idea how to work out which is the more cost effective way to overpay? If they're going to lower my monthly payment each overpayment I make, would I be better off saving them all up, and paying later on down the line, thus keeping my monthly payments higher for longer?! Personally anything that means I deal with Woolwich less times, has got to be the better option!