Overpayment calculator - here

Hurdler

I have to admit I have been thinking about my strategy once I get my recalculated amount. Previously I just overpaid and reaped the reward at the end of the next year with a lower rate (and then set a manageable fixed repayment)
My mortgage is a lifetime tracker with Woolwich, no overpayment limit, £250 admin fee to redeem.

I left my old job on a Voluntary Redundancy and am still hoping to squeak in an overpayment (but My new company missed me off the payroll cut) so I am relying on my VR money still!

I am debating leaving my monthly payment as it is and then overpaying by monthly amounts when I can so that if the rates go up in the next year, I can still aim to overpay by the right monthly amounts and colour bricks off my spreadsheet house!!!

Otherwise I think that if I want to understand what any rate change has on my balance (including overpayments) will mean a complete recalculation from Woolwich!!

The other thing that worries me is that at the moment I can see my mortgage in my Barclays Internet banking, because I am a Premier customer. But standard banking customers with Woolwich mortgages can't see that or the option to overpay into the mortgage. They are changing the rules of Premier qualification and if I lose that, then overpayments are gojng to be just a little trickier!

tomloaf

Hello

I need some help as my head is spinning with the maths
My now wife and I have recently come into a little bit of money after our wedding about £4500. We currently owe about £60,000 left on our mortgage and I would obviously like to use this money to pay off some of this. We currently have a repayment fixed rate mortgage at about 5.5%. We can only pay back and extra of 10% off each year and have already done this. If we pay over that the extra money is charged at 4%. Do I use this money to pay off some of the mortgage now or pay it off in the New Year as we still have another 2.5 years left on the current mortgage deal before going variable

The next question is I will be inheriting some money as my father dies recently. We are looking at moving in the next 6 months so do I use the money to pay off the mortgage as soon as I get the money (again being charged 4% and an early repayment fee of about £3000) or do we just use it as part of the deposit for the new house

Help with working would be useful

Thanks
Tom Smith

shaneshaneshane

In your case. I would keep the money in the best possible account (Highest intrest, isa etc) and then use it for moving fees etc then whatevers left post move, put in the mortgage.

missjy

Hi just looking for some help with Locoblade's fab spreadsheet please. I input the starting date as Sept 2011 but it insists on showing the payments in the next tab from 2012?!

*Ignore me, I've just figured out what I'm doing wrong!*

drevilc

Hello All, just wondering if I was doing the right thing or not?

I have two interest only mortgages, £32.3k & £13.6k, both with Nationwide and on variable base rate (0.5%) which is currently alot better than the (5.99%) fix I was on. Not planning on ever moving house.

Currently I put aside £400 per month aside, minus the interest approx (£67 + £28 = £95) and put the remaing £305 into a savings account, then the next month when I have £610 I pay off one mortgage. Nationwide then reduce my interest amount instead of the term. The interest goes down about a few quid or so. I up the £305 amount, and repeat the process to the other mortgage.

The question is, financially which would be more beneficial,
to work on paying off the larger mortgage first,
or possibly pay each mortgage £150 each month and when I can pay £500 reduce the interest rate.
or am i doing the right thing now.
or maybe another idea?

Thanks.

david78

hi drevilc

If both mortgages are 0.5% it doesn't matter which one you overpay, or whether you overpay both.

Why do you pay £610 off your mortgage every two months? If your savings account is earning (after tax) a rate greater than your mortgage rate its better to build up the savings pot instead.

Then, in the future, when the rates on the mortgage are greater than the rates on your savings you can use your savings to pay off a larger lump sum.

P.S.
Nationwide reduce the interest payable and keep the term the same because this way they earn more interest from you.

Radsteral

when i got my mortgage , i was advised i should never opt more than 25 years term, but i wasnt the one that i could choose as no many would lend to me

last year and this year i have overpaid 10 thousand each year, mainly as saving account giving you peanuts.
i couldnt believe it it was all butter , when i discovered the mortgage calculator;) its telling me i ve saved some 58 k on overpayments....which was great news....till i sav the box in red..WITH YOUR 2 OVERPAYMENTS YOU STILL GOT 302K TO PAY.!!
!!!!!! !!!
I ll keep 5 k deposit on my bank just in case and every penny putt in the mortgage, hopefully in 15 years (when i m 50) i should be free bird!

Twiddy

Good stuff Radsteral, keep up the good work!!

T

trix-a-belle

Many thanks to those who have developed the various overpayment calculators. I'm in the lucky position that I don't have a particularly large mortgage (just a nice loan to the parents) and the overpayment calculators have allowed me to set my monthly overpayments so that I will be as near as damn it mortgage free by the time my fixed rate ends in 2016

moomi

Woo what an exhausting thread, but very interesting! I'd like to ask you all for some guidance please, I have a fixed rate @5.79% on £69,099 and when we moved to a bigger house we took an extra £32,401 on a tracker rate(currently 1.040% over 22 years.Current total owing is £93,520.46 and my last statement says 19 years & 1 month remaining, though that was dated 31st march 2011. For the sake of making overpayments, how would I enter this into a calculator please? I'm hoping to make overpayments to the value of what our original payment was when we took out the mortgage, so around about an extra £75 a month