Overpayment calculator - here

Sellifant

Thanks for this overpayment calculator have printed off a plan to aim for

Jpro

I actually linked this calculator on my companies blog! Great and easy to use tool. Thank you.

quanto2009

Hi
Got a mortgage with Nationwide just come off a 5 year fix of 5.6 % to 2.5%.
Mortgage was for £64000 a repayment in 2002 for 25 years
Overpayment of £13000 already that can be paid back
Balance £31000

Payments was £337 and now will be £270

Want to keep paying the £337 to overpay and try to over by additional £1000 a year.(there is no overpayment restrictions in place).
I have been in and out of work recently on temp contracts and would like to get rid of the mortgage asap .
I have £10k in savings
SL endowment due to pay out approx £16000 in 2016 not sure about MEP.cost £45 per month cash in value of £12000

How quick would I pay this off
1.with the overpayments and endowment?
2.adding in the 10k savings but may need this as fallback?

Im no good at these overpayment calculators

Thanks

land_lordy

hi folks just lookin for a bit of advice here.....
I am selling my second home that i use for a buy to let.. and plan on ultra aggresivly paying off my current mortgage...I have just over £100.000 left on my 24 year mortgage.... I pay bout £530 the now in mortgage payments. But have calculated if i overpay £1038 each month on top of my £530, mortgage will be gone in 6 years ( just about the same time as profit from buy to let house)... My question is does 10% overpayments include your current monthly payments? My mortgage is with the bank of scotland...... thanks in advance..... will get an appointment with the bank to see about this bout hoping someone might know here :-)

Millennium

Hi all

I recently got notification that my mortgage has been moved to a new system with Halifax. It does look better to be honest as I can now see a breakdown of sub-accounts.

I have 7 sub-accounts with interest rates as follows:

1 - 3.99%
2 - 3.99%
3 - 1.39%
4 - 1.39%
5 - 1.59%
6 - 1.59%
7 - 5.99%

If I just make regular over payments the payments are spread equally between each sub-account, but if I make a lump sum payment I can specify which sub-account is paid. Obviously I want to pay of the balance at 5.99% first followed by the next highest interest rate.

This is a bit of a pain as I will have to make monthly or two-monthly 'lump-sum' payments rather that changing the direct debit to an overpayment each month.

As interests rates change in the coming years I will revise my strategy! For example, if savings interest is higher that the mortgage interest on special deals it might be worth creating a lump sum fund in a savings account.

I hope I'm not teaching anyone to suck eggs, but I thought it would be useful to post!

I can't start paying this off yet as I have 12 months to go to clear credit cards (all at 0%!), but the mortgage is the next challenge!

I should take just under 10 years to pay off once I start.

Draved

I started overpaying my mortgage 12 months ago (£100pm). I set up and transfer it manually every month.
I called the Halifax last month just to check how it all works out and they readjusted my monthly payments by £3pm !!!:o

I'm still not entirely sure how it all works so any advice would be appreciated.

I am still overpaying by £100pm but I suppose what I've actually done is begun overpaying £97pm?

Paying an extra £100pm shaves 10 years (ish) off my £170k mortgage. Should I just keep overpaying and not asking the Halifax to recalculate?

Will my term reduce on its own or do I need to get them to reduce the term and increase my mortgage payments?

Being on the Halifax SVR of 3.99% does anyone know when interest is calculated in case I want to pay a lump sum and when the best time is to do it?

Calfuray

Draved wrote: »

I started overpaying my mortgage 12 months ago (£100pm). I set up and transfer it manually every month.
I called the Halifax last month just to check how it all works out and they readjusted my monthly payments by £3pm !!!:o

I'm still not entirely sure how it all works so any advice would be appreciated.

I am still overpaying by £100pm but I suppose what I've actually done is begun overpaying £97pm?

Paying an extra £100pm shaves 10 years (ish) off my £170k mortgage. Should I just keep overpaying and not asking the Halifax to recalculate?

Will my term reduce on its own or do I need to get them to reduce the term and increase my mortgage payments?

Being on the Halifax SVR of 3.99% does anyone know when interest is calculated in case I want to pay a lump sum and when the best time is to do it?

Draved - there are two ways to apply overpayments you make:

1) the bank will apply the overpayments to reducing your term, so your monthly payments will stay the same but the term will reduce
or
2) the bank will apply your overpayments to the monthly amount, which will reduce the monthly amount you pay but the term will stay the same.

From what you are describing, it sounds like Halifax is doing option 2, hence your monthly payments have reduced by £3 as they have reduced your monthly payment using what you have overpaid, stretching over your term is what makes it a small amount.

If you want to reduce your term, you would need to phone and ask them to do option 1.

HTH

Draved

Calfuray wrote: »

Draved - there are two ways to apply overpayments you make:

1) the bank will apply the overpayments to reducing your term, so your monthly payments will stay the same but the term will reduce
or
2) the bank will apply your overpayments to the monthly amount, which will reduce the monthly amount you pay but the term will stay the same.

From what you are describing, it sounds like Halifax is doing option 2, hence your monthly payments have reduced by £3 as they have reduced your monthly payment using what you have overpaid, stretching over your term is what makes it a small amount.

If you want to reduce your term, you would need to phone and ask them to do option 1.

HTH

Ok, thanks.
What has my £1200 overpayment done then? Taken the overall capital down?

What if I just keep making the £100pm overpayment and not get them to recalculate or will they recalculate anyway?

Calfuray

It seems they have spread that overpayment on your monthly amount over the remainder of the term, i.e. they've used it to reduce your monthly payment by £3 each month.

If you leave it as it is just now, your monthly payment amount will reduce and reduce. I'm not sure if they would recalculate eventually or what they would do, you'd need to give them a bell and double check

Draved

That's what it looks like when I calculate £3 by the amount of months on the term left. They would have to take it off the capital owed though as they can't predict future interest rates surely?

I'm on hold on the phone now.