Overpayment confusing

kingsthorpe

Hi all,

I am trying to work out how much of my mortgage I can pay off in the next 12 months using overpayments. Ive tried using the overpayment calculators, but Im getting a bit stuck because the amount I can overpay goes up in august.

I have a mortgage of £44,000 at 5.39% so thats £296 pm

I overpay by £480 so that £776pm at the mo (I also save £150pm in an isa which Im not sure If I should put into overpayments as well), but in august I can pay another £250 a month as well.

I can't work it out using the calculators how much my mortgage will be in april 2010?

How do I work this out??? Its soooooo confusing!!!!

bunking_off

How long have you got left on your mortgage if paid at standard pace, approx 20 years?

By my maths, in absence of overpayments you'd owe £42730 in a year. By overpaying by that much you'll owe £34,800 and if you can keep it up will clear your mortgage in approx 4 years.

E&OE...

getmore4less

with overpayment calculators like

http://www.whatsthecost.com/mortgage.aspx

I just do multiple calculations feeding the amount owing from the detailed report into the next calc when there is a change.

Works for interest changes as well.

there is a spreadsheet available that will do this have a look here or in the other mortgage board, don't have a link to hand.

found it
http://forums.moneysavingexpert.com/showthread.html?t=1157173&highlight=loco

kingsthorpe

Thank you very much for that calculator. Have been doing it all day. Its quite exciting when you look at it. My aim is to overpay more now. Ive decided!!! I'm going to look at all my finances and see where I can get more money from!

StuartGMC

Agreed it is exciting, if not damn right addictive!

However, do take heed of the usual advice here to have your emergency savings in place, plus your on-going requirements for annual costs and those on longer term basis (e.g replacement car, windows, white goods etc). I have a household budgeting spreadsheet I can send you if you haven't got one; just PM your e-mail address.

Best wishes in your planning and implementation.

littlemissbossy

Being mortgage free is a great feeling and well worth the effort, Stuart is right though, don't leave yourself short - you never know whats around the corner. Good Luck to you.

kingsthorpe

Thank you again everyone for all your help:T. I can't stop thinking about it all, its so exciting. You are right in what you say about having 'rainy day money' for things. I am saving £250 a month in my savings account. Is that enough? and we have about £5000 in there at the mo. Im not earning as im a housewife at the mo with my 1 year old, so we only have my husbands money to play around with so dont want to stretch too much.

I have already put some bits and bobs on ebay yesterday. Ive sold 2 already :jNot used to ebay so it took me ages to work it out, so thats a few quid extra already.

I will have to set up a new thread when Im all sorted with my 'mfw' info on. I love a challenge!!:D

RosieTiger

You seem to be be doing all the right things - keep it up !

kingsthorpe

:beer: Rosietiger.
I've just been having at look at your thread you are an expert at all this. I will have to follow your lead.