How much will this overpayment affect the mortgage

Benson

We took out a £125k mortgage in July 08 on a rate of 6.190 over 10 years

We pay £1395.55 per month.

Is there a way of working out exactly how much we owe to date?

Also I have £3300 in my overpayment pot as we save £500 each month for overpayment but as we're with the Abbey its not the easiest company to overpay with every month so have been putting it in a savings account.

Would it be better to keep putting it into Savings and then possibly sending to the Abbey once we've received either the 5k or 10k mark or would £3300 actually make much of a difference?

Ive never overpaid on a mortgage before so its all a bit new to me

x

Grumpy_Git_4

I went in an just handed over a cheque in a branch, I was asked if I wanted it as a capital repayment, I said yes. I walked out.

For you it depends on interest rate on savings etc but I would think put it on the mortgage.

Easy.

Nick.

blueberrypie

Benson wrote: »

We took out a £125k mortgage in July 08 on a rate of 6.190 over 10 years

We pay £1395.55 per month.

Is there a way of working out exactly how much we owe to date?

There's a spreadsheet you can download from this site, but the easiest way would be to phone your lender and ask.

Also I have £3300 in my overpayment pot as we save £500 each month for overpayment but as we're with the Abbey its not the easiest company to overpay with every month so have been putting it in a savings account.

Would it be better to keep putting it into Savings and then possibly sending to the Abbey once we've received either the 5k or 10k mark or would £3300 actually make much of a difference?

Yes, it will make a difference, because you won't be paying interest on that bit from now until the end of your mortgage.

Check your mortgage terms and conditions. There will likely be a limit to how much you can overpay, and there will be a fee if you pay more than that. Sometimes it's still worth paying the fee, because the saved interest is more than the fee, but you need to work it out for your particular case.

It might also be that your mortgage allows overpayments annually, or once a month, or up to a certain amount per month or per year. You need to have all of that information before you can work out the best thing to do.

But in general, fees aside, unless you can get a higher interest rate paid on your savings than you are paying on your mortgage, it's better to overpay, and the sooner you overpay, the greater the impact on how much you pay in total.

dimbo61

Well you took a brave decision of taking a 10 year fix on what is a ( for me ! ) big mortgage.
After 9 months & therefore 9 payments you now owe about £118,063 pounds.
You will not get 6.19% from any savings account so contact the abbey and set up a standing order to make regular overpayments ( if allowed )
Also check if you can make a lump sum overpayment of the £3300 you have in savings ( please remember to keep an emergency fund 3/6/9 months of income )
GOOD LUCK

chelleybelley

try these
http://new.egg.com/visitor/0,2388,3_...w_1028,00.html


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


hope these help

just seen the egg link is having maintanence at the moment but it is a good one when back on!

MORPH3US

I overpay my HSBC mortgage by the maximum allowed each month (20% of the normal payment) and to do that I just called them and said I wanted to overpay and so they upped the direct debit (?) for me.....

The mortgage overpayment spreadsheet that is around somewhere is excellent.

Smithills

You may find it better to set up a standing order for overpayments. My mortgage is a direct debit- so it shifts as interest rates move. But my OP's go via SO, so I can up them, reduce them or change the timing as I wish- I don't have to speak to anyone. Not that I'm anti-social you understand!

RosieTiger

All the above is good common sense - talk to your lender and fight out how. Standing Order is better in my personal view, but either way with daily interest calculations the faster you pay the better for you.
Good luck but start getting the overpayments in !