Made my first overpayment!!!

Benson · 10 June 2009 at 4:30PM

Mortgage to date: £115k
Rate: 6.19% fixed for 5 years (4 years left)
Mortgage term left: 9yrs

Ive been saving as much as possible into an ISA but they recently cut my ISA interest rate to 0.5% so I thought better to be off my mortgage than getting no interest!!

So ive just paid off £5800.00 off my mortgage to take to £109,200

Is there anything I can use to see what this will have down to my term, i called Abbey before transferring the money due to reading many threads on here that I wanted it to reduce my term not the payment.

Also I plan to put £500 away every month and then pay a lump sum to abbey every few months, I would like to know if i do this how quickly can I pay off my mortgage?

Ive tried using the calculators but unless im a complete pleb they don't show me this info, or am i using the wrong one.

I feel sooo good to have paid some off and can't wait to do some more!! Am thinking of starting to sell things on ebay/in local paper to boost my mortgage savings pot! Although its not a big sum I suppose every little bit helps doesn't it!

Ive got the bug now...........:j

littlemrtinkle · 10 June 2009 at 4:59PM

well done on your first overpayment

what you need is this Mortgage Schedule Calculator v1.7.xls

it will show you what effect overpayments have etc, you can find it on this site if you can;t pm me and i will send it on to you.

i would also contact abbey and see about changing term, with the nationwide this is free and you can lower mortgage meaning you can overpay more. Depends on the overpayment limit of your particular mortgage.

extra income have a look at surveys, match betting, competitions, daily clicks, topcashback and quidco for cashback when you shop online.

examine all household bills , Save money by switching utilities, consider a water meter , switch insurances etc

RosieTiger · 10 June 2009 at 5:46PM

Well done to you - it's a bug all right then infects deeply !

Catanddogs · 10 June 2009 at 9:00PM

hi i would be interested to know what your monthly payments are over 9 yrs?

Grumpy_Git_4 · 11 June 2009 at 9:09AM

Benson

Abbey will accept payments of £500 so to minimise interest you could pay this amount off every month, or as others have said, you can also ask them to reduce your term by upping your regular payments by £500. This obviously depends on how guaranteed your extra money is.

Nick.