How much would I need to overpay?

steph123steph

I dont know if Im asking too much of a calculation here, but Im hoping someone might know as there seems to be alot of good info floating about in here :-) My mortgage balance as of a couple of days ago was £53,251.82, My monthly payment is only £310.61, without any overpayment, but Im wondering how much overpayment I would have to make each month in order to clear my balane within 10 years.... My current intrest rate is fixed until 2013 @ 6.3% !!! I will assume that at the end of my fixed rate, I will shop for a similar deal then? Thanks in advance for any help xx

george_jetson

Have a look at the sticky at the top of this forum - there are several overpayment calculators there where you can see the startling effect that even quite modest overpayments can have over the long term.

Have fun…

steph123steph

thanks you x

JayZed

By my calculations - or rather, by the calculations of Karl's Mortgage Calculator - you need to pay £599.25 per month (i.e. overpay by £288.64 per month on top of your existing payments) to pay the mortgage off in exactly 10 years. That's assuming that the interest rate stays constant at 6.3%

Gorgeous_George

With a rate of 6.3% you should be overpaying as much as possible at the moment. £1.037 per month would do it in 5 years but £600 is likely to be more achievable.

GG

steph123steph

wow that sounds great. I keep shuffling my outgoings around alot but Ive got my overpayment atm to be £220 per month, then once I have cleared a couple of small debts by overpaying them, I can shift the difference onto my mortgage! Its ironic, at the time I fixed at 6.3 the variable rate was 7% so I was apparantly getting a good deal! Sods law! But never mind, I will get there eventually, the banks directors must be very happy chappies!! x

black_taxi_2

heres a good calculator on-line

simple---years or overpayments

http://www.whatmortgage.co.uk/calculators/fleximortgage.html

steph123steph

thank you x