The Ultimate Mortgage Calculator discussion

daiwhite8886

Hi Guys,

Am i missing something but i don't seem able to see a graph showing reduction in monthly cost?
I know by making over payments i can see a decrease in term length and then a saving in interest paid, but what if i wanted to see a reduction in payments.

Thanks
Dai:beer:

Mobeer

daiwhite8886 wrote: »

Hi Guys,

Am i missing something but i don't seem able to see a graph showing reduction in monthly cost?
I know by making over payments i can see a decrease in term length and then a saving in interest paid, but what if i wanted to see a reduction in payments.

Thanks
Dai:beer:

To quote from the web page:
"Ensure that any overpayment you make goes to reduce the debt (so shortening the term) rather than reducing your monthly payments. This calculator assumes you reduce the mortgage debt, which is the main benefit of overpaying."

Cuidadosa

Suggestion

In the overpayment calculator, it would be great if they could include some 'advanced/optional' features about early repayment charges (ERC) (to substract from the interest paid saved)

E.g. my mortgage accepts a capital reduction of 10% per year free of ERC, and above that, a charge of 3% of the balanced repaid is applied.
It would be good to figure out several things:
- how much can be repaid annually before incurring in penalty - and for how many years (with a switch depending on what are the ERC allowance terms: e.g. 10% of the initial loan / 10% of the remaining balance / 10% of the monthly repayment, etc...)
- how much the penalty would be according to the overpayment in the different years (when applicable)

Thanks

tomloaf

Can someone help me with the mortgage conundrum as my brain is going dead with this.


I have about £25000 left on my mortgage. I am currently tied in for another 7 years on a fixed rate at 4.49%. I have recently come into some cash due to an inheritance.

I can pay 10% off without any penalties each year which I have done this year. If I over pay more than that I get charged 5%


With the fact that the interest rates are so low at the moment 0.5% can someone do the calculation with working so I can replicate at currently these numbers are approximate.


Should I pay back the 10% as well as my normal payments for the next 7 years and put the other money in savings or should I pay off all my mortgage now and the early repayment fees?


Help!!

Merrick.can.fly

Hello, this is a really great tool. I have a query, I have only just bought my home so still have 29 years or so left of the mortgage, but I do not plan on living in this house the entire time. Is overpaying still worth doing if I plan to sell and upsize in approximately 5-10 years? Will I get that overpayment money back when I sell the house, or should I remain with my usual repayments?

Thanks a lot

Tom

Money_Muppet

I love the overpayment calculator. Constantly playing about with figures to see how much quicker I could be mortgage free.

I'm currently looking at ditching a fixed rate deal, but I'm struggling to find out if it makes sense or not to 'ditch my fix'. I'm with Yorkshire Building Society on a 10 year fix at 3.89%. The early repayment charge is tiered, 6% until Nov 2017, 5% Nov 2018, all the way to 1% in the final year of the fix in 2023. I think I'm correct in thinking that this will affect the rate I'd need to get to ensure a saving. Would it be possible to add these scenarios to the 'ditch your fix calculator' and would anyone know how to go about working this out?

Mobeer

Money_Muppet wrote: »

I love the overpayment calculator. Constantly playing about with figures to see how much quicker I could be mortgage free.

I'm currently looking at ditching a fixed rate deal, but I'm struggling to find out if it makes sense or not to 'ditch my fix'. I'm with Yorkshire Building Society on a 10 year fix at 3.89%. The early repayment charge is tiered, 6% until Nov 2017, 5% Nov 2018, all the way to 1% in the final year of the fix in 2023. I think I'm correct in thinking that this will affect the rate I'd need to get to ensure a saving. Would it be possible to add these scenarios to the 'ditch your fix calculator' and would anyone know how to go about working this out?

Try working out the fee you would pay, then include this value within the "Fees to take out the mortgage" section.

Dandytf

Excellent calculator

I'm on track to pay mortgage 4 years in advance with current 60.00p/month overpayments.

2017 is my next major challenge when my 5yr fix finishes whilst on dmp.

Hopefully I can secure a new fix via Natwide online existing customers.

spaceboy

Can you actually use this to work out if you should pay a product fee added to the mortgage or not? Because it only lets you put in the full term and so if you go for a 5 year fixed rate, after the 5 years is up you would have to go for another deal and this isnt taken into account.

stevie_c_is

Dear MSE,

It's Easter weekend and I have nothing better to do and I'm not expecting a response, anytime soon, from either party.

Basically, I've compared my mortgage bill using your calculator. I don't understand how my monthly repayments schedule/bill shows £498.66 and the MSE calculator shows £479. I'm going to quiz my lender about it but do you know if there could be an explanation?

Regards

Stephen :beer: