The Ultimate Mortgage Calculator discussion

riskaverse63

I have an offset mortgage with an interest rate of 1.25% (lucky I know but in the past i have not been so lucky having been stuck in negative equity for 9 years....) Any way i wanted to know if i was better off offsetting my savings or saving and paying the 1.25% on the mortgage. I put 1.25% into both boxes of the Offset or save tool and it showed me that in the 4 years i have remaining with £22,500 left to pay, i would be over £4400 better off saving at 3% and paying the mortgage interest. A great tool but it would be helpful for others perhaps to show how it can be used this way. I will be moving my money out of my offset adap now!

jritchie2308

I'm overpaying by £650 per month (pay extra while going is good) on SVR at Alliance & Leicester. Gone from 18 years to 5 years if I can keep the payments up, saving over £47,000 - excellent tool.
Should continue to do this and pay off my mortgage in 5 years or save my money? anyone any ideas?

jeremy2012

Evening,

Offset / or not offset

I have spend time doing some calculation which still does not tell me where to go.

Option 1:


Property £100000
Deposit £25000

mortgage requirement £75000

Offset £20000


Option 2:


Property £100000
Deposit £45000

mortgage requirement £55000
no offset

for both option a monthly repayment of £400.00

Offset wise: I am aware that
- Inflation may impact savings -
- All the calculation depend of what i do with my saving within the offset pot (if they are used or not)
- That I could have a better rate for a 2,3,5 years with a bigger deposit and that you read that it could pay off initially.

However, how do you managed to compare which one will be more interesting than the other one?

Thanks,
Jeremy

kreativ

Hiya,

I used the tool and really found it useful. You've made our lives so much easier!

But still I'm confused whether I should overpay, because where I stay is a starter house for me. I don't plan to stay here all my live and my second/final house is yet to be bought.
Would it still make sense to overpay for current property?

Regards,
Gia

_office_boy

Hi,

Just a basic query if anyone can help.

On the mortgage calculator, I am assuming income is earnings post tax (net) rather than pre tax (gross) but can't seem to find any clarity.

can any help on this?

Cheers

Colxfile

The overpayment calculator doesn't seem to like the %age overpayment option.

If you enter, say, a 100k repayment mortgage over 25 years at 5% interest the calculator reports a monthly payment of £585. If you choose to overpay by 1% / month, that's about £6 per month overpaid. After 1 year, the debt outstanding should be ~£72 if you overpaid in this manner.

If you enter a recurring monthly overpayment of £6 / month, you can see that after year 1 your debt after overpayment is indeed ~£72 lower than if you didn't overpay. Also, the mortgage is paid off 7 months early.

However, if instead you enter a recurring monthly overpayment of 1% / month, the calculator tells you that the debt after 1 year has been reduced by around £11,000! :huh: What's more, it'll be paid off 15 years early.

[Deleted User]

It would be great if the "saving for deposit" section allowed you to put more than one account in -

e.g. a regular saver allows a max of £300 pcm @ 5% interest,
but I can save more than that per month so the rest goes in to another account at a lower interest rate. And ISA's have a yearly limit etc

Would be easier to work out when I'll reach my deposit goal if several different account with different interest rates can be accounted for

mallardsrear

Does/can the Offset/Savings calculator account also for the extra disposable income that could be invested/saved (i.e. if the original mortgage term was cut short through overpayments?).

buckfast67uk

this tool is fantastic, but what would make it perfect, would be to have it as an app!

Does anyone know if there is an Android app or iOs app available for this calculator?

FreshPrince78

Hi all, does anyone know if I should include child benefit & working tax credits in my salary when trying to work out how much I can borow, do the mortgage lenders take them into account?