extra payment on mortgage

m1lkster

HELLO
PLZ CAN SOMEBODY ADVISE ME.

I HAVE A MORTGAGE OF £62500 OVER 25 YEARS. I PAY AROUND £380 MTH AND HAVE BEEN DOING SO SINCE 3 YEARS AGO.
I WANT TO START MAKING EXTRA MONTHLY PAYMENTS TO HELP REDUCE THE TERM OF MY MORTGAGE.
WHAT IS THE MINIMUM I SHD PAY TO MAKE A REAL DIFFERENCE IN RELATION TO THE TERM OF MY MORTGAGE.
HOW DO I WORK OUT HOW MUCH THE TERM WILL BE REDUCED BY?

THANK YOU IN ADVANCE

Milkster

Cara79

Hi Milkster

Every single overpayment, however small, will make a difference.

The crucial thing here is, you need to know how much your mortgage company will allow you to overpay.

Sometimes it will be a minimum of £500 per month, mine is a maximum of 10% per year. Some may not let you overpay.

You will need to check your terms, as you don't want to be liable for any fees on making overpayments.

x

KTF

Put your details into the overpayment calculator here:

http://www.channel4.com/4money/mortgages/features/overpayment_calculator.html

to see what effect different amount will have.

P.S. typing everything in CAPS is the equivalent of shouting online.

MortgageMamma

are you tied in to your current deal? have you explored the viability of changing your mortgage deal

lola_r_hamster

KTF wrote:

Put your details into the overpayment calculator here:

http://www.channel4.com/4money/mortgages/features/overpayment_calculator.html

to see what effect different amount will have.

thank you, thank you, thank you

i have been toying with the idea of paying some of my savings from childcare into the mortgage but unless you seen the saving in black 'n' white you dont appreciate it. an overpayment of £100 per month will save me 4.5 years & 10k

did i say thank you

Lou :T