reduce payment or reduce term

dimbo61

If its fixed for 25 years then overpay by £500 a month for the next couple of years until the balance is down to say £500 then set you DD up to pay the rest off over the remaining term and no ERC,s to pay!!!!

delmar39

Jonbvn wrote: »

OP,

If you reduce the term, then you are obliged to keep making the higher payments. What happens if you have problems, e,g. lose your job? Given this, I would reduce the payments, and continue to make higher payments (assuming your T&C's allow it).

Good advice this. Stay in control. All in all reducing the term or making overpayments is the same difference. I'd remain in control and overpay.

jl45

haras_nosirrah wrote: »

How long do the ERC's last - if it is a 25 year fix mortgage you may have to pay a penalty if you clear it within 25 years. Check when the ERC is no longer applicable

"early repayment shown is the max you will be req to pay if you repay the loan or make an overpayment of 500.01 or greater in any one calender month.

the redemption fee wont be charged if you have 10 years or less remaining on your mortgage"

The charge is 1822.02 and the fee is 90

SJ1

Laura

Can you let me know where the calculator is where you worked this out? I was thinking that this would reduce the mortgage by more but I couldn't find a calculator to compare the two = can you help?

Sarah

catsneel

SJ1 wrote: »

Laura

Can you let me know where the calculator is where you worked this out? I was thinking that this would reduce the mortgage by more but I couldn't find a calculator to compare the two = can you help?

Sarah

http://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx

Hi,
Try this one, i always use this to calculate overpayments.
hope this helps

jl45

SJ1 wrote: »

Laura

Can you let me know where the calculator is where you worked this out? I was thinking that this would reduce the mortgage by more but I couldn't find a calculator to compare the two = can you help?

Sarah

I used this one http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator#result