Overpayment calc / NU/Aviva

Johnny_Hamster

Hi - hope someone can help me here

I have five years left on my Nationwide mortgage, details as follows

• Amount outstanding as at end Dec 2010 - £43,450..of which £35,000 interest only, remainder on repayment.
• Monthly payment £492 - (£292 + £200 overpayment)
• Current variable rate : 2.5%
• Mortgage will finish end Dec 2015.

Can anyone tell me how to work out ( or point me to a calculator) how much the £200 monthly overpayment will take off the final £35,000 ? For simplicity, assume the rate stays at 2.5%

I also have a £50000 endowment policy (NU /Aviva) which at the moment projects to a final value of something in the £24,000 mark:mad:
so I'm hoping the £200 pm overpayment is enough to cover this.

Also can anyone clarify if there's any substance to the Aviva (ahem) 'promise' for endowment shortfalls?

Thanks

getmore4less

http://www.whatsthecost.com/mortgage.aspx

The bottom line, is that this interest only mortgage for £43,450.00, over 5 years, will cost you £492.00 a month.

In taking out this loan, you'll pay a total of £3,889.35 in interest. At the end of the mortage terms, you'll still owe £17,819.35

BrianD

"Also can anyone clarify if there's any substance to the Aviva (ahem) 'promise' for endowment shortfalls?"

Yes the MEP does exist though it has not appeared on my annual paperwork since 2004, Aviva say that they will give you three years notice if they are to make changes to the MEP.

I have a policy maturing in April this year and it is around £20k short of target and my MEP is just over £5K so that sum will be added to the shortfall.

If by any chance my policy were to return much more than forecast then I would receive no MEP if it exceeded target and if it missed it by a small amount I would receive a proportion to make the payment up to the target figure.