Reducing mortgage payments monthly instead of the term

themull1

If i have an £80,000 mortgage over 25 yrs at approx 5.99 percent, and i overpaid £500 every month, how much would the direct debit go down by every month?

ryan86uk

themull1 wrote: »

If i have an £80,000 mortgage over 25 yrs at approx 5.99 percent, and i overpaid £500 every month, how much would the direct debit go down by every month?

£511.73 + 500 O/P
£508.48 + 500 O/P
£505.21 + 500 O/P
£501.91 + 500 O/P
£498.58 + 500 O/P
£495.23 + 500 O/P
£491.85 + 500 O/P
£488.44 + 500 O/P
£485.00 + 500 O/P
£481.54 + 500 O/P
£478.05 + 500 O/P


Hope that helps!

themull1

Cheers for that, i couldnt find anything that showed me how it worked!!

themull1

Is there a mortgage overpayment calculator specifically for reducing the monthly payment rather than the term?

ryan86uk

No problems, there are a few iphone apps / internet sites that can do it for you. I have a spreadsheet that does it for me, ill link you shortly.

ryan86uk

Opps... I can't post links yet because im a new user! Ill PM you.

ryan86uk

lol it wont let me PM you either! Sorry! :-/

themull1

Thats ok, after 6 years, (my mortgage starts at £505 a month) what will the monthly dd be? can you work that out?

ryan86uk

Based on 5.99% rate for 25 yr term

1st payment of £505 + £500 O/P (MAR 2011)

6 yrs later it would be

£100.28 + 500 O/P = £600.28 (MAR 2017) +

That is based on over paying by 500 per month every month too.

themull1

Thats good, better than i thought.!! Thank you very much.!