Advise please on repaying mortgage

hcb42

bigal1978 wrote: »

The exact balance is 137300 and the interest rate i think is not fixed at 2.5% above base rate. I will chek this


I would say £30 p/week is my top amount i can repay.

OP - even with NO interest, £70K in 20 years means you need to effectively find £3500 a year - or £67 a week ish....

But that said, a lot can happen in 20 years, if you can overpay £30 a week now, do it - then as your income goes up, or you might move and remortgage etc, you can revise your strategy

bigal1978

My actual repayments at the moment are £534 PER MONTH this is covering the repayment side and the interest on the other £70000 so the overpayments are reducing the balence with each payment but the repayment £534 will not change therefore am i not paying extra money wth my monthly payment if my overpayments are reducing the overall balence with each payment. maybe this is how she came to her fiqure .
She did say paying £120 per month would leave a £14000 balence and i would be saving around £19000 in interest payments ,if interest rates stay the same.
I dont know if she is way out iam just repeating what i was told

Joe_Bloggs

@bigal1978
You should have received an annual statement for your mortgage. This may be worth digging out.

If you are paying 534 per month then :-

If you are borrowing 67000 over 20 years repayment at 3% then this would be paid off by 372 per month. This leaves 162 left per month for the interest only bit of 70000.

The interest only bit requires 175 to pay off the interest so it would appear that you could be making 13 per month underpayments on the interest for the 70000.

The above are just numbers so it is far better to get the facts in writing rather than rely on just a phone conversation or a web forum.

J_B.