trying to reduce mort interest as much as poss do you think this will work?

kazzys51

brodie what calculator are you using?

Brodiebobs

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator#result

getmore4less

I understand what you are trying to say and it is nonsense.

It works out the same cost overall for the same payment no matter how you package them.

As long as you are on daily interest as I believe NW are.

kazzys51

if you are looking at an op calc then yes but thats because calculators assume interest is monthly/ annual and your right nw is daily.

but if you do the figures manually and check with the bank which i have then it is in actual fact correct even though it is a small amount;)

HappyMJ

This makes no sense....You are going to pay £20 to extend the term to 25 years yet by overpaying you are going to clear the term in 3.5 years anyway. You won't save any money. It will cost you £20 for nothing and you may even be limited as you can usually only overpay by 10% of the orginal amount borrowed every year anyway. As you are only overpaying £40 a month you have no problem but I think you would if the term was 25 years.

financialbliss

kazzys51 wrote: »

why would 80 people bother to view ??

Kazzys,

I viewed this thread last night, but didn't get around to putting a reply in - no replies at that point

But, your answer is in your question - if you reserved your mortgage product before 29th April 2009:
http://www.nationwide.co.uk/mortgages/existingcustomers/switchmortgagedealending.htm

they you will drop onto the Nationwide BMR of 2.5%, which is one of the lowest SVRs around.

If that's the case, put overpayments in a savings product which beats the 2.5% rate as others have mentioned and review when the base rate changes, or if you build enough to pay the mortgage off.

Don't pay the £20 fee - can't see the sense in that. Once on the BMR you can pay off as much as you want anyway and not just £500.

FB.

kazzys51

That sounds like good advice fb thankyou for your time and for being kind.

getmore4less

kazzys51 wrote: »

if you are looking at an op calc then yes but thats because calculators assume interest is monthly/ annual and your right nw is daily.

but if you do the figures manually and check with the bank which i have then it is in actual fact correct even though it is a small amount;)

The capital reduction is the same so there should be no difference.

If there is then the calculations are being done wrong.

getmore4less

If you really believe this you should insist on going interetst only to maximise the capital payment outside the normal payment.

Sepa74

I don't think you will save anything. Your best bet is to not pay the £20, and put as much as you can in a high interest savings account then as soon as your savings match your mortgage balance, pay off you mortgage (depending on the penalties).