How much difference will a small overpay make?

gingerfurball · 8 January 2007 at 3:21PM

Hubby and I have a mortgage of £118k and pay £720 a month...I know we can easily put this up to £750 or £800 a month...will this make any difference?

20 years to go BTW

Troubleatmill_2 · 8 January 2007 at 3:27PM

Yes lots!!!!

Want to have a real wake up call...

http://www.bankrate.com/brm/mortgage-calculator.asp?

Although it says $ - put in your £ equivalent.

You will be astonished.

Best
Troubleatmill

ifeelsad · 8 January 2007 at 3:28PM

I increased my monthly payments by £81. It's knocked 6 years 4 months off the mortgage and will save over 16k in interest.

Every tiny bit you overpay by really does make a difference

Yorkielass · 8 January 2007 at 4:42PM

I used a repayment calculator to work out how much a small overpayment would make the other day and couldn't believe the difference it did. We've just taken out our first mortgage and by rounding up from £707 to £750 a month we can knock 3 1/2 years from our mortgage and save us 16K. We can afford this right now and provided I can find a better job (currently looking) I'm sure we can go to £800 which would save a massive 30K of internest and cut another 3 years off.

Need to change the account they take the mortgage payments from as we've now set up our joint account so when I do this am going to up payments to £750 :j