Hi everyone ...

carla_004

I'm a very newbie!

Only got a mortgage in November ... yet can't wait to finish it already :rotfl:

I've used the overpayment calculator on here and as it is I'm 74,000 over 25 years.

Looking at paying £250 extra each month and made a one off over payment this month of £600 - this takes me to 12 years.

However the interest rate is 6% (first time buyer and only about 10% deposit, took what we could get!).
After two years it goes to around 2% I think but let's say 3% just in case ... anyway I want to see how long it will take to pay off at that new interest rate ...

Am I correct in putting 64225 (amount that will be left after two years) over 23 years ... ?

And ... am I better off making overpayments when I can get a higher % interest on savings ... ?

:beer:

Anna_Glypta

Hi Carla

Sorry not qualified to answer your question but just saying hello and I am impressed by your determination right from the start to overpay. I wish I'd known about doing it all those years ago. Good luck.

AG

happycamel_2

Your calculation is correct. If you can get a greater than 6% return after tax then you'd be advised to save rather than OP. Many MFWs have savings that will be used to pay off their mortgage and calculate an "offset" figure. But of course the savings must be used on the mortgage as soon as the increases or when the balance = the balance in savings, whichever is sooner.

carla_004

Thanks for your replies : )

Ah I'm so excited to get this out the way already haha

I'm aiming for under 10 years, but first I must get a better job

Kodagirl

Hi,Carla!!!

Well done you,for starting O/P,straight away,i wish i had,it never even crossed my mind,im in my 8th year,just under 23 years to go,30 year mortgage!!!:eek:
Anyways,onwards and upwards!!! I am aiming to pay mine of in 10years from now,ive got £114,200.00 ish to go!!:(

Your O/Ps,are very impressive,ive just upped my O/Ps from £112.90p/m to £162.90p/m,as im currently paying a loan off,then once thats paid of,il be upping my O/Ps,to over £500 p/m,rates permitting!!!

We will get there,im sure,GOODLUCK!!!:D