Help with mortgage calculations please

sparky0107

Hello everyone hope you can give me some advice about the best way to go forward with overpayments on my mortgage. I have the following mortgage set up:-

Loan 1 £22008.71 term left 7 years 0 months @ 4.242% Interest only

Loan 2 £20564.09 term left 7 years 0 months @ 4.242% repayment
(Originally interest only)

Loan 3 £14050.47 term left 7 years 0 months @ 4.242% repayment
(Originally interest only)



My monthly mortgage payment is £592.61

Total outstanding £56623.27 all the loans are variable and were originally endowments, which I have kept paying into, so I have 3 endowment payments but only 1 interest only part of the loan left (hope this makes sense)

I have made 19 monthly overpayments totaling £4143.29 to the Interest only part of the mortgage. I want to cover the shortfall of £10,000 on the last endowment loan, then concentrate on cutting the repaymeent loans.

There are no financial penalties or restriction on how much I can overpay. I originally wanted to overpay by £150 per month but find I can comfortably pay £180 per month. I can also keep the repayments at the same level while reducing the capital on them.

I am also now able to pay an extra £180 off the repayment side of the mortgage.

Can anyone tell me how much interest I will save & also how much time I can cut off the remainder of the mortgage to become mortgage free?

Thanks in advance for any replies and advice

sparky0107

Bumping this back to page 1

Imma_Number

Are the endowments due to mature in 7y 0m?

Is the £10,000 shortfall after the £4143? i.e. is it £10,000 now or ~£5,857?

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

By entering various scenarios in the above link I don't think you can pay your mortgage off before 7y 0m, because £180 * 7 * 12 = £15120 is less than £22008. However you will make a big dent in it.

If you overpay the interest only by £180 pcm the remaining balance will be ~£4400 after 7 years.

If you overpay the repayment ones buy a total of £180 pcm then they'll finish ~2y 2m early. At which point you would then put the ~£477pcm that covers those repayment mortgages and the £180 to overpay the interest only portion and it should end the 7y 0m at ~£4400

By my calculations the repayment portion is £477 pcm and the interest only portion is £78 which total £555 pcm somewhat short of your £592.

For overpaying the interest only mortgage until the £10k shortfall is covered requires calculating what the repayment mortgages are after ~4y 8m (£180*56m = £10,080) and I think that would mean the repayment parts would be paid off ~8 months early leaving the interest only part to be paid by the endowment.

Caveat: The above calculations are a little rough and assume no interest rate changes over the next 7 years.

I hope this is what you were after

Imma

sparky0107

Imma_Number wrote: »

Are the endowments due to mature in 7y 0m?

Is the £10,000 shortfall after the £4143? i.e. is it £10,000 now or ~£5,857? - Shortfall is now £5,857

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

By entering various scenarios in the above link I don't think you can pay your mortgage off before 7y 0m, because £180 * 7 * 12 = £15120 is less than £22008. However you will make a big dent in it.

If you overpay the interest only by £180 pcm the remaining balance will be ~£4400 after 7 years.

If you overpay the repayment ones buy a total of £180 pcm then they'll finish ~2y 2m early. At which point you would then put the ~£477pcm that covers those repayment mortgages and the £180 to overpay the interest only portion and it should end the 7y 0m at ~£4400

By my calculations the repayment portion is £477 pcm and the interest only portion is £78 which total £555 pcm somewhat short of your £592. - Originally had another loan which has an endowment on it, so I asked Santander to keep the repayments the same. Also the overpayments amiount to £360 PCM above the £592

For overpaying the interest only mortgage until the £10k shortfall is covered requires calculating what the repayment mortgages are after ~4y 8m (£180*56m = £10,080) and I think that would mean the repayment parts would be paid off ~8 months early leaving the interest only part to be paid by the endowment.

Caveat: The above calculations are a little rough and assume no interest rate changes over the next 7 years.

I hope this is what you were after

Imma

Thanks for your time & help