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Mortgage overpayments-Anyone know the answer to...
gazp
Posts: 2 Newbie
Hi,
Hoping that someone will be able to give me some advice. Just finished repaying our loan and now looking to start over payments into our Nationwide mortgage...which has 14 yrs to run, and is part capital repayment and part interest only - which part will the over payments reduce? or can we specify, have ran figures through the overpayment calculator (30,000 int only, and 28,000 cap/repayment) but cant decide which one to pay down if given a choice. We do have an endowment maturing soon but it wont make as big a dent in the balance as we had hoped (guess there are a few others in same boat!) so are looking at ways to try n sort.
Thanks for looking..
Hoping that someone will be able to give me some advice. Just finished repaying our loan and now looking to start over payments into our Nationwide mortgage...which has 14 yrs to run, and is part capital repayment and part interest only - which part will the over payments reduce? or can we specify, have ran figures through the overpayment calculator (30,000 int only, and 28,000 cap/repayment) but cant decide which one to pay down if given a choice. We do have an endowment maturing soon but it wont make as big a dent in the balance as we had hoped (guess there are a few others in same boat!) so are looking at ways to try n sort.
Thanks for looking..
0
Comments
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If they're at the same interest rate, it doesn't matter really - if one is at a higher interest rate, pay that one off first I would say.
Check your paperwork!Feb 2012 - onwards MF achieved
September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
April 2018 down to 28.00 months vs 30.04 months at normal payment.
Predicted mortgage clearing 03/2047 - now looking at 02/2045
Aims: 1) To pay off mortgage within 20 years - 20370 -
Hello, do you have other savings in place to eventually pay off the repayment part of the interest only mortgage, If the endowment is not going to clear it fully? If not, then you should start chipping away at the interest only one, especially if the interest rate on both is the same.mortgage 1 33,000. paid nov 2012
. mortgage 2 87,000 due 51,686.76 at july 2013, but then:new home and remortgage ... £101065.43:eek: now 74k0 -
Hi, no other savings really, was just wondering if the building society will let us state which part the extra pays down. Have asked them as nothing in any of our paperwork and are waiting for a reply. Used the calculator and its swings n roundabouts as to best way to go if we clear capital then after 7 yrs we'll be able to concentrate on the interest part. Just gotta knuckle down now.0
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as above no difference to end result it is only the total payment that drives the numbers.
put the total owing in a calculator and total payment it will give you an idea of how quick you pay it off.
factor in the endowment payout to see if the payment is enough0
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