Should I pay off my mortgage discussion

getmore4less

kad1 wrote: »

Hi all.

i just want to get some clarification on a point in the overpayment guide. it says:

Money put towards the mortgage only counts after the calculation [interest] is made; so don't put your money in too early as it won't have an impact and you'll miss out on interest you could’ve earned in a savings account.

I know my mortgage with Narionwide is calculated monthly but I don't understand the bit about why ill-timed overpayments may not make any impact? I'm a bit worried now as I have made overpayments in the hope to chip a little extra off the mortgage? When exactly should I make overpayments then? Thank you in advance for your advice/replies.

It's not when the payment is calculated it is how the interest is calculated. I thought Nationwide were daily on most/all oftheir mortgages.

eg my mortgage with Barclays calculate the payment yearly but interest daily

kad1

thanks. i'd have to double-check my mortgage details then but i did think it was monthly. so what's the deal with how interest's calclated and how does that affect when to overpay?

rwdicky

BLACKHURSTM wrote: »

I am about to pay of my interst only morgage in full.
Is there any advantage in leaving a small amount outstand say £500 -£1000,The thought behind it is that I would still have my DEEDS securely locked a the bank for free?
Still leavin the £500-£1ooo in an ISA earning interest although slightly less

I have been told recently by a solicitor that this is no longer a problem. All land registries etc are now kept electronically. My parents bought their house a few years back and invested in a fireproof document safe for maybe £20 or so, so that is what i was looking at doing but apparently it is no longer an issue. (i am no expert though so perhaps ask your bank if this is true).

rwdicky

I am about to pay off my mortgage, but many times i have heard that it is always best to pay off a lump sum before you ask for a settlement figure from the bank... but i can find nothing online to support this...

My mortgage is with Halifax, I have 10 years remaining, i have no limit on how much i can pay off the mortgage, no fees to finish the mortgage. My interest is calculated daily, and my most recent quote for settlement was £50k. If i pay off £30k, then ask for a settlement figure, should i expect it to £20k, or should it have come down...? im not sure how the settlement figure is calculated, but if i pay what i am paying now every month for the next 10years, i will have paid £50k... so where is the savings i should get on not having to pay interest for the next 10 years if i pay it off now...? Im a bit confused, can anyone help?

bilbobaggins

We're now, quite suddenly, in a position to pay off the remains of our mortgage, and before 'hot-footing it' down to the High Street with cheque book in hand, I'd just like to check with the experts...

The Sum Outstanding is about £13,500, the Variable Rate - with C&G - 2.5%. Almost exactly £450 per month goes their way, with just under £50 p/m now in interest. There's about 2.5 years approx. to term. We have no other debt.

I understand there's now no MEAP to pay ( Martin, perhaps it would help if the list elsewhere on this site was dated - ( 'as at xyz date' ).

What does the team think about pros and contras? What's the process? Do I need to involve a solicitor?

:j

kad1

getmore4less wrote: »

It's not when the payment is calculated it is how the interest is calculated. I thought Nationwide were daily on most/all oftheir mortgages.

eg my mortgage with Barclays calculate the payment yearly but interest daily

Hiya.

Could you, or anyone else, explain by how the interest's calculated pls? I just wanna make sure I'm overpaying at the right times! I'm on a variable mortgage with Natiionwide.

Cheers!;)

Lynn11

Nationwide interest is calculated daily so it does not matter when you make the overpayment but the sooner the better as everyone says. Im also with nationwide and it good to see mymortgage figure decreasing online.

Lutty_1985

Hi everyone as you can tell from the title i'm paying my parents mortgage off. The reason why is the bank were in proceedings of repossesing the house. I'm 25 and was saving for a deposit for my first place. But now i've took out a standing order to go into my parents account for the monthly mortgage payments in return once its paid for they will put the deeds in my name. I have been thinking of using my savings to pay off some of the mortgage to bring the payments down. We've been to see a mortgage advisor at the bank (natwest) and was told i could only pay off 10% off the capital and interest one year at a time. Which i'm fine with if it means bringing the monthly payments down each year. My parents have a secured loan attached to the mortgage which they pay but will continue long after the mortgage is due to end, but my question is (i might be in the wrong forum here but here goes!!!) Once the mortgage is paid up can they simply hand the deeds over (once the land registor is sorted) or would they then need to borrow more money so that the loan no longer becomes secured??? I would really appreciate your replies!!! as you can tell i'm new to all this!!!

trudie15

Hi All,

I'm looking for some advice in terms of whether it's financially worth it to pay our mortagage off now or to save the money and continue the payments.

To pay our mortgage off now would cost £119,00 with all early repayment charges and claw back of cashback.

We are currently overpaying and paying £1550 per month. There are 62 months left to pay tied into the fixed rate and then approx 32,000 to pay to clear the mortgage completely at the end of the fixed rate.

We would be left with somewhere in the region of 45,000 after we've paid the mortgage off if we do that now and then save the 1550 per month would we be better off?

I have no idea where to start working this out, can anyone point me in the right direction.

RazorReddo

Hi Guys,
Im thick as s##t!
Could you please advise me on weather or not I am best paying some of my mortgage off or not.
Heres the detail:-
Lender= Cheshire, variable at 2.4% 15 years left at the moment. No problem paying extra payments and they will let me get at it if I need to.
Or do I put it in their postal saver account. One year Guaranteed 2.9%. Then in a year look at it again?
Ive got £30k to invest/save.
All help is gratefully received.
Thanks
Ian