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Mortgage reducing payments?
Cornholio_2
Posts: 47 Forumite
I must apologise first for probably coming across as a bit financially stupid, but I need some advice on our quest to be mortgage free asap...
Currently mortgage is fixed with Nationwide, 5.18% ends May this year and we go back to 2.5% BMR. Means payments drop from 754 to 605 pcm on approx £100k outstanding. I've been overpaying £499.99 per month via online banking...don't want to risk hitting £500.00 in case I mistakenly overpay and get hit by their ERC for a penny or whatever....
In June we plan to put in £30k, and I'll be putting in £1k as a regular monthly payment(well, that's the plan....4yrs) from then on in.
What I need to know is will our "required" payment from this point in be recalculated each month? Ie at £70k owed it should be £420 or so pcm, and with each additional £1k will that number drop monthly?
The Nationwide blurb says something along this line if you overpay the max £500 pcm during the fixed term?
Or am I missing something completely??!!!:eek:
Currently mortgage is fixed with Nationwide, 5.18% ends May this year and we go back to 2.5% BMR. Means payments drop from 754 to 605 pcm on approx £100k outstanding. I've been overpaying £499.99 per month via online banking...don't want to risk hitting £500.00 in case I mistakenly overpay and get hit by their ERC for a penny or whatever....
In June we plan to put in £30k, and I'll be putting in £1k as a regular monthly payment(well, that's the plan....4yrs) from then on in.
What I need to know is will our "required" payment from this point in be recalculated each month? Ie at £70k owed it should be £420 or so pcm, and with each additional £1k will that number drop monthly?
The Nationwide blurb says something along this line if you overpay the max £500 pcm during the fixed term?
Or am I missing something completely??!!!:eek:
0
Comments
-
No, if you overpay by £500 or more (once your fix ends) you can choose whether to reduce your monthly payment or keep your monthly payment the same and reduce your term
Mortgage at highest (April 2008): ~£195,000
Mortgage-free: January 2021
Retired: June 2022 (186 months early!)0
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