A MF day begins at midnight

midnight_child

Daily interest is easy to calculate:
Take the amount of mortgage outstanding (e.g. 100,000) and times by interest rate (e.g. 4%). This gives the amount of interest paid over a year (100,000 x 4% = £4000). Divide this number by 365 to get the daily figure (£4000/365 = £10.96).

I have created my own spreadsheet where I do all of this. I have it set up in table form (months as columns, years as rows), and made it so that the computer calculates February based on January's figure. When something changes, such as overpaying, the computer adjusts everything else automatically. Its not something I really want to give out, mainly as it would need a lot of adapting to make it more user friendly. There is already one from Locoblade available online if you need one.


MC

sarahevie1

catriona79 wrote: »

Hey,

Thanks for your response, another 18 months of a fix, are you going to be able to bring in down into the next LTV ratio bracket?
And what spreadsheet do you use to calculate your daily interest - so interesting!

I understand. And didn't expect financial advice, was just after a few opinions. Very valid point re trying to fit it around your life - I need a crystal ball in my case, as I'd like to stop being single, but haven't met anyone special just yet.

Time to get on now! Have a lovely Saturday

Sorry to jump on the bandwagon but what to do re to fix or not fix is on my mind right now too - I think I'm going to fix for five years. My concern is ercs and 10% op limit as I owe £58000.

sarahevie1

Have to say midnight child I'm really impressed, there's not many guys I know early 30s and as clued up with paying off their mortgage as you. Well done

catriona79

Hi Sarah,

I'm fairly sure tesco allow 20% op. I'll check tomorrow

midnight_child wrote: »

Hi Catriona,


My current rate is fixed for another 18 months. Prior to this I was on a 2 year discounted tracker rate (as it was fee free and best I could get with 90%LTV).


There is no right or wrong answer to the type of mortgage you choose, as it really depends on your individual situation. Some people want a long fix to insure against payments increasing, others want one that has lowest rate now, or allows unlimited overpayments. Also a factor would be if you plan on moving in the next 2-3 years. The right answer might be one that offers least stress or piece of mind, rather than being £25 per month.
I don't wish to offer financial advice as i'm not qualified/registered to do so, and am just a random guy still sat in bed on a Saturday morning


What I will say though is in terms of the interest rates.......
No one knows what will happen to them and anyone who says they do is lying. For about the past 3 years we keep hearing that they will go up in 6 months time, but then another thing happens to push this back (Greece, general election, Oil prices crashing, etc, etc). I currently think they wont rise more than 1% over the next 3-4 years, but I have absolutely no evidence to base this on other than my gut feeling. My hunch is that the first small rise will cause general public to crap themselves, and rein in on the spending that runs our economy as they start to consider paying down their debts. This would mean rates have to rise much more slowly - a sort of reduction in methadone rather than going cold turkey.


The only thing that is almost certain is that when the rates do eventually change they will go up not down :rotfl:



The best way to protect against the affects of this is to pay off/down any debts.

MC

midnight_child

sarahevie1 wrote: »

Sorry to jump on the bandwagon but what to do re to fix or not fix is on my mind right now too - I think I'm going to fix for five years. My concern is ercs and 10% op limit as I owe £58000.

That's ok, I keeps from wandering over to the debate house prices board


Mine also has very strict overpayment terms - I can currently pay an additional £80ish each month before charges kick in. But this does not stop me opening savings accounts (ideally paying highest interest I can find), which will mean I will have a large overpayment when the fix ends.


How much would be left at the end of the fix with the max op? I presume you were not intending on clearing it all off before 5 years? You could potentially pay the max 10% OP per year, and save an extra overpayments in a regular saver, or high interest current account. Perhaps this would be enough to clear the balance, when the deal ends.


For what its worth I have no idea what sort of deal I will go for in 18 months.


MC

Thistlewhistle

I've just employed your daily interest calculation on my mortgage and I was only 8p out (which means it was probably correct when I worked it out about 6 months ago!). Feels good to be moving forward!

I currently overpay by £102 per month and have done for ages so I see reduction every month of about £232.

I'm off to calculate when I'm going to be sub £80K - hopefully by Jan 2016!!:D

Feeling motivated!

Thistle;)

catriona79

Thistle, that's good progress.

I need to work it out for myself. A bit of motivation is always useful.

midnight_child

Evening friends,


Work has been pretty hectic this week and my plan to do chores in the evening has slipped.


At least it has been mainly spend free. Did a £25 shop in Ald!, but this will keep we going nearly a fortnight barring the odd loaf of bread.


Looking forward to the weekend for and a much needed lie in.


MC

Thistlewhistle

I had my lie in this morning after my usual 18 hr Tuesday.
And I'm planning another one tomorrow because I'm worth it.
And because it's 03:37 and I'm still reading the forum! It's taking over my life!!:rotfl:

Thistle;)

catriona79

Ha, Thistle!!! I did that onTuesday night. Wednesday at work was difficult, to say the least!

18 hr day at work sounds tough, you definitely deserve a break!

I'm still to calculate daily interest - might in fact do it now.

.....


£7.55 a day. Does that sound correct for a 110k mortgage?