Overpayment

MABLE

amnblog wrote: »

Any such calculator is based on assumptions on overpayments and rates.

Therefore they are about as accurate as the weather forecast.

Borrow as little as you can and repay as much as you can.

Simple.

We are over paying by 1200 per month and should be mortgage clear by January 2015. We are on a 10 year fix which finishes next year at 4.89 percent. NW offered us 2.5 percent fixed for two years with a redemption fee of 3 percent after that period.

However we decided to stay put but will still pay a redemption fee in January of about £100.

Mike4DebtFreeMoney

My early repayment fee with the Co-op was actually on a reducing scale; not a point I realised until I got a recent quote at £300 versus one in 2009 at £1800.

getmore4less

MABLE wrote: »

We are over paying by 1200 per month and should be mortgage clear by January 2015. We are on a 10 year fix which finishes next year at 4.89 percent. NW offered us 2.5 percent fixed for two years with a redemption fee of 3 percent after that period.

However we decided to stay put but will still pay a redemption fee in January of about £100.

Check your followon rate.

MABLE

getmore4less wrote: »

Check your followon rate.

If we did not clear the mortgage by January and we left to
September 2015 the rate would drop to 2.50 percent but variable.

If we went for the 2 year fix rate after that period would be about 3.99 percent but would be variable.

Gloomendoom

Dave882 wrote: »

I don't think you can beat making any sort of overpayment. As soon as we change our mortgage I increase the monthly payments. It's very satisfying watching your mortgage debt decrease quicker than expected.

I'm not sure it is worthwhile if your savings are returning more than your mortgage is costing.

shireknight

Definitely go for it if you can afford too, I started overpaying by just rounding up my monthly payment from £469 to £500 and after studying the amortization figures on Microsoft Money (which I use to track my finances) I got hooked on overpaying and am now baring any unforeseen problems am scheduled to pay off my mortgage a whopping 11 years early.

hillcats

Definitely worth overpaying...

Mike4DebtFreeMoney

Gloomendoom wrote: »

I'm not sure it is worthwhile if your savings are returning more than your mortgage is costing.

If your savings are returning more than the mortgage then you'd be better off with a mortgage payment holiday! Not much of this around though. Nationwide Flexdirect is giving me about 5% but only up to £2500 and only if I round robin £1000 through the account. I think there are other providers, and some people managed to open up several accounts with the same provider.

Mike4DebtFreeMoney

hillcats wrote: »

Bank of England + 0.19% Tracker Mortgage (IF OFFSET REPAYMENT) Discounted (Sept 2007-2010) then increased to Bank of England + 0.62% for remainder of mortgage term (2027).

Seriously? Your mortgage rate is 1.12%, no lower cap? Does make overpayments easier With whom, and what are they offering today?

hillcats

Mike4DebtFreeMoney wrote: »

Seriously? Your mortgage rate is 1.12%, no lower cap? Does make overpayments easier With whom, and what are they offering today?

Hi, just seen your reply...
Yep our rate is indeed only 1.12% which is .62% above base for life, and like you say it has no lower floor. Lender is https://www.if.com but they have now stopped lending so not much use I'm afraid.