advice please

karren

Ive 8.5 years to run on mortgage and around £50,00 and wondered what sort of figures we are looking at to get the mortgage paid off quicker as mf would be amazing.
I'm 39 and hubby 41 children are 14 and 11

Welshlassie

Anything you pay off will make you mortgage end sooner, but in order for us to help further we'd need a bit more info, like the interest rate and how much disposal income you have to throw at it.

You can plug you numbers into a variety of websites and play with the figures to find the best method to work for you. Whats the cost has a snowball cal emulator that is useful.

Good luck

karren

Rate is 5%
Repayment loan
£480 a month
£100 a month to overpay realistically
I couldn't get overpayment calculator to work

Lotti1982

karren wrote: »

Rate is 5%
Repayment loan
£480 a month
£100 a month to overpay realistically
I couldn't get overpayment calculator to work

If it's based on 50000 you would save £2335 in interest over the period of the mortgage and pay it off 1 year 8 months early.

karren

thanks, Im going to sit tonight and sort my finances to nearest penny and will sort,
do I have to ring the mortgage company?
and where do we stand if we make lump sum payments as and when of say £500 as what id like to do is scrimp and save and pay off as early
Ive gone full time and think the money is better spent on the mortgage than holidays etc (we haven't had it so wont miss)

Beckyy

You will need to check if you're allowed to make overpayments and whether you might incur any fees. Usually you can overpay 10%, but every lender varies.

If you have a good amount of equity you might be better off remortgaging too, your interest rate is quite high.

Welshlassie

It depends who your mortgage is with as to how you can pay it off. One thing no-one has said so far is are you tied in still and therefore may incur any Early repayment Charges. Most mortgages will let you pay something off without incurring anything.

Have you remortgaged recently there are much better rates out there even without fees you could remortgage for a shorter terms on a lower interest rate but keep your monthly payments as they are now and still have money to thorw as Over Payments.

Sorting your finances out are a really good start. Be realistic with what you budget for each category of spend, make sure you include fun money and holiday money and you are more likley to stick to it.

Do you have an emergency fund in place?

midnight_child

Agree with WelshLassie. The biggest and perhaps easiest saving you could potentially make here would be to change your mortgage deal as 5% seems towards the higher end. You seriously need to find out if you on a tied in or not. Even if there is a small repayment charge it might still be a saving to ditch it and get a better deal, but it depends on the exact fees and your current LTV etc.

You dont have that large an outstanding amount (relatively speaking) and so you dont want to be paying any application fees for a new deal. But if you have a decent level of equity then you might be able to get a much better rate and add this saved interest into the payment.

In terms of the overpaying as suggested it depends on your company - Some will adjust your standard monthly payment, some will let you make ad hoc transfers online or over the phone. Some have a minimum amount (say £500) so you may need to save up and pay as a lump. Some also have a 10% max of outstanding balance per year.

You need to ring your mort comp for as much detail as you can squeeze out of them about your current deal:
Am I tied in? If so how long for?
Are there ERCs? If so What level?
How much overpayments can I make?
How can I overpay? Online, phone etc

With this info people can suggest what you should do.

karren

Spoken to bank
£44,850
2.79% (I know I was completely wrong!!!)
Can overpay 9,000 without fees
Tied in until Jan 2015
8years 10 months left

They let me put the £500 off over the phone (initially said they could only take minimum of £1,000
But I can make add hoc overpayments over the year so I'll try and and save as much as I can between now and January and sensibly to pay off as much as I can and go from there

We budget v v closely so have splinter accounts for nearly everything
There is a little emergency fund but
Splinter accounts have monies put aside for expenses
Holiday
Christmas
Cars
School expenses
Savings for the children

quicklee99

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

Have a play around with that, it's very addictive and encouraging

karren

I cant get that one to work, it kept saying my repayments were too high perhaps its me