£67,180 left to pay...how can I do it faster than current term?

Miss_Moneysaver

Hi,


I have decided that I would like to get rid of the mortgage as fast as possible and start enjoying more for ourselves.
We moved house 4 years ago to a 4 bed detached (worth around £210K today). We had lived in a 3 bed semi but found it was getting too small after the arrival of 2 little people.
I work for the NHS but only part time now (3 days) and hubby works full time.
We purchased the house in 2010 for £160K with a mortgage of just under £100K. When we bought our first house in 96' we had intended to use the 25 year endowment to pay it off but decided to change to a repayment mortgage at the time due to all the negative news about endowments. We still pay the same amount into the endowment and it is due to mature March 2017. This is where my little plan is taking shape. We know that, at worst, the endowment will give us around £30K. I am hoping that my monthly payments of £727.11 between now and March 2017 will help reduce the mortgage to a level that the £30K endowment will leave a very small mortgage. I would like to pay extra to pay it off so it finishes March 2017. Current remaining term is 8 years and we are very lucky to have a low interest rate (for the whole term), with the Woolwich/via Barclays, of 1.25%
Is it possible? What kind of extra payment would I need to make? We have £500 extra available.
Or, should I wait to see what the balance is once endowment has been paid in before paying extra (say, I could re-negotiate a new payment for the remaining 5 year term if I left it alone for now)?
We have an offset mortgage.

Imma_Number

Go to
http://www.whatsthecost.com/mortgage.aspx

Enter your current balance 67180 into the how much to borrow box.
Enter 1.25 in the APR box
Select a term longer than your remaining term (eg 25)
Select Interest Only from the dropdown
Enter 727 in the total monthly payment.
Calculate then click Details in the bottom line box.
Using these figures it shows that by March 2017 you'll have ~45,785 remaining.

If you increase the total monthly payment to 1227 (ie 727+500) and press Calculate & Details again you'll see that by March 1017 the balance remaining is ~29000

With such a low interest rate though you could get a better return by putting the £500 in higher interest accounts (eg Nationwide FlexDirect, TSB, Santander current accounts). It is more work and you may feel the extra effort isn't worth it.

Imma