what to overpay on part and part mortgage

moohound

I know, not our usual thing at all, spent about £6500 including new clothes and spending money, park tickets car hire etc. Enjoyed it but would not go again, too hot and exhausting for a start, happier in a field with a tap and a toilet for £5 a night.

getmore4less

Come on whats done is done.......

One of the brokers can comment on the viability of a remortgage in hubby only.


First post had total £97k now you are saying £90k/£94k

lets say £95k with £47k repayment(£594pm) £48k I/O(£198) all at 4.95%

Total just under £800pm

Anyway simple approach is £95k 4.95% 8 years repayment is £1201pm

Pay that every month and you have whatever the endowment pays out no more wories about what it does

I would pay a min of £400pm(£1200 total across all 3 parts starting) extra on the I/O and job done.

Any extra over that puts you ahead of the game( save for stuff no more borrowing things can wait)

If you could get the rate down to 3% then £1093 will do it so not a big saving with a remortgage.


If you just want to cover the shortfall(I would double it just in case so £16k) thats £63k repayment(£797) and £32k interest only (£132) say £940. perhaps aim for a min of £1kpm across all the debt 200pm less that the pay it all off so less of a lump sum from the endowment.

getmore4less

Just a though but would 8 years be about the right time to have some money for the kids education,

might be a good plan to have the endowmwnt as a saving plan totaly independat of the mortgage as the mortgage seems to be affordable on a repayment basis with the cuurent surplus.

moohound

getmore4less wrote: »

Come on whats done is done......

First post had total £97k now you are saying £90k/£94k This was a guess, rang Skipton today for accurate figure

lets say £95k with £47k repayment(£594pm) £48k I/O(£198) all at 4.95%

Total just under £800pm spot on

Anyway simple approach is £95k 4.95% 8 years repayment is £1201pm

I would pay a min of £400pm(£1200 total across all 3 parts starting) extra on the I/O and job done. this is do-able

Any extra over that puts you ahead of the game( save for stuff no more borrowing things can wait)

If you could get the rate down to 3% then £1093 will do it so not a big saving with a remortgage.


If you just want to cover the shortfall(I would double it just in case so £16k) thats £63k repayment(£797) and £32k interest only (£132) say £940. perhaps aim for a min of £1kpm across all the debt 200pm less that the pay it all off so less of a lump sum from the endowment.

Thankyou I was trying to work it out using the calculators for the different bits, lumping it all together makes much more sense, and I have maths A-level, that was 25 years ago though I think I was getting hung up on the shortfall, and needed to look at the bigger picture.

moohound

getmore4less wrote: »

Just a though but would 8 years be about the right time to have some money for the kids education,

might be a good plan to have the endowmwnt as a saving plan totaly independat of the mortgage as the mortgage seems to be affordable on a repayment basis with the cuurent surplus.

Son will be 15 when the mortgage ends, so having a lump sum then would be really handy.

getmore4less

THe trick is to use a simple calculator, multiple copies in TABS on the browser.

I used 3
http://www.whatsthecost.com/mortgage.aspx

One trick is once you have an idea of a total payment, change to interest only and put the number in the box.
Then press calculate it will work out the new term( you can ignore the real terms and the repayment/IO portions because the interest rate is the same.

Then play with the total to see how an extra £100 cuts months of the mortgage.

Another trick is to play the we will be tight for a year game, change the term to one year max the payment and see whats left. Then go back and see what the rest of the 7 years will do.

EG say you have £1k spare, on top of the £800 £95k becomes £77700

Thats now £1097pm over the next 7 years, so one year of cutbacks/overpayments gives you £100pm free for the next 7 years.

£1200pm clear in 8y, £1340 7y, £1528 6y.