Re Mortgage Help

firesidemaid

in that case, reduce your term to an amount you feel comfortable with - even 50 will make a difference - and then try and save also.

see the thread re. mortgage pig and get one you cannot open until you need a hammer!

firesidemaid

having just checked the mortgage calc, by upping payments by £50 a month you can reduce the term by 4 years (think how much you will save in interest):eek:

this is where you start to raise your monthly amount to a little more - check it out for yourself

teacup_2

Hi sazzacat
I am going to definaetely going to do that rather than pay all that extra interest and just checked the mortgage pig out thats a great idea . I think I will call mine PAXO ! AFTER STUFFING !.
mANY THANKS , AM GOING TO GO AND MAKE A FEW PHONE CALLS
x

Floxxie

Sorry Teacup,

Just found the thread again! It seems Sazzacat has covered everything but just to clarify...you can increase your DD to an amount to suit you and ask for the term to be reduced rather than your monthly payment. As long as you do not pay off your ENTIRE mortgage within your tied in period, there should be no charges (which I think you have already found out). You can increase or decrease the DD depending on your circumstances and it just takes a letter to Abbey.

On top of this you can still overpay by 10% a year although have to agree the min. £500 is a pain. Again you need to tell them if you are wanting to reduce the term or monthly payment.

So you can either do one or both.

HTH

Floxxie.

teacup_2

Hi Floxxie ,
Thanks for that and all your help. I rang up Abbey and reduced the term to 15 years (thats a saving of over just over £8000.00 in intrest ) by reducing it by 4 years . My new payment is £407.00.
I asked about the capital repayments thingy where you pay off a certain amount ie £500.00 - £4000.00. I asked if I paid a thousand off how much difference it would make to my monthly payment wait for it .........Drum roll..........£8.50!!. I cant see the point in paying any off that way??, I think you are better off reducing term and paying less interest. Consequently you can pay off less than £500.00 they just dont advertise it.

thanks for your help

Floxxie

Hi teacup,

Good on you!

Just to go back on making a capital repayment; you can ask to have the term reduced rather than your monthly payment. This might motivate to make the extra £500 here and there.

Good luck with it.

Floxxie.

teacup_2

hi floxie,
thats a good idea , i didnt think of it .that way . it takes me a bit longer to understand things:p . Its good to know Its a positive step
Many thanks
xxxxxx