How do I work out;

Seanymph

How quickly I can get things paid off? Or how much I need to pay to get rid of them?


I have set my sights on the mortgages - this is it, they are going!

But I'm not sure how to work out my progress apart from watching the bottom line go down, and as I'm a bit obsessive I'd like something more to watch decreasing.

d70cw6

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator?_ga=1.97493853.394881588.1381319239

Seanymph

I obviously need to know more things....

I made an overpayment this morning of £305.12 (there was a reason for the odd amount!)..

and learnt the amounts I still owe.

I also learnt that I can pay off £1,765.12 from the highest interest rate one - Paid £305.12 leaving £1,460 available to pay without penalty before 28th October 2015.

And I can pay £5272.56 from the larger amount (smaller interest rate) before 10th January 2016.

So that will be my first goal I think.

And for the first time with an overpayment I've left the monthly payment alone, so there will be mini overpayments now.

Although they told me that it won't finish early, because when they have finished the fixed rate bit they recalculate and take it back to the term originally agreed.

Seems a bit sneaky to me.

Still, it equals less interest right?

Ma77hew

I have a simple spreadsheet, its slightly different to this description but only because i have a couple of offset accounts.

Column A - is the month
Column B - is the interest rate (%)
Column C - is the months opening mortgage balance (either actual or column F)
Column D - is the interest charge (Column C*Column A / 12)
Column E - is payment up to you if you have 2 columns 1 for regular payment and 1 for over payment, probably better to have both
Column F - is Column C + D - E = Closing balance
Column G - i put as F - C to see how much capital is paid in the month.

If you have 2 mortgage accounts i would just do 2 tables rather than trying to blend the interest rate somehow.

Now obviously this isnt perfect for daily interest calcs but lets you forecast easily into the future.

Sue2607

Hi, I don't know if this will be any use to you but I have used it in the past when I had lots of debt and thought it was fab! Sorry I don't know how to post links but if you search snowball calculator it comes up first. Its at whats the cost. You can put in all the different accounts you have with outstanding balances and interest rates and how much you can pay and it calculates how long it will take and what order you should pay them off! Each time you make a payment you enter it on your snowball and it adjusts the figures! You can also have a play around with your monthly payment amount to see what effect it has on the length of time it will take to pay it off

Sue

getmore4less

Seanymph wrote: »

I obviously need to know more things....

I made an overpayment this morning of £305.12 (there was a reason for the odd amount!)..

and learnt the amounts I still owe.

I also learnt that I can pay off £1,765.12 from the highest interest rate one - Paid £305.12 leaving £1,460 available to pay without penalty before 28th October 2015.

And I can pay £5272.56 from the larger amount (smaller interest rate) before 10th January 2016.

So that will be my first goal I think.

And for the first time with an overpayment I've left the monthly payment alone, so there will be mini overpayments now.

Although they told me that it won't finish early, because when they have finished the fixed rate bit they recalculate and take it back to the term originally agreed.

Seems a bit sneaky to me.

Still, it equals less interest right?

IT's the payments that determine how long your mortgage takes, all reacalculatings and extending back to the original term is make the contractual payment lower.

I would have a serious review of your mortgage and a plan to get lower rates, those are very high.

might even be worth a look at switch now if the ERC are too high to make that worth while its worth thinking about the next option.

Seanymph

e R C?

Sorry, I,m new to this, what is the e r c?

And I think it,s high because we don't live in it. So the rate was higher.

Seanymph

Well reading other diaries is a great inspiration. I spent a lot of yesterday at work doing just that, and am at it again today already.

So, my first step will be to find out how long our mortgages have to run. I have no idea at the moment.

I am already planning next months money, I have to pay off a holiday I have booked for June, service the car, and stick month three into the retirement fund, some into the roof fund..... No wonder i wasn't paying much off the mortgage!

juststuff123

ERC = Early Repayment Charges


This is the penalty you incur for overpaying. Usually you can pay 10% of the outstanding mortgage per year but you MUST check, all mortgages are different.

Seanymph

Thank you - I was given those figures yesterday, and my immediate target is to pay off what I am allowed before October on the higher interest mortgage.

Obviously I have 'big plans' - but they have to be achieved one small bit at a time I think.

It's so lovely to read everyone's journey though - and there is such a scale of time in the stories - it really does show that as long as you keep putting one foot in front of the other you do make progress.