Overpayment help please

wannabeprudent

M5captainmac wrote: »

Thanks for that much appreciated!

Just read you may not have completed yet. If you google NatWest overpayment calculator you don't need to login but can manually input figures to see effect until you can login where it uses you realtime balance of mortgage and term

densol_2

I know exactly what you are saying. If you pay exactly 10% offand choose not to reduce the payments - then the then additional ( but usual ) amount of payment will automatically breach the 10% threshold. Perhaps that's why they either reduce the payment or reduce the term - so the same monthly payment doesn't take you over the 10% allowance.

Purplesky_2

If you need any of that explaining, or some other options, feel free to pm me

RS2000.

M5captainmac wrote: »

Thanks for that purple sky my mortgage rate is 3.38 fixed till June 2016. Your idea does give me a lot to think about. I'm pretty secure in my job (same company since I left school 21 years ago!) in that if I lost my job there is a shortage in the sector though I might be on less money I shouldn't be out of work long.

However my aim is to get the mortgage gone in 15 years, while fixing every two or so depending on rates. This is our forever home so until we downsize in our twilight years (effectively giving cash in retirement) my priority is to get it paid off.

Giving me loads to think over though! So thanks for that.

I thought the mortgage you've been offered was fixed for two years.

M5captainmac

RS2000. wrote: »

I thought the mortgage you've been offered was fixed for two years.

My mistake (typo) it is indeed on rechecking the paperwork fixed till June 2017 sorry about that.

M5captainmac

Purplesky wrote: »

If you need any of that explaining, or some other options, feel free to pm me

Thanks for that very kind of you :T

M5captainmac

densol wrote: »

I know exactly what you are saying. If you pay exactly 10% offand choose not to reduce the payments - then the then additional ( but usual ) amount of payment will automatically breach the 10% threshold. Perhaps that's why they either reduce the payment or reduce the term - so the same monthly payment doesn't take you over the 10% allowance.

Exactly what I was worried about.....I wonder if someone who can do the maths a lot better than I could tell me how much I could over pay in a lump sum and still keep my mortgage payment at the agreed rate without breaching the 10% ie 32200

I will of course discuss this with natwest before doing it to double check I'm not going to be penalised. It will probably the only time I'll get to do this (no way I'll have that amount available again....barring a lottery win :rotfl: can always hope I suppose) so I want to maximise what I can pay to save interest.

libf

Is you limit 10% of current balance or 10% of initial balance? If it's 10% of initial balance then you can overpay 10% of the initial number and then you need to make your normal monthly payments also, no further maths required.