New to the game

MrHockallz

Hi all,

I've recently got my first mortgage aged 32 and haven't actually made my first payment yet - due 28th June.

I currently owe £68,117 and even before I was approved I knew I wanted the debt gone as quickly as I can. I am with NatWest and have just set up an overpayment of £100 per month extra to increase my mortgage to £497 pcm - I have already worked out a budget and allocated this extra amount. I have used the mortgage calculator on their website and its suggests I'd reduce my term from 21-15 years - happy days - and save about £9,735 over the lifetime of the mortgage (based on my current 5 years fixed term deal)

I also plan to buy solar panels in the near future to try to boost income that way with the last of my savings so I hope to be able to add to this figure if possible.

I'm looking at recording this in a spreadsheet but not sure where to start and am not that hot on formulas.

Any advice?

ourcornercottage

Good luck....sounds like you have a plan.

I had solar panels fitted 4 months ago and are going to use the FIT payments to overpay the mortgage. Payback for me will be approx 7 years. Don't forget to use the electricity you generate too.

getmore4less

Learn to use a simple calculator like

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

to understand how debt, payment, rate, term interact
with any 3 you can work out the 4th.

£68117 paying £397m over 21years rate is 3.92%(probably slightly different due to rounding) paying £31,956 interest.

add £100pm

£68117 paying £497m @ 3.92% paid off in 15y 3m paying £22,357 interest.


There are a few spreadsheets around that model mortgages best to start with one of them to get an idea of what the cells look like.

then work out what model you want if one of those does not do the job.

or start with amortization formula and work out your own

to do it very accurately you need your providers way of calculating interests and take account of payment dates and days in the month.

often easier to estimate with 12 equal months which is what most calculators do