How soon can I pay off my mortgage?

HappyMJ

dm281 wrote: »

This really does show the disparity across the UK, I was paying £600 a month rent to live in a house worth £110k Max - as is the person living in it after me.

Doesn't it. The 2 bedroom flat my partner and I are renting is worth £100,000 and we're only paying £475/month inclusive of service charges a fully furnished kitchen including cooker, fridge, freezer and washing machine. It's modern with both a bathroom and an ensuite and is quite spacious 3 minutes walk from town centre and has a car parking space.

The 3 bedroom terraced house my OH recently moved out of was worth around £85,000 and she was paying £350/month. That property included nothing similar to what you would get had you got a housing association property...no cooker and no floor coverings.

I just find it strange that you were paying so much yet LHA rates for your area are very similar to my area.

http://liverpool.gov.uk/benefits-and-grants/housing-benefits/local-housing-allowance/
http://www.eaststaffsbc.gov.uk/benefits-and-support/housing-benefit/local-housing-allowance

getmore4less

dm281 wrote: »

I have 35 years remaining on my mortgage, and I currently owe 82k. My interest rate is 5.99%.

My mortgage permits me to overpay by up to 5% of the remaining balance per year.

I can afford to overpay by up to £400 per month.

Assuming the interest rate stays the same, how soon can I pay off my mortgage?

Cheers
D

Shame no one answered the question.

£82k 5.99% 35years £467pm.
adding 400pm(penalty free)
£82k 5.99% £867pm (129m) 10y 9m

To get the payment penalty free you would need to reduce the term if you have a 5% limit or just save the bit and wait for the 2 years then overpay lump sum, won't make a lot of difference.

Eg if you overpay £300 for 2 years save £100pm then overpaid the £2400 when penalty free it would still take take 129m just a slightly(£250) bigger last payment.


As others have said there will be better deal out there which you should be able to tap into at some point.

if you can get the rate down to 2.99% then it will take 9 years