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Overpayment
FreddieFrugal
Posts: 1,752 Forumite
Hello, I'm going to be checking with my bank anyway but just wondered...
I'm trying to overpay by the max amount possible for this year as one payment.
My mortgage started on 10th April 2014 so I'm taking that as the anniversary date. I've added up all of the overpayments made so far this year from 10th April 2015 onwards which is 5 monthly payments of £152, one big one off payment of £4631.50 and one more payment of £566.80 went out on 1st.
So I work that out as £5958.30.
I can pay 10% of original mortgage balance, so that's £7,700. (77,000 mortgage)
So my final overpayment to finish off this year early would be £1714.70
That all sound right to you? As I said I'm going to contact bank via internet banking message to check. I wish they showed remaining overpayment allowance for the year online, at the moment it just shows the total overpayment since mortgage taken out.
Just don't want to be facing any charges! (Will then save up for the rest of the year until April so we can pay the £7,700 in full after 10th) clearing as much as possible as early as possible while we're fixed at a low rate so if we're unable to get as good a deal in 2 1/2 years time, at least the mortgage will be much smaller.
I'm trying to overpay by the max amount possible for this year as one payment.
My mortgage started on 10th April 2014 so I'm taking that as the anniversary date. I've added up all of the overpayments made so far this year from 10th April 2015 onwards which is 5 monthly payments of £152, one big one off payment of £4631.50 and one more payment of £566.80 went out on 1st.
So I work that out as £5958.30.
I can pay 10% of original mortgage balance, so that's £7,700. (77,000 mortgage)
So my final overpayment to finish off this year early would be £1714.70
That all sound right to you? As I said I'm going to contact bank via internet banking message to check. I wish they showed remaining overpayment allowance for the year online, at the moment it just shows the total overpayment since mortgage taken out.
Just don't want to be facing any charges! (Will then save up for the rest of the year until April so we can pay the £7,700 in full after 10th) clearing as much as possible as early as possible while we're fixed at a low rate so if we're unable to get as good a deal in 2 1/2 years time, at least the mortgage will be much smaller.
Mortgage remaining: £42,260 of £77,000 (2.59% til 03/18 - 2.09% til 03/23)
Savings target June 18 - £22,281.99 / £25,000
Savings target June 18 - £22,281.99 / £25,000
0
Comments
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Ask your bank to confirm how much you can overpay without incurring charges.
Make it their calculation, then if they get it wrong their cannot enforce a charge.
If you get it wrong, it is on your toe.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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