Inspirational calculations!

Blue_BirdBlue_Bird Forumite
60 Posts
Tenth Anniversary Combo Breaker
Forumite
Hello,

I'm not sure if this is the right place, if not, please can it be moved?

I've had a read of some of the diaries on here and been completely inspired! I'm a new MfW trying to work out what is realistic for me to overpay on my (brand new!) mortgage. How did you all decide on target amounts? I feel like I'm picking figures out of thin air, but as a YNAB-er I like to have numbers in columns to play around with!

I want to set myself targets and get a fancy chart to colour in (I can't be the only one that finds colouring motivating!)
I'm looking for suggestions of mini targets and motivations, but want to make sure that my figures add up before I get carried away. :o

Numbers:
Bought for £102500, My mortgage is £92250, fixed at 2.99% until 31/03/19.

My lender says I can only pay back 10% per year as overpayments, but it doesn't say that there is a limit to how many payments I can make... Does that mean that I can send them the odd 12p I find in the bottom of my bag? :D

It says in the terms that they reduce interest from the minute you pay, so I think little and often is the best way, but again, unsure. Would it be better to shuffle it into a disused account and pay it once per month instead?

Does this mean 10% of 92250 or 10% of the total amount including interest?

It seems the best deals are at 75% LTV and below, but I think that might be a bit of a stretch to pay off in three years...:o


Any advice very welcome :)

Replies

  • Hello and welcome!
    Unless there is a minimum (ours is £1) in your ts and cs then you CAN send the 12p at the bottom of your bag.
    In fact we have a term for that!
  • A_Frayed_KnotA_Frayed_Knot Forumite
    3.3K Posts
    Seventh Anniversary 1,000 Posts Name Dropper Photogenic
    Forumite
    Hi and welcome

    For me I worked out how much I thought I could afford at a push and also worked out how much I would need to pay to clear my mortgage by a certain date and birthday.Smaller targets are the best way to start, how about ;
    1. o/p the interest added every month,
    2. rounding your mortgage payment to the nearest hundred, five hundred or thousand, depending on what your mortgage payment is each month,
    3. just a certain figure to o/p each month or
    4. how about a target by the end of the year,
    5. or a figure by your next birthday.
    difficult to say when we don't know your circumstances.

    Normally it's 10% of the total owed at the beginning of each year. and you need to check what your lender allows as o/p's, and I would o/p as soon as you have extra ££'s to pay, not wait till end of month.

    Here's a link I found really useful when calculating my o/p's

    http://whatsthecost.com/snowball.aspx
    Always have 00.00 at the end of your mortgage and one day it will all be 0's :dance:
    MF[STRIKE] March 2030[/STRIKE] Yes that does say 2030 :eek: Mortgage Free 21.12.18 _party_
    Now a Part Timer from 27.10.19
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