Mortgage overpayments - To remortage first?

getmore4less

with a 5year plan hoping rates don't rise too much with that 2y fix.

http://www.whatsthecost.com/mortgage.aspx
(set to interest only and 5y term then play with rate and payment.

in 5 years(60months)

£63,000 @ 3.74% £363pm £52,024 interest £10,804
£63,000 @ 3.74% £1000pm £10,067 interest £7068
£63,000 @ 3.74% £1152pm £57 interest £6,177

drop the rate.
£63,000 @ 2.04% £363pm £46,850 interest £5,630
£63,000 @ 2.04% £657pm £28,296 interest £4,716
£63,000 @ 2.04% £1000pm £6,649 interest £3649
£63,000 @ 2.04% £1105pm £23 interest £3,322

powerful_Rogue

A_Frayed_Knot wrote: »

Sorry, In your 1st post I thought that was what you meant, when you said you would like to pay £1000 a month, clearing in 5 years, that you would be reducing your term to 5 years, as that almost works out.

If you went for the H@lifax deal, just remember that you will be saving on your interest as Bexster says, which in turn means you could put that towards your monthly mortgage payments as well.

Another point to mention, is (you need to check, but if 10% o/p allowance allowed) then you will be allowed 10% up to 31.12.of that year, then the 10% allowance starts again from 1.1 of that year till 31.12. of same year.

Sorry for the confusion. I would like to pay £1000 a month, however im aware that in life there some things we can't avoid (broken car, knackered boiler etc) so some months it would just be a case of paying the minimum and then getting back on track the following month. This is why I was originally thinking of sticking to my current deal and just overpaying.

However the idea of dropping the mortgage down to 10 years in which 2 years will be at 2.04% really appeals to me. I can handle the monthly payments without issue, and can either overpay upto the 10% each year, or just put the overpayments into a savings account and then once the 2 years is up, make a large overpayment and look for a new deal.

bexster1975

That's a pleasure. It is the main reason I still read MFW board, in hopes of assisting others ( and trolling AFKs thread:rotfl:)

Bexster

getmore4less

Another option to help with the cashflow is to get a 0% purchase CC max out around the 2y mark with normal spends and overpay to the max over the 2 years and any surplus before the next deal.

then as would hit the overpayment limit with a full 1kpm you can pay off The CC debt befopre the 0% runs out.

would need a cashflow analysis.


the easy interest savings are lower rate and overpayments

together get £10.7k down to £3.7k squeezing that last £3k gets much harder.

getmore4less

an example of an offset might be
http://www.ybs.co.uk/mortgages/product.html?id=26710

it is a 5y fix at a 1.89% give a lot of flexabilty over payments as you just offset everything.

eg if you could do £1000pm. (and the switch for free apart from £995)

£63,995 1.89% 1000pm £7,457 interest £3,463

A_Frayed_Knot

bexster1975 wrote: »

That's a pleasure. It is the main reason I still read MFW board, in hopes of assisting others ( and trolling AFKs thread:rotfl:)

Bexster

I saw that, nothing better to do - get on with your painting :rotfl:

powerful_Rogue

Thanks for all the links and advice, certainly some food for thought there!