Mortgage payments

kezzygirl

Added to the mortgage

robatwork

kezzygirl wrote: »

It states: advance £171,000. One off fee £999.
Interest paid to date £3968
Interest rate 3.64%
First payment June £1162. Payments monthly thereafter £786.
Balance £169,968

Well it's come down from 171999 to 169968

That's a reduction of 1.18% which certainly isn't nothing.

Sounds about right.

enthusiasticsaver

So you have paid off £1031 plus interest over 7 months. On a 40 year mortgage it won't come down significantly in the early years. I strongly suggest you overpay if possible to reduce that term and eventually the overall amount you repay.

dimbo61

Well with an Interest rate of 3.64% and a term of 30/35/40 years your going to pay one hell of a lot of Interest !
Maybe Twice what you first borrowed so £342,000.
Use " whatsthecost " website and put in your Interest rate, amount borrowed and term.
Check with your lender but most allow 10% overpayment each year
So if you can overpay each and every month.
The more you overpay the more equity you build up and hopefully you will get a better deal when you come to remortgage .
If you put down a 10% deposit try and get your LTV down to 85% when you need to remortgage.

getmore4less

double the cost kicks in around
25y 6.3%
30y 5.3%
35y 5.55%


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

£171,000 @ 3.64%

The bottom line, is that this repayment mortgage for £171,000.00, over 30 years, will cost you £781.29 a month.

In taking out this loan, you'll pay a total of £110,265.17 in interest. The true cost of this loan is £281,265.17

kezzygirl

Thank you, my lender, nationwide allow 10% over payment. We hace other debts too which are interest free. It is my plan to overpay but I thought we should focus on the credit debts first? Maybe we should increase mortgage payment to £1000?

Thrugelmir

What's the plan when the 0% period ends though.

Some carefull budgeting and finding some savings with which to overpay won't go amiss. While the impact won't be immediate the compounding effect over the years will pay off.