Overpayment calculators

41 Posts

Hi all,
I've started looking in to repaying my mortgage off early (I still have 20 years and £110k left on it!). My mortgage allows up to 10% of the outstanding balance as an overpayment.
Now I've just been trying out some overpayment calculators - including the one from this site (https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/). If I were to pay £500 overpayment each month, it tells me I could pay off my mortgage 10.5 years earlier. Which sounds amazing! However it seems to me these calculators have a fundamental flaw - in that they don't take in to the account the 10% (or whatever %) overpayment limit that most mortgages have.
So for example, if I were to pay £500 overpayment each month, this totals £6000 over the year, which would be OK if my outstanding balance was over £60k. But as soon as it goes below £60k, I'd have to reduce the overpayments so that it doesn't go over the 10% limit.
Have I got this right or am I missing something?
I've started looking in to repaying my mortgage off early (I still have 20 years and £110k left on it!). My mortgage allows up to 10% of the outstanding balance as an overpayment.
Now I've just been trying out some overpayment calculators - including the one from this site (https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/). If I were to pay £500 overpayment each month, it tells me I could pay off my mortgage 10.5 years earlier. Which sounds amazing! However it seems to me these calculators have a fundamental flaw - in that they don't take in to the account the 10% (or whatever %) overpayment limit that most mortgages have.
So for example, if I were to pay £500 overpayment each month, this totals £6000 over the year, which would be OK if my outstanding balance was over £60k. But as soon as it goes below £60k, I'd have to reduce the overpayments so that it doesn't go over the 10% limit.
Have I got this right or am I missing something?
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£110k remaining over 20 years
Current monthly payment: £560
Looking to pay extra £500 p/m
for playing around with rough figures to get an idea of what is possible at a high level.
Small OPs are better than no OPs!
Feb 2018 £231,000 / Apr 2042
Current £149,500 / July 2036
Mortgage Repaid on 20 April 2021
Click here to visit my Mortgage Free Wannabe Diary
Small OPs are better than no OPs!
Feb 2018 £231,000 / Apr 2042
Current £149,500 / July 2036
Mortgage Repaid on 20 April 2021
Click here to visit my Mortgage Free Wannabe Diary
I'm with HSBC. I've just looked at the overpayment guidelines here: https://www.hsbc.co.uk/mortgages/existing-customers/overpay/
So basically the 10% limit applies if you are on a fixed rated deal (which I am) - but if you're on a tracker/variable deal then no limit applies.
I think I am more likely to continue to fix my mortgage when my current deal expires - in which case I'll probably still be bound to the 10% overpayment limit.
Anyway it all makes sense now. I just need to do my calculations manually. Thanks for all the help
Mortgage Repaid on 20 April 2021
Click here to visit my Mortgage Free Wannabe Diary
It's well worth overpaying sooner rather than later as the saved interest compounds over the entire remaining term and your monthly payments pay a higher portion of the capital.
Small OPs are better than no OPs!
Feb 2018 £231,000 / Apr 2042
Current £149,500 / July 2036