Just used a mortage calculater....

Corley

Hi all, i just used a mortgage calculator, and to say the least i was really surpirsed and shocked.
Heres my situation, i currently pay 400 pound a month on a 80grand mortgage, for 40!!! yes 40 years, at 5.39%. if i was to up my payments to 500 apparently it shaves 20 years and saves 50 odd grand!. I did some other numbers/figures and played about a bit but its all interesting stuff, but no doubt most of you has played about with these calculators things anyway.

herbiesjp

Why not look at reducing the term also.

This way you save on interest payments long term, and you could fit in to the £500 budget. Paying off your mortgage sooner may be another idea.

bridiej

Yes, it makes a big difference having a shorter mortgage, we are now on my husbands original mortgage, when he took it out it was for 17 years rather than 25 and saves a fortune!

herbiesjp

I've just had a quick look, but without knowing your scheme or circumstances it is difficult to be sure.

However if you were able to re-mortgage to a different lender and your circumstances allowed it, you could reduce your mortgage to 25 years and be paying in the region of £450pm

Corley

well i was only just able to get this mortgage, and took it to the limit hence 40 years. im with halifax but i will say im with a partner but they coundt take her money into consideration because shes a contracter, even tho she has been working at this place for a year they still didnt want to know, so everything was budgeted on my salary allown, meaning her money is basicly spare which is quite a bit, so i was gonan try slap an extra 100-200 a month on my payments and see what happens.

Also a quick question if i was to ask that the term be reduced, would my interest rate go down then? sorry im kinda new to all of this. If so i will contact halifax and try arrange a shorter perdiod, once i have a made a few more payments or so.