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Mortgage-free calculation

SadieO Posts: 434 Forumite
First Post First Anniversary Name Dropper
edited 12 January 2023 at 1:07PM in Mortgage-free wannabe
I know there are a few calculators around but I can't quite see one that does what I want to work out, sorry if I am missing something obvious, this is my first mortgage! What I'd like to simply work out is, if I overpay the maximum of 10% a year, when will my mortgage be clear? I'm not sure how to account for the interest, and the monthly payments. Is the 10% overpayment over and above your monthly payments, or taking them into account too? And how do you work out the interest - obviously it's not as simple as having a £250k mortgage so if you pay off £25k then the next year you will have a balance of £225k, because interest will be added on. And then, the next year, is the permitted overpayment 10% of the remaining capital, or of the total outstanding amount including interest? 

Is there a calculator (or a spreadsheet formula) I can use to work this out? Thanks in advance!


  • Clueless56
    Clueless56 Posts: 103 Forumite
    First Anniversary Name Dropper First Post
    edited 12 January 2023 at 7:39PM
    This will do all the work for you: https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/ 
    You enter your mortgage balance, the monthly payment or interest rate, and the amount you wish to overpay (either in £ or as a % per month/year) and it works it all out for you.  

    ETA: the results show the mortgage repayment both with and without the overpayments, to answer your other query.
  • SadieO
    SadieO Posts: 434 Forumite
    First Post First Anniversary Name Dropper
    I'm not sure that quite does what I'm after, as you can only enter a recurring payment in £ not as a percentage. Thanks though! 
  • Bargainhunter30
    They have changed it, you used to be able to select % for the reoccurring overpayment too
    Mortgage start date Nov 2014  - £90,545 over 25 years
    Re-mortgage Oct 2017 - 78,295 over 23 years
    Re-mortgage Jan 2020 - 55,000 over 26 years @ 1.94%
    Current Mortgage Outstanding Middle December 2020 - £
    47893.35 - a reduction of £42,652 in just over 6 years!  

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