2008 MFW newbies

torbrex

Great to see that so many of us are keeping up to or even ahead of our projected targets, thanks again to bells for all your hard work.

moneysavingwannabe

Hi,

I've just had a rather depressing day adding up my wedding costs and have decided to drop the main overpayment for a while. :shocked: :sad: :shocked:

I am rather depressed at how much it is going to cost (and we thought we were being moneysaving.)
:money:

So am going to be paying £500 a month in total which consists of an £89.96 overpayment. Hope to be able to add more in about a year.

tootallulah

Hi FluffySox

I'm on an off-set so I'm going to have a go at saving for the rest of the year to see if I am any good at saving-never have been in the past so it may go horribly wrong.

Hideous news of today my 23 year old boiler has irretrievably broken down. Anyone know how much boilers cost? This could wipe out all my overpaying for this year.......................................

mustafa_say_ving

Well done everyone

May was a totally rubbish month here:(

No overpayments at all in May June can only be better

bellsbells......hope the pregnancy's going well.......you should just be seeing the other side of the morning sickness now

Courgette

Can anyone help me out with my maths here. I've borrowed £40,000 over 25 years and wanted to know how much of my mortgage payment each month actually goes towards this and how much on interest.

So here's my sum: 25(yrs) x 12(months) = 300
40,000 divided by 300 = 75

Is this right? So does this mean that each month I'm only paying £75 off the capital? I know it changes throughout the term according to how much interest I need to pay - but £75??!!!?? So each £75 overpayment I make knocks a month off the term of the mortgage?

Feel so motivated to do everything I can to get rid of the !!!!!! now. £75 is such a tiny amount to save/find. I could knock years off really quickly at this rate. Are my maths correct?

Courgette

moneysavingwannabe

Hi,

I'm prob not much help. But I know my mortgage payment consists of about half paying the interest and half paying the term down. My interest is £8 ish a day!! Which is over £50 a week!! I'm not impressed. Do you have online mortgage access this might help.

gallygirl

Courgette wrote: »

Can anyone help me out with my maths here. I've borrowed £40,000 over 25 years and wanted to know how much of my mortgage payment each month actually goes towards this and how much on interest.

So here's my sum: 25(yrs) x 12(months) = 300
40,000 divided by 300 = 75

Is this right? So does this mean that each month I'm only paying £75 off the capital? I know it changes throughout the term according to how much interest I need to pay - but £75??!!!?? So each £75 overpayment I make knocks a month off the term of the mortgage?

Feel so motivated to do everything I can to get rid of the !!!!!! now. £75 is such a tiny amount to save/find. I could knock years off really quickly at this rate. Are my maths correct?


Courgette

Em...... if you have say a mortgage rate of 7% and are paying around £280 a month you're actually only paying around £45 off the capital at the start :eek: .

To get the accurate figures input your interest rate and monthly payment into the SNOWBALL CALCULATOR and that will show you how much capital you repay each month.

Most folk find it better to concentrate on how much interest they pay - in the above example you are paying around £7.50 a day interest, or 32p an hour :eek: - even more reason to get the b*gger paid off!

Good luck!

torbrex

I am no expert but the way I work mine is - outstanding capital x interest rate divided by 12 give the monthly interest so that anything you pay over that reduces the capital the next month.
40,000 x 6.9% = 2760/12 = 230 interest only so if you pay £300 the next month will be
39930 x 6.9% = 2755.17/12 = 229.59 interst only and so on.

This has worked for me since I switched over to a flexible mortgage.

Courgette

moneysavingwannabe wrote: »

Hi,

I'm prob not much help. But I know my mortgage payment consists of about half paying the interest and half paying the term down. My interest is £8 ish a day!! Which is over £50 a week!! I'm not impressed. Do you have online mortgage access this might help.

I do have online access but doesn't seem to be updated very frequently so not much of a motivator. But yes, we do pay a ridiculous amount of interest don't we

C

Courgette

torbrex wrote: »

I am no expert but the way I work mine is - outstanding capital x interest rate divided by 12 give the monthly interest so that anything you pay over that reduces the capital the next month.
40,000 x 6.9% = 2760/12 = 230 interest only so if you pay £300 the next month will be
39930 x 6.9% = 2755.17/12 = 229.59 interst only and so on.

This has worked for me since I switched over to a flexible mortgage.

Yikes, that's even more complicated. Think I'll focus on overpaying as much as I possibly can and not worry too much what it specifically represents in terms of the mortgage duration. I know I'm knocking loads of time off just overpaying small amounts.

Thanks for your response

Courgette