The Ultimate Mortgage Calculator discussion
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ok took the plunge signed up to Sep 2018 at 1.19%, I paid the £550 ERC, think ive saved over 2 month period but not sure no calculator can work my position out.:beer: Printing money since 2008 :beer:0
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I applied 2 weeks ago they said only 1 payment will reflect new interest as delay between was next tot the same time period which is fair enough,
ERC is now £400 however the difference in the last old fix payment and new fix payment is only £300 does that mean I am losing out on £100 and should have just run the old fix out? Or am I still saving?:beer: Printing money since 2008 :beer:0 -
OXFORD_SMOGGY wrote: »£301,064 * (0.0329 - 0.0119) / 365 = £17.32 a day better off
Days left until fix ends 83 so saving of 83 x £17.32 = £1437.56 on new rate over that period.
So total saving is £1437.56 - ERC of £614.69 = £822.87
So new saving is over 40 days now
So 40 x £17.32 = £680
Subtract the ERC of £400 means that make a saving of £280
Is that over the whole mortgage 25 year period or just the 1 and a half months i have ditched and switched? If over the whole period there was surely no point of me paying the ERC:beer: Printing money since 2008 :beer:0 -
I have a scenario where I'd like to pay off a lump sum of £25,000 (First Direct so no penalties) but there's a complication as due to moving home I have two mortgages as I had to port one from my previous property.
The two loans are:
- £132,000 @ 2.80% fixed until 10/2018 with 21 years remaining
- £59,000 @ 3.39% fixed until 08/2019 with 21 years remaining
If I use the calculator, both give a similar saving of c. £17,000 overall and c. 5 years reduced payment time for the larger mortgage and c.11 years for the smaller one.
What I can't get my around is whether it's beneficial in the long term to reduce the smaller mortgage as that's got the highest rate or reduce the larger mortgage as it's the larger sum? Unless I'm over complicating things there are quite a few factors at play!? If it helps with scenarios, my plan would be to remortgage and fix both once their fixed periods end (with the assumption the fixed rates available will be lower than what I'm currently on).
Any advice appreciated!0 -
Hi
Using this tool makes me think I've been doing things wrong for the last few years and wondered if you could confirm for me.
So I've been overpaying by 10% a year for the last few years in a lump sum which is the maximum my mortgage allows in any year, I was assuming that as interest is calculated monthly, this would reduce the capital and I'd be better off.
Using this tool if I set the mortgage at 75000 for 15 years with a 3.5% interest and overpay by £600 a month it reduces my mortgage term by 5 years, conversely if I pay £7200 (£600x12) in a single lump sum it only reduces by 2 years.
Is this correct, I would've expected to pay off the interest quicker.
Thanks for your advice.
M.0 -
Think I can answer some of my own question.
So this assumes a continued overpayment through the life of the loan, so the £600 a month until the end, where the £7200 is assumed as one off.
Revised question then, if I paid the £7200 lump sum every year for the duration of the loan, would that pay off quicker or in the same time as the continued £600/month over payment?
Thank you.0 -
hughesmark wrote: »Think I can answer some of my own question.
So this assumes a continued overpayment through the life of the loan, so the £600 a month until the end, where the £7200 is assumed as one off.
Revised question then, if I paid the £7200 lump sum every year for the duration of the loan, would that pay off quicker or in the same time as the continued £600/month over payment?
Thank you.
just do it for 1 year £600 per month or £7,200 at the beginning and See what happens. whatever happens 1 year happens every year0 -
Came across an app on Google Assistant that can calculate your monthly mortgage payment in a fun conversational manner.
If you own a device with iOS 9 / Android 6 / Google Home, then you can say "Ok Google, calculate my monthly mortgage payment" and it will talk to you and calculate your monthly payment.
This app can also calculate your Income Tax and National Insurance, simply say "Ok Google, Talk to Financial Guru"
This is not my app and I didn't intend to SPAM the forum. Moderators - Please delete the post if not relevant.0 -
Another SERIOUS problem with the ultimate mortgage calculator and overpayments using the 10% annual option.
it get the regular monthly payment wrong.
Left one mortgage free wannabe thinking their mortgage will be £64k after 5 years when it will be £99k0 -
Always pay off the highest interest debt first.I have a scenario where I'd like to pay off a lump sum of £25,000 (First Direct so no penalties) but there's a complication as due to moving home I have two mortgages as I had to port one from my previous property.
The two loans are:
- £132,000 @ 2.80% fixed until 10/2018 with 21 years remaining
- £59,000 @ 3.39% fixed until 08/2019 with 21 years remaining
If I use the calculator, both give a similar saving of c. £17,000 overall and c. 5 years reduced payment time for the larger mortgage and c.11 years for the smaller one.
What I can't get my around is whether it's beneficial in the long term to reduce the smaller mortgage as that's got the highest rate or reduce the larger mortgage as it's the larger sum? Unless I'm over complicating things there are quite a few factors at play!? If it helps with scenarios, my plan would be to remortgage and fix both once their fixed periods end (with the assumption the fixed rates available will be lower than what I'm currently on).
Any advice appreciated!0
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