A way to pay! Clear this mortgage before 30 years!

Options
24567…18

Comments

  • obay
    obay Posts: 570 Forumite
    Options
    Nothing much going on this morning, for some reason whenever I add a payment to my online account at my mortgage company it shows arrears for some reason, phoned them up yesterday and they said this is perfectly normally, which, I don't know, doesn't seem so normal to me, but as long as I am 'OK' and up to date that's fine by me!! :)

    I've worked out at my rate of interest per day I am being charged £20.35/day.

    I am hoping to get that down to at least £15, I think that's how it works, does anyone know the calculation to take it down to this figure and what I need to pay to get it to this figure?

    I'll aim for that..
    [STRIKE]1/12/16 - £152,599.00 [/STRIKE]
    [STRIKE]11/11/17 - £145,990.00 [/STRIKE] <> Overpaid £3916.
    11/11/18 - £142,074.00
    Barclays Car (5.99%)£0/£8,832.37
  • Wail
    Wail Posts: 265 Forumite
    First Post First Anniversary Combo Breaker
    edited 3 December 2016 at 5:02PM
    Options
    Hmmm. I will do my best with this one.

    £15 per day interest
    4.82% mortgage rate
    365 days per annum

    So we need to switch interest paid to annual amount paid.

    £15 x 365 = 5475

    To work out annual interest amount paid you pay you multiply the total amount by the interest rate. To go "backwards" you need to divide

    So 5475/0.0482 is £113,589.21

    This is simple interest conversion. Mortgages are usually processed on daily compound payments.

    Don't use your first mortgage payment as a reliable guide for the amount of interest you pay because it could be skewed by the mortgage company trying to stabilise your mortgage start date with your monthly payment date.
  • michelle09
    michelle09 Posts: 912 Forumite
    First Anniversary Name Dropper First Post
    Options
    Good luck! 10k in two years shouldn't be unachievable if you've got the funds.
  • lippy1923
    lippy1923 Posts: 1,374 Forumite
    First Anniversary First Post Combo Breaker
    Options
    Ouch £20.35 per day! I thought mine was nasty at about £11 per day.
    Just keep that figure in mind when your spending money. It will really help you to not overspend on unnecessary things.
    Total Mortgage OP £61,000
    Outstanding Mortgage £27,971
    Emergency Fund £62,100
    I AM NOW MORTGAGE NEUTRAL!!!! <<Sep-20>>

  • obay
    obay Posts: 570 Forumite
    Options
    :D
    lippy1923 wrote: »
    Ouch £20.35 per day! I thought mine was nasty at about £11 per day.
    Just keep that figure in mind when your spending money. It will really help you to not overspend on unnecessary things.


    That's what you get when no other lender bar a wonga type of company lend to you.

    It's a bit unfortunate but I really wanted to get on the ladder. Checking out some of the deals that we COULDVE got kinda sucks as well as we could've been quite happily sitting at around £500/month

    Best not think about it and work to paying down the mortgage as much as I can.
    [STRIKE]1/12/16 - £152,599.00 [/STRIKE]
    [STRIKE]11/11/17 - £145,990.00 [/STRIKE] <> Overpaid £3916.
    11/11/18 - £142,074.00
    Barclays Car (5.99%)£0/£8,832.37
  • gallygirl
    gallygirl Posts: 17,228 Forumite
    Name Dropper First Anniversary First Post Mortgage-free Glee!
    Options
    Wail wrote: »
    Hmmm. I will do my best with this one.

    £15 per day interest
    4.82% mortgage rate
    365 days per annum

    So we need to switch interest paid to annual amount paid.

    £15 x 365 = 5475

    To work out annual interest amount paid you pay you multiply the total amount by the interest rate. To go "backwards" you need to divide

    So 5475/0.0482 is £113,589.21

    This is simple interest conversion. Mortgages are usually processed on daily compound payments.

    Don't use your first mortgage payment as a reliable guide for the amount of interest you pay because it could be skewed by the mortgage company trying to stabilise your mortgage start date with your monthly payment date.
    Obay I'd recommend you play about with a spreadsheet of your own making - when you've got to grips with it you can see how much you need to overpay to get the interest down to £20 a day, then £19 etc. Very motivating :D.
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    :) Mortgage Balance = £0 :)
    "Do what others won't early in life so you can do what others can't later in life"
  • lippy1923
    lippy1923 Posts: 1,374 Forumite
    First Anniversary First Post Combo Breaker
    Options
    obay wrote: »
    :D


    That's what you get when no other lender bar a wonga type of company lend to you.

    It's a bit unfortunate but I really wanted to get on the ladder. Checking out some of the deals that we COULDVE got kinda sucks as well as we could've been quite happily sitting at around £500/month

    Best not think about it     and work to paying down the mortgage as much as I can.



    Exactly. I used to drive myself mad looking at all the other deals that became available after my fix started ;)
    Total Mortgage OP £61,000
    Outstanding Mortgage £27,971
    Emergency Fund £62,100
    I AM NOW MORTGAGE NEUTRAL!!!! <<Sep-20>>

  • obay
    obay Posts: 570 Forumite
    Options
    gallygirl wrote: »
    Obay I'd recommend you play about with a spreadsheet of your own making - when you've got to grips with it you can see how much you need to overpay to get the interest down to £20 a day, then £19 etc. Very motivating :D.

    Where can I find a spread sheet?
    [STRIKE]1/12/16 - £152,599.00 [/STRIKE]
    [STRIKE]11/11/17 - £145,990.00 [/STRIKE] <> Overpaid £3916.
    11/11/18 - £142,074.00
    Barclays Car (5.99%)£0/£8,832.37
  • kirtsypoos
    kirtsypoos Posts: 3,824 Forumite
    First Anniversary First Post Combo Breaker Cashback Cashier
    Options
    Ho obay!

    Congrats on the new house and the work you are doing on it :)

    try searching for locoblades spreadsheet - I'm obsessed by it :o
    :j PAID VERY, Barclaycard x3, Vanquis, Natwest, O/D, Tesco & MBNA x2 PAID :j LBM 24/07/15 - Original Debt: £0/31010.23 (100% paid) :eek:
    Mortgage - £151.316.54 :eek:
  • obay
    obay Posts: 570 Forumite
    edited 5 December 2016 at 4:04PM
    Options
    kirtsypoos wrote: »
    Ho obay!

    Congrats on the new house and the work you are doing on it :)

    try searching for locoblades spreadsheet - I'm obsessed by it :o


    Thank you SO much for that! This is simply awesome!

    So, I've already paid an over payment of £30.74 for this month already

    That means my monthly interest rate has reduced from £610.92 to £610.23

    That's already a saving of 0.69p that I will never have to pay interest on again.

    Jesus christ lol that's some good working out..

    One thing I don't understand is; it's not a monthly overpayment, it's simply just a payment whenever i feel comfortable.. How to work the spreadsheet out like that?

    If I pay £500 as an over payment, my interest goes down to £599... so that's saving me an entire £12.. - That is what I will aim for! Still seems a lot on this stupid interest rate!! :(
    [STRIKE]1/12/16 - £152,599.00 [/STRIKE]
    [STRIKE]11/11/17 - £145,990.00 [/STRIKE] <> Overpaid £3916.
    11/11/18 - £142,074.00
    Barclays Car (5.99%)£0/£8,832.37
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.3K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards