Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • moomi
    • By moomi 8th Apr 18, 12:31 PM
    • 345Posts
    • 1,002Thanks
    moomi
    Overpayment calculator help please
    • #1
    • 8th Apr 18, 12:31 PM
    Overpayment calculator help please 8th Apr 18 at 12:31 PM
    Hi, I have a mortgage in 2 parts with 12 years 2 months left to run - amount owing is 60,970.
    Part 1 is a tracker currently @ 1.04% for the rest of mortgage
    Balance 21,387.76
    Current monthly payment 157.03

    Part 2 is fixed rate currently @ 3.44% until Jan 19
    Balance 39,582.24
    Current monthly payment 349.09

    Im making overpayments around 80 a month off the larger part with the higher rate but would I be better to do an overpayment on each part? Say I had 100 to use for overpayment- would it be better to use this all towards the higher rate & bigger chunk or spilt it 80/20 for example? The reason for making the overpayments is to minimise interest I have to pay and to reduce the term overall.

    Thanks for any advice you have to offer
    Mortgage March 18 61,350 due to overpayments, slow and steady!
Page 1
    • ViolaLass
    • By ViolaLass 8th Apr 18, 12:43 PM
    • 5,294 Posts
    • 7,322 Thanks
    ViolaLass
    • #2
    • 8th Apr 18, 12:43 PM
    • #2
    • 8th Apr 18, 12:43 PM
    Paying of higher rate better, easily (ignoring whether overpaying at all is best)
    • moomi
    • By moomi 8th Apr 18, 12:46 PM
    • 345 Posts
    • 1,002 Thanks
    moomi
    • #3
    • 8th Apr 18, 12:46 PM
    • #3
    • 8th Apr 18, 12:46 PM
    If I was using the calculator on here to see how much I could reduce off the term, I!
    !!!8216;m assuming I!!!8217;d just do the 2 separately?
    Mortgage March 18 61,350 due to overpayments, slow and steady!
    • Thrugelmir
    • By Thrugelmir 8th Apr 18, 3:46 PM
    • 58,179 Posts
    • 51,551 Thanks
    Thrugelmir
    • #4
    • 8th Apr 18, 3:46 PM
    • #4
    • 8th Apr 18, 3:46 PM
    Certainly worth overpaying the 3.44% part of the mortgage at the current time. Focus on the highest interest part. Reconsider your options again in the future.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • moomi
    • By moomi 8th Apr 18, 4:00 PM
    • 345 Posts
    • 1,002 Thanks
    moomi
    • #5
    • 8th Apr 18, 4:00 PM
    • #5
    • 8th Apr 18, 4:00 PM
    The past few interest payments have been around 140 (on both parts) so if I could manage to pay that amount towards the bigger part that would make a difference, but then wouldn!!!8217;t I end up with only 1 part finished earlier?
    Mortgage March 18 61,350 due to overpayments, slow and steady!
    • amnblog
    • By amnblog 8th Apr 18, 4:09 PM
    • 10,410 Posts
    • 4,116 Thanks
    amnblog
    • #6
    • 8th Apr 18, 4:09 PM
    • #6
    • 8th Apr 18, 4:09 PM
    Given the choice why would you not overpay the element with three times the lending cost?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • moomi
    • By moomi 8th Apr 18, 4:15 PM
    • 345 Posts
    • 1,002 Thanks
    moomi
    • #7
    • 8th Apr 18, 4:15 PM
    • #7
    • 8th Apr 18, 4:15 PM
    I have been amnblog, just wanted to check this was the best option overall and people on here are more knowledgeable about these things than myself. !!!55357;!!!56397;!!!55356;!!!57339;!!!55357;!!!56 397;!!!55356;!!!57339;If the o/payments on the bigger part meant it was cleared faster, I!!!8217;d still be left with the relatively small amount over the existing period of 12 year 2 months so I was asking what would I do with that part as I!!!8217;d like it all paid off sooner ideally.
    Mortgage March 18 61,350 due to overpayments, slow and steady!
    • ViolaLass
    • By ViolaLass 8th Apr 18, 4:36 PM
    • 5,294 Posts
    • 7,322 Thanks
    ViolaLass
    • #8
    • 8th Apr 18, 4:36 PM
    • #8
    • 8th Apr 18, 4:36 PM
    Once one part is paid off you could throw more money at the other part.

    Or choose not to and save the money instead since you could probably earn more interest than you're paying.
    • Thrugelmir
    • By Thrugelmir 8th Apr 18, 4:59 PM
    • 58,179 Posts
    • 51,551 Thanks
    Thrugelmir
    • #9
    • 8th Apr 18, 4:59 PM
    • #9
    • 8th Apr 18, 4:59 PM
    The past few interest payments have been around 140 (on both parts)
    Originally posted by moomi
    Are you sure this is the case?

    Part 1 is a tracker currently @ 1.04% for the rest of mortgage
    Balance 21,387.76
    Current monthly payment 157.03
    As doesn't seem right on these figures.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • moomi
    • By moomi 8th Apr 18, 5:40 PM
    • 345 Posts
    • 1,002 Thanks
    moomi
    It!!!8217;s a slight overestimate Thrugelmir, rounding up rather than down as they vary which I!!!8217;m assuming depends on length of the month
    !!!55357;!!!56832;
    Mortgage March 18 61,350 due to overpayments, slow and steady!
    • ViolaLass
    • By ViolaLass 8th Apr 18, 5:49 PM
    • 5,294 Posts
    • 7,322 Thanks
    ViolaLass
    Your monthly interest on the smaller mortgage should be about 19 per month, nowhere near 140.
    • moomi
    • By moomi 8th Apr 18, 5:54 PM
    • 345 Posts
    • 1,002 Thanks
    moomi
    You!!!8217;re right Violalass, it!!!8217;s between 17 & 19. So once the bigger bit paid off I could pay the rest off lower amount (10% max per year I believe)?
    Mortgage March 18 61,350 due to overpayments, slow and steady!
    • ViolaLass
    • By ViolaLass 8th Apr 18, 6:22 PM
    • 5,294 Posts
    • 7,322 Thanks
    ViolaLass
    You could, although you'd still be better off not paying it off and earning interest elsewhere.
    • getmore4less
    • By getmore4less 9th Apr 18, 7:55 PM
    • 31,874 Posts
    • 19,102 Thanks
    getmore4less
    Read up on snowballing.

    applies to 2 debts or 10.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,984Posts Today

6,542Users online

Martin's Twitter
  • I've decided my weekend starts here while the sun's glow is still baskable. So I'm signing off. Have a great weeke? https://t.co/9FxNEpDs6p

  • No not correct. The big six do, but you can get fixed tariffs guaranteed not to rise and about 25% cheaper. Just tr? https://t.co/B2ft5OS3Ig

  • Baaaa! Scottish Power has bleated and followed the herd, today announcing it's putting up energy prices by 5.5%. R? https://t.co/vi3hBxo4Hn

  • Follow Martin