Overpayments on a mortgage

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Ashers
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Re: Overpayments on a mortgage

Post by Ashers »

bluenosey wrote:That should reduce your term nicely Backlash 8-) I would compare to one of the on-line calculators just to make sure the Halifax get their sums right.

I've just switched to the Coventry, 1.99% but their Standard Variable Rate. Comes with offset account, so just in the process of getting salary and all DDs switched over. The offset will kick in nicely overtime
Do you go through a broker or telephone mortgages? PM me your account number and I will make sure it all goes through smoothly.

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Re: Overpayments on a mortgage

Post by Ashers »

Backlash wrote:£23,000 allowed Bluenosey, but that won't happen :lol:


I've now started overpaying by £300 PCM but I guess I will need to substantially increase that if to knock any of my term off dramatically.
£300 per month wil make a big difference.

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Re: Overpayments on a mortgage

Post by dingram041 »

Thanks to £30 on the nose on number 6 on roulette table giving me £1080 back I'm paid off next month....down to paying £8.16 per month instead of £172 per month and only £769 owed :D.

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Re: Overpayments on a mortgage

Post by dingram041 »

Last payment of £770.70 paid off today...finally clear :D

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Re: Overpayments on a mortgage

Post by Zimmerman »

Great stuff (and lucky you)!

getting to a position of having no mortgage must be great (in terms of one less thing to worry about) and the relative wealth it will bring you!
£700 a month extra sloshing around the joint account?!

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Re: Overpayments on a mortgage

Post by Backlash »

Yes very nice dingram time to get another mortgage-buy to let!

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Re: Overpayments on a mortgage

Post by bluenosey »

dingram041 wrote:Last payment of £770.70 paid off today...finally clear :D
Rock and roll 8-)

No mortgage, no problems :D

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Re: Overpayments on a mortgage

Post by dingram041 »

No...this was my additional borrowing, see other posts on here...started overpayments on that 2 years ago of £20,000 at higher percentage....now to pay off the last remaining £56400 I owe on main mortgage. I reckon 4-5 years on that and then paid off mortgage for the second time (3 lots including additional borrowing). :D. Backlash, I haven't got a buy to let although been thinking about it. This was for my extension, originally £75k main mortgage, £20k additional borrowing. Zim, £172 a month better off, now only paying £550 a month from £722. :wink:

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Re: Overpayments on a mortgage

Post by dingram041 »

My overpayments last 6 months

End of July £500
Mid August £400
End of August £750
Start of September £230
End of September £600
Mid October £1600
Start November £1200
End of November £650
End of December £600

Also have another £500 clear right now to go in and a £1000 coming in off the online bookies....now down to £45000 by mid Jan. Have a big payout in March in 2 years time of roughly £15k.....now within 3 years all will be paid.

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Re: Overpayments on a mortgage

Post by Zimmerman »

anybody know of any decent calculators (or know what sums i need to do) that can help me compare mortgage products?

e.g.

I am currently locked in to my existing mortgage for another 13 months.
My existing rate is 3.59%
Therefore, is it worth me leaving now/early to secure a much lower rate?

If I exit early, there is a penalty to be paid (2%) although this drops to 1% in February (so need to factor this in)

Using the various bank products or money saving expert etc. its not obvious what i will actually save (if anything).

And no, i won't share the figures on here :)

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Re: Overpayments on a mortgage

Post by hornet »

I was about to suggest Martin Lewis' mortgage best buy comparison, but if you've been to moneysavingexpert.com then you may have already tried it.

In case you havn't....https://www.moneysavingexpert.com/mortgages/best-buys/

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Re: Overpayments on a mortgage

Post by Zimmerman »

the bit they don't tell me (as far as I can tell) is how much i am actually paying back.

They will tell me what i pay back over the full term... but they don't say, in year one it will cost you x.

I want to be able to put in an amount, my month payment, the interest rate and for it to spit our how much 12 months is actually costing me.
I can then do the same based on the new interest rates available and see what the difference is.

e.g. my current interest rate is 3.59%... but i have seen some deals offering 1.09% or 2.09%... both include set up fees and my own includes exit fees.

so I want to work out whether the early exit (and penalty) is worth the saving. Ultimately, i 'only' have to wait another 13months anyway.

My angle is that interest rates are soooo low, that surely they can't last for another 13 months, so is it worth getting locked in to one sooner rather than later?

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Re: Overpayments on a mortgage

Post by Ashers »

Evening Zimmerman,

It sounds like you just want to compare during the fixed, discount, etc rate.

Easiest way is to work out what you're paying once your current deals ends over the period of the rate you're comparing against.

For example: 24 months on your current rate at £600 per month = £14,400

Compare this to the rate you may switch to:

For example: 2 year fixed at £350 per month x 24 = £8,400 and then add on any fees.
£8,400 + £999 fee so actual cost is £9,399.

Hope this helps.

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Re: Overpayments on a mortgage

Post by Ashers »

Normally an mortgage offer is valid for 4 to 6 months so there's nothing stopping you starting the process now. Just make sure you don't swap over until the end of your current rate.

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Re: Overpayments on a mortgage

Post by Surprised »

Make a spreadsheet

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Re: Overpayments on a mortgage

Post by robot »

0r take the difference between new and old rate, 3.59-2.09 =1.50

Interest only calculation on 100000 mortgage example.

1.5% * 1000000 / 12 = saving(£125 per month) then is this bigger than the fees.

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Re: Overpayments on a mortgage

Post by Zimmerman »

Robots suggestion is the one that i can understand (thanks anyway Ashers).

Surprised - I've no problem making spreadsheets... its the formulae that trips me up :)

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Re: Overpayments on a mortgage

Post by Zimmerman »

robot wrote:0r take the difference between new and old rate, 3.59-2.09 =1.50

Interest only calculation on 100000 mortgage example.

1.5% * 1000000 / 12 = saving(£125 per month) then is this bigger than the fees.

So i don't need to worry about the fact that the interest is calculated daily (and payments coming off each month etc)?
Or is my interest rate the actual interest rate once all that is factored in?
Or is it negligible (or proportional)?

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Re: Overpayments on a mortgage

Post by Ashers »

Daily interest vs Monthly interest is only important if you're making overpayments. Even then it doesn't really matter if you make your overpayments the day before the interest is calculated.

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Re: Overpayments on a mortgage

Post by robot »

Zimmerman wrote:
robot wrote:0r take the difference between new and old rate, 3.59-2.09 =1.50

Interest only calculation on 100000 mortgage example.

1.5% * 100000 / 12 = saving(£125 per month) then is this bigger than the fees.

So i don't need to worry about the fact that the interest is calculated daily (and payments coming off each month etc)?
Or is my interest rate the actual interest rate once all that is factored in?
Or is it negligible (or proportional)?
Negligible for the purpose of what your trying to compare month 2 you might save £124.30 in the example above
Unless you've got a massive mortgage I would guess not worth it.The set up and exit fees I would guess outweigh the saving or are similar, unless you believe rates will rise a lot over the next couple of years.
I tend to avoid morgages with set up fees just go with the lowest non fee one every two years( but amount you owe would effect this decision)

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Re: Overpayments on a mortgage

Post by Zimmerman »

Great, thanks robot.

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Re: Overpayments on a mortgage

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Re: Overpayments on a mortgage

Post by bluenosey »

There's actually a few comparisons around and on some you can reduce the term and keep payments the same, or instead just go for a reduced payment and leave the term. Also, some models factor in either a "one off" payment or continuing overpayments. I've done both at different stages with my mortgage.

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Re: Overpayments on a mortgage

Post by dingram041 »

dingram041 wrote: 07 Jun 2015, 15:48 No...this was my additional borrowing, see other posts on here...started overpayments on that 2 years ago of £20,000 at higher percentage....now to pay off the last remaining £56400 I owe on main mortgage. I reckon 4-5 years on that and then paid off mortgage for the second time (3 lots including additional borrowing). :D. Backlash, I haven't got a buy to let although been thinking about it. This was for my extension, originally £75k main mortgage, £20k additional borrowing. Zim, £172 a month better off, now only paying £550 a month from £722. :wink:
I forgot about this post...all was paid off by May 2019, so kept to my word. Now I have £6,500 in Premium bonds and looking to get £50,000 in there and increased the pension. Luckily got a bit part military pension, 10 year media one, workplace pension and state one so all good.

Hope everyone else reached their goals!

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Re: Overpayments on a mortgage

Post by Dot »

Hows ur Bum for Love-Bites Dazza? You still suffering?

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Re: Overpayments on a mortgage

Post by dingram041 »

Dot wrote: 02 Feb 2020, 19:54 Hows ur Bum for Love-Bites Dazza? You still suffering?

:mrgreen: :mrgreen: :mrgreen: :mrgreen: :mrgreen:

Hoping your boy wins Shags! :lol:

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Re: Overpayments on a mortgage

Post by dingram041 »

Long time ago now I started on this and never looked back....paid off extension and all the rest last time, then personal reasons/family made me go in to becoming a landlord from end of 2020 to 2022 as needed a second house...my mum never made it in and step father passed away after being there between that time, very sad time for me personally but due to that necessity, house prices rose a lot in that time and finally put me in a place to retire as sold the house shortly after for a massive profit. Tis why FISO took a back burner for me.

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