Mortgage over payment calculator

[Regiment]

Just going to be starting my mortgage soon and looking at what a difference throwing in extra money will be. I've found overpayment calculators online if I want to pay off the mortgage early but can't find a calculator if I want to look at lowering my monthly repayments, can anyone point me in the direction of one please?

[Mandat]

I think that the whole point of overpaying is to reduce the mortgage term (and therefore the total interest payable).

What benefit will there be in overpaying, in order to reduce the monthly payments? Won't the payments effectively cancel each other out?

[bogie]

Many providers you overpay for a while, it sits on your account as a credit and you then take payment holidays as you wish...have a few months off paying

if you want the flexibility of various payments/overpay/stop pay it sounds like you should get an offset mortgage

[The Leaper]

Many years ago I had a simple repayment mortgage over 25 years. Each time the rate increased I increased the payments, each time the rate reduced I kept the repayment at the same amount. Result? By this simple plan I paid off the mortgage in just over 10 years and obviously saved a vast amount by doing so.

R.

[Spitfire2]

Mandat said:

I think that the whole point of overpaying is to reduce the mortgage term (and therefore the total interest payable).

What benefit will there be in overpaying, in order to reduce the monthly payments? Won't the payments effectively cancel each other out?

No - if you use overpayment to reduce the payment so your term stays the same, you will still reduce total interest amount and save money. in some circumstances it may be useful.

[Regiment]

Mandat said:

I think that the whole point of overpaying is to reduce the mortgage term (and therefore the total interest payable).

What benefit will there be in overpaying, in order to reduce the monthly payments? Won't the payments effectively cancel each other out?

The idea is that instead of a compulsory £480 a month to pay each month, it'd steadily come down each month so if something happens, I can put the extra money towards something else.

[orangesrule]

I'm currently saving towards overpayments. i worked out on a £90k mortgage i could save around £25k, if i can pay it off within 8 years, rather than the 25 yr term, even at 2.79% apr. I might aswell overpay the mortgage rather than put it in a savings account. I like financial security, so didn't want to put myself in a compromising position money wise, having had never had any outgoings before; however have found that i can still save a fair amount.

My current payments are £417/month. I have currently overpayed by £9k. And next week am going to overpay by another £9k. So in just over one year i will have chipped around £21k off the debt.

Mortgage free by 30 will be a nice feeling.

[SunsetZed]

OP I suggest you download this:
http://forums.moneysavingexpert.com/showthread.php...

Should give you everything that you need.

[Pheo]

SunsetZed said:

OP I suggest you download this:
http://forums.moneysavingexpert.com/showthread.php...

Should give you everything that you need.

2nded - I use that and its excellent.

Now if I could just stop spending money doing up the house I might be able to start overpaying!

[Regiment]

SunsetZed said:

OP I suggest you download this:
http://forums.moneysavingexpert.com/showthread.php...

Should give you everything that you need.

Thank you, looks great.