Offset mortgage calculators

[Sossige]

We (Mrs Sossige and I) have an offset mortgage with First Direct - it's great.

We overpay a little each month into the mortgage and also have the money in our current account/savings offsetting the mortgage balance. I've been trying to work out the effect of the savings etc on the mortgage balance over the term.

The best overpayment calculator I've found is http://www.moneysavingexpert.com/mortgages/mortgag... which is an eye opener - but haven't really found anything that specifically helps you see the value of savings etc over the mortgage term.

Does anyone know of a suitable online calculator?

Cheers,

S

[RedWhiteMonkey]

Is this any good: http://new.egg.com/visitor/0,2388,3_54988--View_10...

[Sossige]

RedWhiteMonkey said:

Is this any good: http://new.egg.com/visitor/0,2388,3_54988--View_10...

Thanks, but it's not really what I'm looking for.

Ideally I'm looking for something that can be used to figure out the value of offset funds from a month to month basis. Perhaps none of the online calculators offer that level of functionality....

[llewop]

Does your bank not provide you with periodic updates on progress?

Such as a statement saying something like 'you have saved £x this month/quarter/year vs a normal mortgage'? and/or predicting early payoff by Y months?

If I understand correctly what you're trying to do, it is that sort of thing but on a constant basis? We have an offset and get periodic updates as above, but don't worry too much about the day to day effect, strikes me as too complicated to calculate and to what ends?

[Sossige]

llewop said:

Does your bank not provide you with periodic updates on progress?

Such as a statement saying something like 'you have saved £x this month/quarter/year vs a normal mortgage'? and/or predicting early payoff by Y months?

If I understand correctly what you're trying to do, it is that sort of thing but on a constant basis? We have an offset and get periodic updates as above, but don't worry too much about the day to day effect, strikes me as too complicated to calculate and to what ends?

Hi -

Yes, that's the sort of thing that I am after really. I do get a yearly statement showing the amount paid off etc and also the value of the interest offset, but as you say, I wanted to be able to look at things over a shorter period of time.

Thanks anyway

[5pen]

Presumably you know the outstanding balance, the interest rate, your contractual monthly payment and value of funds 'offsetting'?

Given these figures and a spreadsheet you can work it out for yourself and then simply play around with the offset figure to model how differing balances will affect the balance and term of the mortgage.

PS - is there any point in overpaying an offset mortgage? Surely keeping the overpayment in your offset funds has the same effect of reducing the interest due, but allows you to keep the cash liquid if you need it?

[Sossige]

5pen said:

PS - is there any point in overpaying an offset mortgage? Surely keeping the overpayment in your offset funds has the same effect of reducing the interest due, but allows you to keep the cash liquid if you need it?

Indeed - I only overpay by a token amount, the rest sits in savings.

I'd just like to work out what impact our salaries have on the balance, from a month to month basis. Perhaps I'm a little OCD/nerdy

[James P]

I have an offset mortgage but do not fully use the offset facility, If I overpay it reduces the balance owed and creates an amount that I could draw out of the mortgage account.

I think the best way to see short term savings is to compare the monthly interest against your monthly payment. I get quarterly statements and can see a monthly overpayment of a worthwhile amount as I left the payment at the original level before the interest rate fell.

[Welshbeef]

Sossige said:

Indeed - I only overpay by a token amount, the rest sits in savings.

I'd just like to work out what impact our salaries have on the balance, from a month to month basis. Perhaps I'm a little OCD/nerdy

This is simple.
Few questions youd need to know.
1. What is the annual interest rate - then divide that by 365 to get the daily rate
2. You know the date you salary is paid in
3. You know the amounts and dates when known costs go out
4. So all you need to do is work it out for 30days as in what is the balance on each day multiply that by the interest rate from point 1. And that's how much daily interest you have saved.
Clearly if you get salary in day 1 and then say by day three all bills have gone and there is little left over don't bother wasting your time to work it out as it will be very small