Mortgage ONE lump sum calculator

[Pulse]

I'm trying to find out what difference I'd make to the mortgage if I put in just ONE lump sum and nothing else for the rest of the term. Is there such a calculator? I can only find a regular lump sum calculator, which we won't be doing.

[Sarnie]

Pulse said:

I'm trying to find out what difference I'd make to the mortgage if I put in just ONE lump sum and nothing else for the rest of the term. Is there such a calculator? I can only find a regular lump sum calculator, which we won't be doing.

I can help but I'd need to know specific figures as the program I have is on my desk top not online....

[Pulse]

Sarnie said:

Pulse said:

I'm trying to find out what difference I'd make to the mortgage if I put in just ONE lump sum and nothing else for the rest of the term. Is there such a calculator? I can only find a regular lump sum calculator, which we won't be doing.

I can help but I'd need to know specific figures as the program I have is on my desk top not online....

It should be around £115,000 when our fixed is over and we put the money in. It'll have 20 years left at that stage. Would be looking to put £40,000 in.

[Pulse]

Also need to work out if I reduce the monthly amount after doing that, whether I still save money or not.

For example it's currently £830 a month, and would want to reduce that to £550 a month (quick calculation on a mortgage website). That would enable me to lease a car instead of buying one.

[plover]

Pulse said:

It should be around £115,000 when our fixed is over and we put the money in. It'll have 20 years left at that stage. Would be looking to put £40,000 in.

Have you seen this site http://www.drcalculator.com/mortgage/
lots of options and down the bottom you can see the effect of an extra payment.

[Sarnie]

Pulse said:

Also need to work out if I reduce the monthly amount after doing that, whether I still save money or not.

For example it's currently £830 a month, and would want to reduce that to £550 a month (quick calculation on a mortgage website). That would enable me to lease a car instead of buying one.

Worked out roughly, you'd pay your mortgage off after 10 years 9 months if you maintained the £830 per month payment.

Your payment would reduce to about £537 if you stuck to the 20 year term after the £40k overpayment.......

[Pulse]

Yep, but what would I save in interest over just continuing to pay it? I'm trying to work out if it's cost effective to lease a car by reducing the monthly payment to £550-ish (which would cover the lease cost) and then also saving on interest, too... If that makes sense. Or if I reduce my monthly payment, will be interest still be similar/the same?

[Pulse]

I can work out (roughly) that I'd save almost £60k by carrying on the £830 a month payment, but not sure if I go down to £550 and stick with the term...

[Sarnie]

£115k over 20yrs = £82k approx in interest
£115k, £40k over paid, continue with £830 monthly payments= £26.7k approx in interest
£115k, £40k over paid, continue with £537 monthly payments for 20 years = £53k in interest

HTH?

[Pulse]

Sarnie said:

£115k over 20yrs = £82k approx in interest
£115k, £40k over paid, continue with £830 monthly payments= £26.7k approx in interest
£115k, £40k over paid, continue with £537 monthly payments for 20 years = £53k in interest

HTH?

Brill! Thanks for that! Just what I needed to know!