Mortgage over payments

[AnthonyC]

I know I am currently overpaying my mortgage, but I'm a bit thick on the exact amount

I currently pay £977 per month, of which I believe the Interest payment in this is £176 ( 1.49% rate on £142k ) Therfore,am I correct to think thay total repayment of the principle is £801 per month ?

Please don't think I'm being smug, to be honest I need to reduce the amount I pay if there is a bit to play with.

Thanks in advance

AC

[V8mate]

I'm happy to confirm that 977 - 176 = 801

[Merlot]

Um. So you want to reduce your payments down to free up some cash each month?

What is your minimum payment on your repayment mortgage? (Will be in the paperwork). You can go down to as low as this. Ie, make no overpayment. The only other option is to switch to interest only.

For example, my minimum payment is £805pcm (capital + interest), but I pay £980 (£175 overpayment). I can reduce this down to £805 again should I wish.

[quyen]

How much longer do you have on your mortgage term?
(i.e. when would you have cleared your mortgage completely had you not made any overpayment?)

For a £142k loan at 1.49%:

The interest is, as you have already stated, £176.32/month

To clear the mortgage in 20 years, you will need to pay, £684.56/month
( Online mortage calculator here: http://www.guardian.co.uk/money/mortgage-calculato... )

To clear the mortgage in 15 years, you will need to pay, £880.82/month

To clear the mortgage in 13.4 years, you will need to pay, £974.72/month
(i.e about what you're paying now)

HTH

Edited by quyen on Sunday 11th October 20:24

[AnthonyC]

That's great guys, thanks for clearing that up, it gives me a clearer idea of what I want to do.

That mortgage calculator is very handy.

AC