Today I am playing with the Overpayment (OP) calculator on Money Saving Expert- I love doing this, its amazing how even a tiny OP can make a huge difference to the mortgage!
We currently pay £666.72- I like the 666 number, shame the pennies weren’t 00!
If I were to increase our monthly OPs by £333.28, for example, taking us to £1000 a month, we would save £19,964 in interest over the term of the mortgage, and we would pay the mortgage off 10years and three months earlier. Thats amazing! It would also be a lot of money extra to find to throw at the mortgage…
Even rounding the amount up to £700 a month- £3.28- would see us save £337 in interest and we would pay the mortgage off two months early, this would still be fantastic in the long run! Every penny really does count, and this is based on our fixed rate and the current base rate so this would fluctuate.
I *think* that we might be able to afford to OP 250.28 a month- the 28p is to round it to a whole number, sad I know! Hubby may not agree with this though!Haha. If we were to OP that amount, it would save us £16,742 in interest and we would knock 8 years and 7 months off the mortgage.
Playing with the calculator is addictive, I totally recommend anyone who is considering overpaying has a look at this, it really shows that every penny/pound counts when paying down the mortgage.
My aim is too have a good discussion with hubby and see if he agrees we could start OP the mortgage again, as we used to!
Below is the links to the basic mortgage calculator and the overpayment calculator: