Hi
Figures are not exact, I have used the overpayment calculator to get the idea.
I understand that rates can go up and down.
I have a 3 part mortgage with Nationwide with 8.5 years left on all.
I can overpay by £500 max per month on any part and it will drop the interest paid as long as it's in the £500 bulk payment, all other over payments wouldn't affect the interest until after the 5 years has ended.
Part 1 (the main mortgage) is interest only at £60000 and is above track at this time by £10000 as we always paid more in then needed. Rate just changed to 2.99 on 5 years fixed
Part 2 Repayment £40000 Rate just changed to 2.99 on 5 years fixed
Part 3 Repayment £26000 Rate not changeable for 4 more months 6.08
Question is regarding my plan to pay off quicker.
Plan A is with the monthly saving of £250 approx since changing to the new lower rate of 2.99 ( was 5.95) I was planing to overpay part 3 by £500 every 2 months to end this part 3 years earlier.
I would then use this money to overpay part 2 which would finish that in 2 more years.
I would then use the money to either overpay part 1 to build up some endowment surplus or change some to repayment and pay that off.
What do you think of my plan and is this a good way to go?.
If I go down this route should I fix part 3 for 5 years at 2.99% or leave it a BMR at 2.50% which is likely to go up at the end of 2013.
Figures are not exact, I have used the overpayment calculator to get the idea.
I understand that rates can go up and down.
I have a 3 part mortgage with Nationwide with 8.5 years left on all.
I can overpay by £500 max per month on any part and it will drop the interest paid as long as it's in the £500 bulk payment, all other over payments wouldn't affect the interest until after the 5 years has ended.
Part 1 (the main mortgage) is interest only at £60000 and is above track at this time by £10000 as we always paid more in then needed. Rate just changed to 2.99 on 5 years fixed
Part 2 Repayment £40000 Rate just changed to 2.99 on 5 years fixed
Part 3 Repayment £26000 Rate not changeable for 4 more months 6.08
Question is regarding my plan to pay off quicker.
Plan A is with the monthly saving of £250 approx since changing to the new lower rate of 2.99 ( was 5.95) I was planing to overpay part 3 by £500 every 2 months to end this part 3 years earlier.
I would then use this money to overpay part 2 which would finish that in 2 more years.
I would then use the money to either overpay part 1 to build up some endowment surplus or change some to repayment and pay that off.
What do you think of my plan and is this a good way to go?.
If I go down this route should I fix part 3 for 5 years at 2.99% or leave it a BMR at 2.50% which is likely to go up at the end of 2013.