chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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ok im just thinking ahead here, if we got a mortgage for £55k with monthly payments of around £322 and mortgage allowed 10% over payment anything above would incur an erc of 3%, would that be 3% of the whole mortgage? ie £1650 or 3% of the over payment, say £100 a month would be £3  havent got a clue when it comes to mortgages 
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Cole
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Registered: 11th Nov 02
Location: eastbourne Drives:zafira sold now a qashqai
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3% of the whole mortgage
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Pop
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Registered: 8th May 03
Location: Reading
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If you are looking at overpaying more than the allowed 10% you could consider a tracker that has no overpayment limit.
If rates start to rise you could then fix it if you like.
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chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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was thinking of overpaying by around £500 each month, so the mortgage would essentially be paid off in around 6 years, but if its going to cost 1650, feck that lol
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chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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will see what the broker comes back with and maybe lower the term of the mortgage so we'll be paying more each month anyway and then over pay on top of that, something to think about
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chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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the house we have seen is on the market for £55k and has been on for 4 months, was thinking just to get on the ladder buy this, do it up, over pay so their is enough equity in the property to move up the ladder in 2-3 years time
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Pop
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Registered: 8th May 03
Location: Reading
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I'm now confused. In your first post you're talking about getting a £55K mortgage then you follow it up by saying the house is only £55K! Do they do 100% mortgages any more?
If you are in a position to overpay by £5,500 in year 1 plus an extra £3,000, do you not have a deposit to put in?
With the house value being low, you could reach a good LTV level easily and benefit from a more preferential rate.
[Edited on 01-03-2014 by Pop]
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chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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i just used that as an example in the first post, we will be looking at a 95% mortgage as we have just used all our saving to clear all our debts, i have a litter of pups to sell that will be ready in 2 weeks so im hoping to put that and anything we can save in the mean time towards a deposit
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Rob_Corsa
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Registered: 4th Apr 02
Location: Derbyshire
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quote:
Originally posted by Cole
3% of the whole mortgage
Incorrect, its 3% of the overpayment amount. You'd only pay £1650 if you decided to pay the whole mortgage off in one go!!!
In reality the fee is 3% of the amount you overpay(above the allowed overpayment amount), ie if you paid an extra grand off on top of the allowed 10% overpayment, they would charge you £30.
I did it a couple of times when I had a nationwide mortgage because if your interest rate is say 3%, after a year you will break even in terms of what you got charged as a fee and how much you will save in interest by having paid the figure off early. At a higher interest rate you will break even sooner.
[Edited on 01-03-2014 by Rob_Corsa]
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chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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also thought about if we can get the ltv a lot lower and do decide to move in 2-3 years, changing the mortgage to a btl and taking a mortgage out on another property, its just the deposit we are short of now to be able to buy something more expensive , but for personal reasons we need to move soon and this house is livable, we cant private rent because of the dogs
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chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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iv been using this as a guide http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator
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chloe16v
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Registered: 29th Nov 07
Location: Rotherham
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this is the house in question, very typical of the houses in this area, my only question, where the feck do you put the cooker?  http://www.zoopla.co.uk/for-sale/details/30609894?search_identifier=e78d89140af4c9deeb09ab883bed2a90
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Pop
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Registered: 8th May 03
Location: Reading
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Go for it, at the rate you will be able to overpay it will be yours outright in no time!
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Rob_Corsa
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Registered: 4th Apr 02
Location: Derbyshire
User status: Offline
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quote:
Originally posted by chloe16v
iv been using this as a guide http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator
The excel based spreadsheet found below is very good;
http://www.learnmoney.co.uk/pdfs/Excel-Mortgage-Calculator.xls
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Ben G
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Registered: 12th Jan 07
Location: Essex
User status: Offline
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55k for a whole house? Am I missing something?
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Dave
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Registered: 26th Feb 01
Location: Lancs
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Have you clicked the link?
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Aaron
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Registered: 9th Aug 04
Location: Cottingham, East Riding
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quote:
Originally posted by Rob_Corsa
quote:
Originally posted by chloe16v
iv been using this as a guide http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator
The excel based spreadsheet found below is very good;
http://www.learnmoney.co.uk/pdfs/Excel-Mortgage-Calculator.xls
Excellent 
I've just worked a few things out the place i'm buying
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Ben G
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Registered: 12th Jan 07
Location: Essex
User status: Offline
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quote:
Originally posted by Dave
Have you clicked the link?
Yeah, it's old and battered but Dagenham is no worse and the houses there are about 4x the price. Ia it a shithole area?
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chloe16v
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Registered: 29th Nov 07
Location: Rotherham
User status: Offline
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It's not a really bad area, it's only afew streets away from where we live now, I couldn't give a shite what the area is like tbh, their are a lot worse and as long as we keep our selves to ourselves like we do anyway, the outside doesn't matter to us, it's a old mining town and these are the pit houses that was built for the workers,
Kitchen needs ripping out and re jigging, the kitchen was originally in the utility room and that was just the dining room, from looking at the pics their isn't even a cooker point
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spencer88
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Registered: 6th Oct 08
Location: cornwall
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If you are looking at over-paying, why not just get a mortgage with higher repayment over a shorter period. Not being funny but by being able to over pay by £500 a month, you should look at getting a mortgage that increases your monthly payments by £250. Will save a shit load in interest.
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John
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Registered: 30th Jun 03
User status: Offline
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It won't if you overpay by that anyway. The main benefit of doing it that way is you aren't forced into paying the £500 a month if you are ever unable.
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chloe16v
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Registered: 29th Nov 07
Location: Rotherham
User status: Offline
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it might take us a few months or even up to a year to up the repayments to that, it all depends on what needs doing in the house, kitchen would be livable for a few months if there were a cooker point, but rest just looks cosmetic, house on same street is up for 70k and we dont like it, would want to move the kitchen into the dining room and knock the wall down which wouldnt be worth it, but this is the original layout of all the houses round this area
http://www.rightmove.co.uk/property-for-sale/property-41659804.html
only thing is, we would need a bloody good sds drill as the walls are solid
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