calculating overpayment

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speirbhean

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Hello there - I was wondering if someone could recommend an online calculator that could calculate how much we would save by overpaying our mortgage by a certain fixed amount each month. Our lender (IIB) doesn't seem to have one... I'd need to know how much money would be left on the mortgage after a fixed period of time
thanks very much
 
Thanks Clubman - sorry for being dim this morning but how would I use that to calculate say E700 overpayment per month for a year?
Again - sorry if it's a dumb question - it's Friday :eek:
 
Thank you again. If you don't mind another question - As a general rule is it it best to overpay a mortgage by a fixed sum, or to actually change the duration of the mortgage, ie go from a 30 year mortgage down to a 20 year mortgage? Just to clarify - we are now three years into a mortgage and due to improved financial circumstances can afford to up the monthly payments by approx E700 pm.
thanks!!
 
Lump sum and regular overpayments will reduce the effective term of the mortgage unless you use them to reduce your ongoing regular repayments based on the newly outstanding capital and original term. (Not sure if that's as clear as it could be... :eek:). There is no need to explicitly renegotiate the term unless doing so might allow you to reduce your ongoing mortgage protection life assurance premiums too. DO, however, always get agreement from your lender that any overpayments are to be set against capital immediately. Some lenders may not do this by default unless explicitly instructed!
 
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