Calculator for Split Rates and Overpayments

A

aamname

Guest
Hi All,

I am currently trying to ensure that I have all my mortgage calculations correct before buying a house. I've checked all the calculators in the key post and have done extensive googling but I haven't found a calculator that will show me the effect of over-payments on a split rate mortgage. I was just wondering if anyone knows of such a calculator?

I have found overpayment calculators and separate calculators for split rate mortgages, but I'm looking for one calculator which does both.

The example I've been looking at is borrowing €155,000 over 35 years and fixing 80% at 5.9% for 10 years (AIB) with the other 20% variable (AIB's current rate is approx 3.25 I think). This means that initially €31,000 will be variable and €124,000 will be fixed. I am just not 100% sure that I fully understand the interaction of the split rate with overpayments.

From the split rate calculator I found, it seems that after 10 years I would still owe about €26,000 of the portion of the principle/capital which was initially variable. My goal would be to try and clear this amount in the 10 years when the other 80% was fixed. I am now trying to figure out how much I would need to overpay each month to do this. A naive first attempt is €26,000 divided by 10 to get the amount I'd need to overpay per year as €2,600. I could then divide by 12 to get the monthly amount which is €216. However, I know this is not exactly correct and I'm not sure how much it is out by.

Any help / ideas / info or relevant links would be brilliant.

Thanks a million
 
Thanks for the reply Clubman. I just cannot find anywhere on Jeacle's calculator to input a split rate. I've looked in "settings" and the "interest rates" buttons at the bottom.

However, it has occurred to me since I posted that it may be correct to just treat the 20% variable part of the mortgage as a separate variable rate mortgage. So I can input into a Jeacle's calculator the capital as €31,000 with a variable rate of 3.25 as above and change the term to 10 years and it tells me the monthly payment is €302.93 in order to clear that amount in 10 years.

From the split rate calculator I did find online €699 would be the repayment of the fixed part and €124 would be the repayment of the variable (assuming 3.25% variable rate) part during the 10 years I would have the mortgage partially fixed. I now believe that the monthly overpayment I would need to make to clear the variable part in the 10 years would therefore be the difference between between €302.93 and €124. This is €178.93. I'm not sure this is correct, but it seems plausible.
 
Treating it as two separate but concurrent mortgages - one fixed and one variable - sounds like it might work alright. I've asked Karl in case his calculator has some sort of "direct" support for this though.
 
That's great. Thanks a million Clubman. I just always feel better if I can see the results from a calculator or another source agreeing with what I'm expecting from my own calculations. (And I don't want to be kicking myself for not working through all the calculations thoroughly in 5 years time when I realise there's some unintended consequence of splitting the mortgage as I am currently considering.)
 
For what it's worth Karl got back to me with this:
 
Thanks for that Clubman. I'll talk to my broker (and AIB directly also if I can) next week and I'll update this thread when I have more information - it might be useful for others later on.
 
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