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
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