Sure, £200,000 at full term, but the ERC comes within easy trigger when you have less than, say, a decade to run on the mortgage.
Nationwide’s overpayment limit is 10% of the original loan amount, so no matter how much balance you have left you can overpay up to 10% of the original amount every year (unless I understand it completely wrong).
I don’t know about others but my mortgage allow overpayments of up to 10% of the initial sum borrowed per annum, not 10% of the mortgage balance, so the overpayment limit remains static throughout the term. In your example £20k pa throughout… each lump sum overpayment triggers a recalculation of the minimum monthly mortgage payment which means that leaving regular monthly payments at the same level creates a monthly overpayment too… which needs to be managed carefully to ensure that you remain within the limits…
Which is great, but my HSBC mortgage has the ability (in the terms) to change the limit after the fixed rate period ends, whilst the ERC period is still in force.
All of which proves the point that care is needed in any service which makes it frictionless to overpay a mortgage.
Nationwide gives you the option to either lower the monthly payment (which auto-adjusts the DD) or to reduce the term of the mortgage, with every overpayment.
yes, agreed… it can be a minefield if you are not clued up.
just out of curiosity does your early redemption charge period extend beyond the term of your fixed rate deal? as that’s another complication when it comes to calculating how much to over pay
I was a first time buyer last year and my mortgage is the biggest amount of credit I’ll ever see myself incurring. I’m very much interested in what action I have taken, or could take in future, to reduce the balance and any interest charges.
I’ve been making reasonable (but not massive) overpayments each month but I have no idea how much this has saved me in potential future interest and a shortening of the mortgage term (all things being equal).
Going forward, I don’t know what impact reducing my overpayments or increasing them will have (ie. Is the benefit so small I’d be better doing something else?).
I would, somehow, absolutely love to see both historical impact of overpayments (‘you have overpaid £x which has caused you mortgage term to decrease by y months and have saved £z interest), and something where you have the ability to model future overpayments e.g. a slider with [£25] increments which adjusts the gradient on a graph (current vs revised mortgage term) and quantifies the impact.
Once I did something similar with my student loan and it really helped me understand the impact of making additional payments over and above the salary deduction (but within my means) and I paid it off so much faster.
May wel be in the ‘too hard box’ but would love to see this!
Without knowing any specific numbers/rates, you can be safe in the knowledge that any overpayments will save you A LOT of money over the whole term (making sure you don’t incur any extra charges!)
I don’t make overpayments currently as I’m still doing the house up, but as a rule I always ensure I ‘overpay’ the amount of the mortgage arrangement charge at the start of the term, so I’m not accruing interest on it.
Your mortgage lender will generally have a tool available which you can plug all the figures info.
MSE has a decent overpayment tool which you can also get it to check to see if you’re better off overpaying or saving that money instead
EXACTLY this. But in-app
And Monzo’d. With a slidey thing.
Here’s a small ask: can I change the name of my mortgage provider (and other connected accounts)?
- Because Monzo is picking up a very long form of the provider name.
- For connected accounts I have multiple accounts with some banks. I can’t distinguish between them!
- I’d like to put the interest rate or other useful info in the name (it’s a hack but a useful one).
I’ll answer this for the mortgages part (although a similar model we’re not looking at the other connected accounts with our work at the moment!)
Shorter term: We’ve got “short names” and logos for ~ 22 lenders which popped up during our staff testing phase - which we manually categorised once we saw how the lender names were defined in the TransUnion API.
We’ll likely do another batch of the new lenders folks have connected in Labs to give it some extra polish!
Longer term: All the feedback on the Community (and via the app) has been super helpful - it will help us to think about the best way to personalise things visually as well as the data!
As you can imagine, we’d like to try to align as much of this “top level” data with the great progress being made over at App Evolution!
Easy enough to access but the figures are wrong.
I have two mortgages and
- the monthly payments are on the wrong accounts
- the total amount of mortgage is also reversed
- which means the calculated paid back amounts and percentages are a work of fiction
I read in the comments that the data is from TransUnion and not from the Mortgage provider.
So a case of GIGO, Garbage In, Garbage out.
And these people are giving out ratings on my worthiness…
My mortgage has now refreshed and it’s only 14 days out of date. So that’s better
Just added my mortgage from Platform, surprised it found it but no fancy card design. Only paid back 9%
Yeah but I’m ok with this. I’ve just taken out a mortgage… 12 monthly payments x 25 years = 300 payments. So if it’s one or two payments outs, it’s still accurate to within about 0.5%. As you get closer to paying it off, that error will become more significant, but I still think it’s a nice addition.
I know for a fact that we have a design for this kicking around in a Figma file - maybe we’ll have a New Year’s card design as a gift to you!
How about Christmas?
Bring back shake-to-snow
Monzo - please change these flags to ‘true’:
<boolean name="snowglobe_2018" value="false" />
<boolean name="snowfall" value="false" />
Paging Santa Doe! @AlanDoe