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Mortgage question, I can never really get a straight answer about

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Mortgage question, I can never really get a straight answer about this.

I've got £82k left on my mortgage £8200 to be exact.

I'm paying it off pretty quickly but I wanted to know is there any point to putting smaller amounts in aside from the monthly payment and overpayment.

If I had a spare £50 is there any danger to dropping it in the old mortgage fund? I understand this is 0.06% of the total fund but does every little help? does every little add up? IS there any point?
>>
>>965020

>I've got £82k left on my mortgage £8200 to be exact.
82,000 and 8200 are very different numbers OP.

How long would it take to pay off at your current rate?

This matters because the faster you pay it off, the more interest you avoid. Lets say, after 30 years, paying an extra $50 today would have a significant difference due to the compounding interest that would have accrued had you not payed it.
>>
>>965020

It depends entirely on the interest rate, which you haven't provided us with.

Do you think we're oracles?
>>
>>965023

82200... my bad.

At my current rate, It'll take 4 years. to pay it off.

I'm currently living in the US (although I'm In the UK RIGHT now for meetings)

So I have lodgers paying my mortgage which I'm also overpaying

>>965029

again, my bad, 4.95%
>>
>>965020
And also, how much is the maximum you can overpay per month?
>>
>>965030
For every EXTRA $50 you pay NOW, you will save $10.65963 in 4 years. That savings gets smaller as time passes.
>>
>>965037

Unlimited, for some reason, Mortgage is with First Direct.

The only condition is if I pay off the mortgage within the initial term of 5 years I pay a £2000 penalty.
>>
>>965039
Paying an extra $50 PER YEAR you will save $27.29242

Paying an Extra 1200 PER YEAR you will save a total of $655.018.

This does not account for the Time Value of Money.
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>>965043
This also assumes 4 year payoff.
>>
>>965046
>>965043

that's helpful, thanks man.
>>
I never knew mortgages had a maximum you could pay into it...

Like if I went and took a $500k mortgage, on a $1,000,000 home, and my mortgage payments was like $5k a month, I can't just go and pay $10k one month if I have some extra money?

How come that isn't allowed, is it just because then they're getting more interest out of me? Is that why they cap the max?

That actually sucks o_o
>>
>>965076

>my mortgage payments was like $5k a month, I can't just go and pay $10k one month if I have some extra money?

It depends on your mortgage supplier.

It's very common for them to say, you cannot overpay beyond 20% of your monthly payment.

My brother cannot pay an addition of greater than £500 a month

The reason mortgages cap the max repayment is so they can collect that delicious interest from you.
>>
>>965076
>>965100

It depends on local laws of where the loan originated. For example, in my state it's illegal to penalize someone for paying off their loan early or cap payments. It's one of the few benefits of living in a poor rural shithole. Even then, not a lot of people here know about.
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