Goodbye Mortgage - the beginning of the end!

Beckyy
Beckyy Posts: 2,830
Name Dropper First Anniversary First Post Combo Breaker
Forumite
edited 18 October 2013 at 2:46PM in Mortgage-free wannabe
Hello!

I've been lurking for a while and have finally plucked up the courage to start my own diary.

My OH and I moved into our current house a few months ago (it doesn’t feel that long!) We bought it for £125,000 and we have a mortgage with Woolwich for £102,000. It's a 3 year fixed at 4.28%.

The section of our keyfacts stating 'For every £1 borrowed you pay back £1.59' is haunting me, and I'm determined not to have it hanging over us for 25 years. I've been toying with figures and I'm hoping we could do it in 10 years. This depends a lot on the future though. We know we want to have a family in the next few years which will mean our income could change hugely, but we'll plod along and see!

My first challenge is finding out how to actually make overpayments on the mortgage. Woolwich seem to make it very difficult. I can’t view the mortgage online, so have been into Barclays and they have said I can bring in a cheque or cash to branch, but I was hoping they’d be a more convenient way as I don‘t go near the branch often. I’m going to call them today and hopefully find out!

Wish me luck...:j
«13456753

Comments

  • Beckyy
    Beckyy Posts: 2,830
    Name Dropper First Anniversary First Post Combo Breaker
    Forumite
    edited 27 June 2019 at 7:37PM
    Overpayments to date:
    1. July 2012 - £500 OP. Mortgage Balance: £101,069.51
    2. August 2012 - £600 OP. Mortgage Balance: £100,245.28
    3. September 2012 - £550 OP. Mortgage Balance: £99,469.01
    4. October 2012 - £531.20 OP. Mortgage Balance: £98,830.45
    5. November 2012 - £25.26 OP. Mortgage Balance: £98,642.76
    6. December 2012 - £5 OP.
    -
    7. January 2013 - £5 OP.
    8. February 2013 - £5 OP.
    9. March 2013 - £5 OP.
    10. April 2013 - £132.04 OP. Mortgage Balance: £97,478.93
    11. May 2013 - £71.37 OP. Mortgage Balance: £97,465.23
    12. June 2013 - £75.05 OP. Mortgage Balance: £97, 324.23
    13. July 2013 - £36.41 OP. Mortgage Balance: £96,658.53
    14. August 2013 - £25.11 OP.
    15.September 2013 - £15 OP.
    16. October 2013 - £52.02 OP. Mortgage Balance: £95,924.45
    17. November 2013 - £160.65 OP. Mortgage Balance: -£95,546.06
    18. December 2013 - £106.32 OP. Mortgage Balance: £95,120.31
    -
    19. January 2014 - £209 OP.
    20. February 2014 - £214 OP. Mortgage Balance: £94,360.15
    21. March 2014 - £209 OP. Mortgage balance: £93,806.66
    22. April 2014 - £205 OP. Mortgage balance: £93,376.94
    23. May 2014 - £277.07 OP. Mortgage balance: £93,003.87
    24. June 2014 - £275 OP. Mortgage balance: £92,478.36
    25. July 2014 - £109.14 OP. Mortgage balance: £92,193.06
    26. August 2014 - £215 OP. Mortgage balance: £91,767.93
    27. September 2014 - £75 OP. Mortgage balance: £91,439.17
    28. October 2014 - £94 OP. Mortgage balance: £91,175.50
    29. November 2014 - £161.25 OP. Mortgage balance: £90,930.75
    30. December 2014 - £460 OP. Mortgage balance: £90,430.75
    -
    31. January 2015 - £550.61 OP. Mortgage balance:£89,201.76
    32. February 2015 - £131.90 OP Mortgage balance: £88,925.91
    33. March 2015 - £1013.04 OP.
    34. April 2015 - £5 OP. Mortgage balance: £87,351.93
    35. May 2015 - £100 OP. Mortgage balance: £87,071.08
    36. June 2015 - £300 OP. Mortgage balance: £86,771.08
    37. July 2015 - £250 OP. Mortgage balance: £85,800.80
    38. August 2015 - £225 OP. Mortgage balance: £85,483.93
    39. September 2015 - £0 OP.
    40. October 2015 - £100 OP . Mortgage balance: £84,989.91
    41. November 2015 - £0 OP.
    42. December 2015 - £0 OP.
    -
    43. January 2016 - £0 OP Mortgage balance: £83,930.78
    44. February 2016 - £0 OP
    45. March 2016 - £300 OP Mortgage balance: £82,940.85
    46. April 2016 - £405 OP Mortgage balance: £81,948.51
    47. May 2016 - £575 OP Mortgage balance: £81,530.13
    48. June 2016 - £250 OP Mortgage balance: £80,512.43
    49. July 2016 - £350 OP Mortgage balance: £80,118.17
    50. August 2016 - £355 OP Mortgage balance: £79,262.39
    51. September 2016 - £484 OP Mortgage balance: £78,534.44
    52. October 2016 - £325 OP
    53. November 2016 - £0 OP
    54. December 2016 - £0 OP

    55. January 2017 - £500 OP Mortgage balance: £77,036.54
    56. February 2017 - £0 OP
    57. March 2017 - £0 OP
    58. April 2017 - £5 OP
    59. May 2017 - £116 OP Mortgage balance: £75, 234.00
    60. June 2017 - £190 OP Mortgage balance: £74,768.95
    61. July 2017 - £33.05 OP
    62. August 2017 - £15 OP
    63. September 2017 - £175 Mortgage balance: £73,537.04
    64. October 2017 - £150 Mortgage balance: £72,650.23
    65. November 2017 - £7 OP Mortgage balance:£72,213.37
    66.December 2017 - £100 OP Mortgage balance: £72,207.97

    67. January 2018 - £57.30 OP Mortgage balance:£71,813.60
    68. February 2018 :(
    69. March 2018 :(
    70. April 2018 - £5 OP
    71. - 75. - Oh dear
    76. October 2018 - £25 OP
    77. November 2018 - :(
    78. December 2018 - £12.90 OP Mortgage balance: £67,823.96

    2019

    79. January 2019: £25 OP
    80. February 2019: £50 OP
    81. March 2019: £35 OP Mortgage balance: £66,685.48
    82. April 2019
    83. May 2019

    84. June 2019 £25 OP (so far)

    OP aim for 2012: £3000. Total 2012 OP: £2264.80 (75.49%)
    OP aim for 2013: N/A. Total 2013 OP: £666.58
    OP aim for 2014: £2500 Total 2014 OP: £2503.39 (100.1356%)
    OP aim for 2015: £2500 Total 2015 OP: £2675.55 (107.02%)
    OP aim for 2016: £2500 Total 2016 OP: £3044
    OP aim for 2017: £3000 Total 2017 OP: £1291.05
    OP aim for 2018: - Total 2018 OP: £57.30
    OP aim for 2019: £300 Total 2019 OP to date: £135
    Total OPd: £12,586.27.67


    Mortgage at highest: £102,000 (May 2012)
    Outstanding mortgage balance at last check: £66,685.48
  • NPowerUser
    NPowerUser Posts: 409
    Mortgage-free Glee!
    Forumite
    Check the Terms and Conditions of your mortgage.

    I checked the small print on ours and found out that during our fixed rate deal over 2 years, the maximum overpayment was 10% per year of the balance owing at the year end.

    After 2 years, most lenders including ours, do not restrict the amount you could overpay.

    Good luck in paying it back quicker. Its not uncommon for mortgage holders to pay back twice what they borrow and sometimes a bit more, over the life of a mortgage.

    Owning beats renting any day. :)
  • Beckyy
    Beckyy Posts: 2,830
    Name Dropper First Anniversary First Post Combo Breaker
    Forumite
    Thank you NPowerUser!

    I've phoned Woolwich today to find out the details. We can overpay up to 10%/£10,225 (I wish!) between 1st June 2012 and 31st May 2013. He's also given me the Sort Code and Acc. no. I need to make overpayments by standing order/bank transfer.

    He said it won't reduce our term, but we will pay it off quicker (um?). Also, that it won't alter our monthly DD unless we make an overpayment which is 3x or more our monthly DD, in which case it wil be recalculated. I'm still trying to get my head around the details exactly, but I think I've just about grasped it.

    The plan is to (hopefully) overpay by £500 per month at the moment. I've set aside £250 so far this month and I'm hoping we'll have enough left by payday to bring it up to £500 for our first overpayment. I'm far too excited by it!
  • marko21
    marko21 Posts: 25 Forumite
    I'm with Woolwich but now past my fixed deal. I haven't looked at a new fixed rate a it's at 2.49% (1.99+ base rate), I overpay by standing order like you mentioned, just wish I could view on line, surely woolwich should get this sorted!
    Mortgage @ April 2010 £86000 (18yr 2 yr Fixed 3.99 then 1.99 over BR - Currently 2.49)
    Balance @ Jan 2017 £56992
    Over payment's
    to date £2100
    MF Date - March 2020 or sooner
  • greent
    greent Posts: 10,669
    First Post Name Dropper First Anniversary Photogenic
    Forumite
    Beckyy wrote: »

    He said it won't reduce our term, but we will pay it off quicker (um?). Also, that it won't alter our monthly DD unless we make an overpayment which is 3x or more our monthly DD, in which case it wil be recalculated. I'm still trying to get my head around the details exactly, but I think I've just about grasped it.

    The plan is to (hopefully) overpay by £500 per month at the moment. I've set aside £250 so far this month and I'm hoping we'll have enough left by payday to bring it up to £500 for our first overpayment. I'm far too excited by it!

    I'm pretty sure he means that you'll pay it off quicker - but Woolwich won't officially reduce your term to reflect your OPs (C&G are pretty similar to this) It means that your paperwork/ statements etc will still show your original mortgage date - but you can feel smug in the knowledge that that won't be the case :D


    Welcome! :D
    I am the master of my fate; I am the captain of my soul
    Repaid mtge early (orig 11/25) 01/09 £124616 01/11 £89873 01/13 £52546 01/15 £12133 07/15 £NIL
    Net sales 2024: £20
  • Beckyy
    Beckyy Posts: 2,830
    Name Dropper First Anniversary First Post Combo Breaker
    Forumite
    Thank you! That makes it much clearer :)

    Marko21, I couldn't agree more. It's so silly not letting peopel view them online.

    Not a lot to report today. I had a NSD, but also had a letter saying that I underpaid tax by just over £100 last year. A few of my collegues got the same letter for exactly the same amount, so I'm going to speak to payroll and look into it.
  • DawnW
    DawnW Posts: 7,423
    Name Dropper Photogenic First Post First Anniversary
    Forumite
    greent wrote: »
    I'm pretty sure he means that you'll pay it off quicker - but Woolwich won't officially reduce your term to reflect your OPs (C&G are pretty similar to this) It means that your paperwork/ statements etc will still show your original mortgage date - but you can feel smug in the knowledge that that won't be the case :D


    Yes, C&G still think we will keep going till the end of our term :rotfl:

    In their dreams :D
  • QB_Wolf
    QB_Wolf Posts: 722 Forumite
    Beckyy wrote: »

    The plan is to (hopefully) overpay by £500 per month at the moment!


    £500 seems to be the magic number, in terms of OP per month and what I'd like to get t0
    Start Date 16/09/2015
    Original amount outstanding = 225,000 Current amount outstanding =199,812
    Original LTV = 64% Current LTV = 49%
    Original Pay Off Date = Sep' 36 New Pay Off date = Sep' 36
    Original Dly Int = 17.17 New Dly Int = 17.17 Total OP = £1319.31
  • unhappy_shopper
    unhappy_shopper Posts: 1,304 Forumite
    We are also with W00lwich @ 2.49%. I agree it is a hassle not being able to see the mortgage account online. We pay online through our B@rclays account using the mortgage sort code and account number whenever we have some spare money.

    Good luck in your MFW journey.
    Mortgage: @ Feb. 2007: £133,200; Apr. 2011: £24,373; May 2011: £175,999; Jun 2013: ~£97K; Mar. 2014 £392,212.73; Dec. 2015: £327,051.77; Mar. 2016: ~£480K; Mar. 2017 £444,445.74
  • Beckyy
    Beckyy Posts: 2,830
    Name Dropper First Anniversary First Post Combo Breaker
    Forumite
    Maybe it's their way of trying to put people off overpaying... hide it and hope they don't realise how much they could save :p

    I've not long finished work and have ended up on the computer, but found an email for a free graze box in my inbox. I've reactivated my account to recieve it, and will cancel after. I'm sure there will be some nice 'bits' I can put in OH's lunches that will shave a little of the food shopping as my £200 monthly budget is dissapearing far too quickly!
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards