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Mortgage-Free Wannabe Welcome and Explanation
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# 221
omarsgirl
Old 11-11-2014, 1:39 PM
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Join Date: Jan 2014
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Hi I would like to join to give me an incentive.

We owe 52000

We have 16000 in a bond that is maturing in February so are going t use that to start with. I have set up a dd to overpay by 100 per month. Along with any extras we can pay, we should be MF in about 3 years,
Leaving us lots of time to save for retirement.

That's the plan- it wont leave us skint-we will still have an emergency fund and we like our holidays and going out so it's a sensible amount.
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# 222
Seeingwhatsbest
Old 12-11-2014, 11:14 PM
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Default Am I doing it right or wrong?

Hello all,

I'm a new member to the MSE site, but a regular user of its Overpayments Calculator especially.
I'm seeking any advice if I'm doing wrong with my mortgage overpayments...or reassurance if I'm doing right

Mortgage type: Repayment, standard variable rate 4.99%
Interest calculated: Annually

Since July 2011 I have been making overpayments into my mortgage account, which then was at 43,429 with exactly 15 years remaining. This has included overpayment through my direct debit, and also one-off large capital payments from time to time, which reduced the subsequent mothly payments. In April my lender informed me that the mortgage term had been reduced by 9 months.

Now the balance remaining is 28,080 and with my normal monthly overpayments of 100 currently debited from my account I will end the mortgage in February 2022.

To date I have overpaid 10,100 in total, but am thinking I may have done a mistake in not requesting to keep monthly payments the same since making the occasional large capital payments i.e. when the first letter telling me about the payment change arrived.

What do other members think? Am I going about it completely wrong, or maybe right?

Hopefully I'm making sense with the above. Thanks in advance
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# 223
andysdad
Old 16-11-2014, 11:18 AM
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Join Date: Apr 2006
Location: South West
Posts: 122
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Quote:
Originally Posted by Seeingwhatsbest View Post
Hello all,

I'm a new member to the MSE site, but a regular user of its Overpayments Calculator especially.
I'm seeking any advice if I'm doing wrong with my mortgage overpayments...or reassurance if I'm doing right

Mortgage type: Repayment, standard variable rate 4.99%
Interest calculated: Annually

Since July 2011 I have been making overpayments into my mortgage account, which then was at 43,429 with exactly 15 years remaining. This has included overpayment through my direct debit, and also one-off large capital payments from time to time, which reduced the subsequent mothly payments. In April my lender informed me that the mortgage term had been reduced by 9 months.

Now the balance remaining is 28,080 and with my normal monthly overpayments of 100 currently debited from my account I will end the mortgage in February 2022.

To date I have overpaid 10,100 in total, but am thinking I may have done a mistake in not requesting to keep monthly payments the same since making the occasional large capital payments i.e. when the first letter telling me about the payment change arrived.

What do other members think? Am I going about it completely wrong, or maybe right?

Hopefully I'm making sense with the above. Thanks in advance
Congratulations on overpayinghttp://static.moneysavingexpert.com/images/forum_smilies/beerchug.gif
If I follow it looks like your lender is sometimes reducing the length remaining and sometime reducing the monthly payment.
If you are looking to pay off early you want them to only shorten the term. The key thing for you is to pay at least your original amount into the mortgage monthly so you could just increase your over payments in the short term whilst you give your provider the instruction to shorten the term
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# 224
Seeingwhatsbest
Old Today, 7:22 PM
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Join Date: Nov 2014
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Default Thanks andysdad

Thanks for your reply. I have been thinking that requesting my lender to reduce the term and not the monthly payments is what I should really be doing. Hopefully in the new year I'll be able to increase my overpayments further to speed up my mortgage-free mission...
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