1st over payment made

elsnraeh · 2 August 2015 at 11:13AM

Hi all

We have just moved into a new house 2 months ago and have just made our 1st over payment.
I have to admit although its a small amount Im feeling quite smug.

I have set up a regular payment of 123 a month as it rounds our payment up to a nice figure.

Using the martin MSE overpayment calculator it seems it will save us around 11k in total and pay off the mortgage 5yrs 3 months earlier.

Do other people use regular payments or one offs? what do you find more useful?

We have a 2yr fixed rate so need to try and pay off as much as possible within the next 2 years so we can hopefully negotiate a good rate next time round.

ourcornercottage · 2 August 2015 at 12:03PM

Well done on your first over Payment

I do a mix of both regular and 1 off OPs but as your on a fix be careful to check the t and c of your mortgage as there will probably be a limit to the amount you can OP per month or per year.

Good luck :-)

Luckyinlife · 2 August 2015 at 12:43PM

well done on the first OP :]

Mix it up if you can stick to your 125 and save if you can as well then when you think you can chuck a bit at it do it as and when you can will add up big time over the years

Good luck

bexster1975 · 2 August 2015 at 2:16PM

I second previous comments. I'm not sure how small your OP was, but I started with £50 a month when I first got my mortgage and now I'm 2 months off clearing it in ten years not 25! Small, regular amounts really do add up.

Well done you :beer:

Bexster

A_Frayed_Knot · 2 August 2015 at 8:45PM

I read on this forum somewhere;(wish I could remember who, as it has stuck with me)

"Every pound overpaid, is a pound less you have to pay interest on" If you keep this in mind then you cant go far wrong.

So far I have made 3 large overpayments but since reading the above comment, will be making overpayments each month and whenever I have some extra (eg overtime) I will buy myself a treat - the rest will go as an overpayment.
As previous comments though - watch out for restrictions in your mortgage.

And well done you - it gets quite addictive.

midnight_child · 2 August 2015 at 9:44PM

I took a similar approach to you and overpaid as much as I physically could in the first two years to get a much better deal. I use a standing order to top up my standard payments, but this is the only way I could find to overpay online with H$BC.

When I started my standing order was small as my financial position was tight (I spent everything on my deposit and initially had to buy cooking things, furniture, lawnmower etc). However, as I had more left each month this was increased accordingly.

Well done on starting so early, that £123 alone has probably saved you £200 in interest :money:
MC

diamondsonly · 3 August 2015 at 3:45PM

Wow well done on starting so soon. As people above have said it does get addictive. Every £ does count. I recently OP by £2.64 just to round the mortgage figure off to £146,300. Good luck on your journey x

A_Frayed_Knot · 3 August 2015 at 4:58PM

[QUOTE=diamondsonly;6890762

A_Frayed_Knot · 3 August 2015 at 5:16PM

OMG diamonsdsonly

I have just read your signature !!!

Mortgage at 01.7.15 - £157,469.64
Mortgage at 17.7.15- £146,302.64
Target MFW Dec 2020

You have just managed to pay in 17 days nearly my whole years salary on a bad day, and theres me saying - pay another £. Sorry!!!

Ps. My EEK's and red faces don't seem to be working, but if they were there would be a whole lot on here.

A Frayed Knot x

1st over payment made

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free