2009 MF Wannabe's

Cuteybabe8

Can I be added to the list. My mortgage is currently £110,000. I am going to pay an addtional £500 per month.

Moniker

mustang1 wrote: »

I am a newbie too and am completely shocked by the savings you can make by overpaying. I have been umming and ahhing about whether or not to get a lodger in my spare room. Would give me about £500 a month (after tax) which I could use as an overpayment.QUOTE]


I think you can let a room in your house to a lodger for up to £4,250 per annum (or £354 per month) without incurring any tax - I don't think you even need to declare it. If the rent exceeds this amount you only pay tax on the difference. There is an article about it in the Guardian here:

http://www.guardian.co.uk/money/2008/jul/27/renting.property

And you can find out more information from the Inland Revenue web site:
hmrc.gov.uk

HTH

Moniker

pollys

September overpayment been paid today £1048. Happy to have made this overpayment as we didn't overpay much last month due to having to buy 4 sets of school uniform, football kit etc

pammyj74

completely forgot i was on this list sorry. Number 304

July 1st £100 OP
Aug 1st £500 OP
Sept 1st £300 OP

total for year so far £2200 110% on target (£2000)

uzubairu

MFW #157 update

August Stats:-
Overpayment in blue, Year To Date Overpayment in red and Balance in green.

Month / Overpay / YTD Overpay / Balance.
Aug/ 700.00 / 6,004.17 / 87,187.12

Already reached my initial year end target (of £88,000), so I changed it to £84,000 last month.

Nessa56

Moniker wrote: »

mustang1 wrote: »

I am a newbie too and am completely shocked by the savings you can make by overpaying. I have been umming and ahhing about whether or not to get a lodger in my spare room. Would give me about £500 a month (after tax) which I could use as an overpayment.QUOTE]


I think you can let a room in your house to a lodger for up to £4,250 per annum (or £354 per month) without incurring any tax - I don't think you even need to declare it. If the rent exceeds this amount you only pay tax on the difference. There is an article about it in the Guardian here:

http://www.guardian.co.uk/money/2008/jul/27/renting.property

And you can find out more information from the Inland Revenue web site:
hmrc.gov.uk

HTH

Moniker

Yes you can do this, it is a special scheme they set up a few years ago

NoobySaver

Number 254 reporting in for September. Overpayment of £1,601 making total overpayment for the year £6,759. That £9,000 target looking highly achievable at long last. Well done to everyone posting on here - some really amazing amounts coming off. Next month we go sub £70k for the first time ever! Very exciting.

Lynn11

No 215 reporting in I made my first overpayment of £200 for September and hope to contribute more later in the month.

waves117

Hi everyone

Forgot to report in for august......just overpayed £650 in august...that means i have reached my target for this year already.......4 months early....what a lovely feeling.........will continue to overpay.....hopefully the mortgage will finish before sept 2010 at this rate.....


good luck everyone and keep the overpayments going.

xx

Cazzdevil

I've done it. I've FINALLY (after about a year of promising!) made the first step on my way to becoming mortgage free earlier than expected.

We've been paying off some arrears for the last 6 months so when the extra payments came to an end the OH and I sorta went "We didn't actually miss that extra money did we... Let's keep the payment the same as it was, that way we're overpaying". Except when I phoned Abbey to set this up I decided to overpay by even MORE (we'd also been paying a few odds and ends of debts off and coped very well with the lesser disposable income).

So as of 1st October we're overpaying by £125 a month. Doesn't sound like much but it's nearly doubling our capital payment; our monthly minimum payment is £324 which is made up of £150 interest and £174 capital. This is the very minimum I plan to overpay by but it's a step in the right direction at least, and even if we only make this overpayment we'll still clear our mortgage 5 years early (10 yrs instead of 15). Score!

So there you have it, I'm officially now an MFW Yey!

:T:T:T