Hello! Brand new MFW...with the full 25 years ahead !!

jamtart6

thanks pixelwife!

just been playing with a snowball calculator (this is the only debt ive ever had) and gutted to find that £380 of our first years monthly payments (of £500 per month) will be just the interest booo! don't like loans already!!

evab_2

Welcome jamtart, hope you enjoy moving in and starting a new chapter in your life.

Lynn11

Good luck on your plans to overpay from day 1 and it does get addictive when you start and see the progress it makes. We made overpayments from year 3 when we moved to our current lender and hope to continue when we can, so we can eventually move into a larger house. Good luck and enjoy your new home.

jamtart6

hello! no overpayments from me yet, but hurrah... my first payment has gone out today! 299 payments to go (or less if I get my way:D)

ailuro2

if you overpay by £100 a month on a 100K mortgage at 3.5% you will pay £600 a month instead of £500...........


guess how much you'll save??

£13,093.25

(yes, that's a massive amount!!:D



or to put it another way, your mortgage would finish 5 yrs 11 months early.

StuartGMC

JamTart
Good to hear that you've looked into things in advance. I hope you have also built up your emergency savings before you push too hard on the OP? Usually recommendation is 3-6-9 months income depending on circumstances.

We too started overpaying virtually from the start, but the amount per month dropped once our daughter was born and OH went part-time in 1997 (and still is). Even with this case, at 12yrs we had saved 3yrs 4mnths on the mortgage when we moved to an offset in 2006. We took a 10yr mortgage then but hope to clear in October this year, saving 10yrs overall.

It will take time to be able to see the impact, but I'd recommend you keep a parallel record of what the situation would be if just paying the minimum each time it is adjusted and compare with the actual position thanks to your OP. This should help.

Do however, remember to budget for items which will need replacing in future and for holidays etc, it is a very long journey so do have some fun too, and set some short-term targets to keep motivated.

Best wishes

jamtart6

Thanks guys! well as we arent living in the house yet (renovation) we don't have to pay council tax for the first 6 months..but as we should probabaly get used to paying it I think it would be a good idea to OP the mortgage by that amount c, £100 per month! I have played with the snowball calculators and

Stuart -Yes an emergency fund is in place, thanks for the tip though. Whilst we are both in full time employment on decent wages we will try and go for it. When we have a family etc. I imagine things will be a lot tighter and there won't be any spare funds!

The fun bit is going to be trying to get my OH to agree to OPing!

abouttimetoo

Hi Jamtart

Yes, good idea about paying the council tax to the mortgage; would you be in a position to do that for other bills you might not yet be paying e.g utilities etc (sorry, I don't know whether you already pay these where you currently live)

Regards
ATT

Kaz2904

I'm assuming your mortgage is £90000 and your interest rate 4.5%. £100 overpayment each month will knock 6 years 8 months off your term. Don't forget that every Jan/Feb you have council tax free and every Feb/March you have rates free. These are painless overpayments to make.
Every year I get my credit card cashback in March. That goes straight to the mortgage too. If you are renovating then presumably you are buying lots of stuff, try to get a cashback credit card and pay for as much as you can on that. Also find out what homemover schemes there are for DIY sheds in your area. Sometimes you can get a 10% discount.
Good luck with your over payments!

jamtart6

Hey guys! We have just looked at our finances (with regards to renovating, not general bills) and it is quite scary how fast £15k can be eaten up!

Basically not paying any rates at the moment (or minimal) as not living in house, no food bills etc (living with parents)

We have however both just got new jobs So that will help majorly with overpaying..I'm just not so sure we can do that yet as we have 1000001 other things to pay for first! I fear I may have been a little ambitious!

I agree though free council tax months etc. are perfect time for overpayment!