Do you admit to overpaying?

Ed_Zep

Good question.

I remember talking to someone at work about mortgages and he owed about £64K or something I said mine was more like £80K. About 3 years later he still owes about £60K and mine is down to £48K( though I haven't mentioned this to him anyone else). He earns the same as me, too and isn't particularly extravagant.

I sent him a link about how o/p could shrink his mortgage but I don't think he's done anything about it. Even £10 p.m. makes a difference.

I wouldn't tell anyone I don't like, to be honest. They don't deserve it.

After all, those who understand compound interest are destined to collect it. Those who don't are doomed to pay it.

[Deleted User]

I only told people if they said they were also overpaying.

ajmoney

I have never really told anyone as I once mentioned that I was a regular saver and now that person refers to me as tight! However speaking to that person since and various others I am surprised by how many of my friends overpay. However this only seems to have been since the sharp interest rate cuts at the end of last year, I had already been overpaying for a year. It seems far more acceptable to overpay than save amongst the people I know, but I am happy doing both.

Peelerfart

I've been lurking on this thread since it first appeared,and I must admit I thought it was a silly question "do you tell anyone you OP ??" - Why Not !

How wrong I was. I never realised there was so much negativity about when ppl learn that you are overpaying. As a consequence I freely and readily told anyone who was interested I was an OP'er.

I may need to reavaluate this stance

ShelleyC_2

I don't overpay at the moment as no mortgage! But I'm saving like crazy and have suggested OP to a few friends and family but afraid they all think low interest rates are great - more hols /clothes and spending galore I'm afraid :rolleyes:

savlad

I think that the overriding problem with all of this, is that talking about money affairs just isn’t really a very British thing, and that as a nation generally we are fairly illiterate about money and personal finance, as we are never taught the basics at anytime during our education.

Couple that with the past 10 years of ridiculously easy credit, historically low interest rates and steadily increasing house prices and you have a nation that thinks that 115% mortgages are normal, and that buy now pay later is the way to go as what you have will be worth significantly more in the future. All in it makes most peoples reactions to overpaying a “negative” one – it’s something they don’t understand or care why they should understand it.

I suspect you’d get a similar response from the majority if you were talking basic pension plans, other savings vehicles or even just talking about paying off outstanding credit cards, not just if you are talking about mortgage overpayments.

Personally I’ve talked to a couple of my friends about it and encouraged them to do the same, but I don’t think it’s really made much of an impact. I keep fairly quiet about it in general. I will however, be shouting long and hard about it once it’s all gone!

Bernie

...a bit off topic but a different perspective!

We didn't over pay but instead offset 100% almost from the start of the mortgage. The mortgage payments are unchanged and will run for the full term of the mortgage but there is no interest involved. We're repaying the capital sum borrowed over 10 years.

Originally, the objectives were to protect our ISA investments (from TESSA days) and we didn't want all our capital tied up in property. We could have bought outright but only by cashing our hard-built up ISAs (over 10 years+ ?)and spending every penny of cash we had. Didn't want to do that so chose offsetting as the way to preserve our ISA and retain access to large cash deposits if needed.

Now, 3 years later, we've replaced the ISAs with other cash (redundancy, policies and savings) and placed them elsewhere. Now each month, the mortgage payment is taken from the cash deposited. If we need to draw a lump sum over the remaining 8 years to run, it's there if we need it.

Somehow they did catch us- for £2.84 interest - didn't have the cheek to query it, assume that was charged during the time they took to key the "Enter" button!
:beer:

Ed_Zep

I'd agree with what's been said. British people aren't good with money because they don't like talking about it, hence they're less likely to understand it.
I wasn't taught to budget at school, I don't know about anyone else.

busiscoming2

I have mentioned it to some people, and have had a mixed reaction: Some say they do too, whilst others just nod and say Mmmm, giving the impession they don't really understand.

littlemrtinkle

i get more of the hmmm i don't care attitude :-)