2010 MF Wannabes

wilsons

sassyblue wrote: »

Happy new year to you too and Well done! You're a quarter of the way to your target and less than 1/12th of the way to the end of the year :beer:

Check you out! You've almost over paid my whole years allowance...well done you!

sassyblue

wilsons wrote: »

Check you out! You've almost over paid my whole years allowance...well done you!

ah thanks, but to be fair we only overpaid by £300 this month, there were £700 worth of overpayments in there already - so l can't claim total success

Do you think you're going to go over your target, you've started so well!

Kerfuffle

Made my first overpayment of the year.

January = 164.55 :T

Hopefully, fingers crossed, this should happen every month now, although now I'm trying to figure out ways to increase this.

Feb and March will have the two 'free' council tax payments going to the mortgage, any others ideas gratefully received :rotfl:

Well done and good luck everybody.

canne_2

I made another overpayment yesterday...AU$20.04 and AU$24.87 today...

miss_undastood

Firstly I'd like to apologise for this novice post!
I'm quite new to the whole mortgage thing, and I've set myself a challenging target this year of £7,200. I'm not looking to stretch myself, I've budgeted and I can realistically get there, it will just require strict financial monitoring and not buying stuff I dont need in the supermarket! I do have a buffer if the boiler breaks, emergency car fund etc and I'm not planning to use this towards my overpayments at all.

I'm on my own, in my first house and struggling to make sure that I can cover bills I leave my current account with the bare minimum I think this month I have about £15 left over. Should I OP this or wait?

However I was wondering, I've seen people are making payments of £10, £20 etc. Do these really make much of a difference? Are you better to make small but regular contributions as and when you can afford them, or save up a bit and pay lump sums of £100, £200 etc?
I appreciate interest is calculated daily, and with 25 years left on a mortgage you're probably paying a lot of interest on each £10 you borrowed. Therefore are you best to overpay as much as you can as early on as you can or what?

I'm just interested in everyone's thoughts.

PS Congrats to everyone who's made or will be making a contribution towards the OP target this year already - a fantastic effort.

zavarony

miss_undastood wrote: »

Firstly I'd like to apologise for this novice post!

However I was wondering, I've seen people are making payments of £10, £20 etc. Do these really make much of a difference? Are you better to make small but regular contributions as and when you can afford them, or save up a bit and pay lump sums of £100, £200 etc?
I appreciate interest is calculated daily, and with 25 years left on a mortgage you're probably paying a lot of interest on each £10 you borrowed. Therefore are you best to overpay as much as you can as early on as you can or what?

I'm just interested in everyone's thoughts.

Try this mortgage calculator - http://www.egg.com/visitor/0,2388,3_54988--View_1028,00.html - you can play about with the figures and see how much difference it makes to you. There's loads of them about - the BBC have one and so do lots of banks - theres prob some lurking about the forums ......

I personally squirrel bits and pieces away as and when I can as my interest is calculated daily (rather than wait til the end of the month )although I also plan to ask the Yorkshire Bank to increase my minimum payments to make sure I pay a bit every month then add to this with additional OP's where possible.;)
HTH
Zav

miss_undastood

wow, thanks for the quick reply.
Maybe lots of small payments would make a bigger sum seem more achievable. Like if i have a weekly budget and any extra goes to the mortgage.

It's hard to do that when getting paid monthly though. Maybe I should draw cash out each week as I'd then spend less maybe?

curlygirl1971

Hi Missundastood

Everyone is different but what works for me is writing down (well on a spreadsheet actually) what I earn and then deduct bills and any spending so I always have an idea of what I can consider surplus. I even go so far as to forecast my income/spending for whole year and build in planned OP's - then any budget I don't spend is extra OP. I do have savings to fall back on though.

Every penny does count. If it helps then work out how many days you have left on your mortgage and how much each of those days 'costs' - that will motivate you to OP small amounts

chirpchirp

When considering whether it pays to pay in small amounts there are two things to consider.

1. Motivation - many people find it easier to pay in small amounts as it keeps them focused and motivated. Seeing the money dripping into the account makes them feel that they have achieved something.

2. How is your interest calculated? If your interest is calculated daily then it could be worthwhile as each small amount will save you a small amount of interest. Over a long period of time this will build up and make you savings.

With my mortgage, interest is applied daily but overpayments do not take affect until the following calendar month unless I make a lump sum payment of £1500!

pineapple_beach

Hi there
I do the same as curlygirl. Every time I get paid I immediately take off all the direct debits etc, do an online check of credit card bill etc, think about any extra outgoings this particular month then plan the OP. I usually leave a cushion just in case of £100 (but I don't have other fallback savings, I use credit card if emergency), then OP that when I next get paid...
Just done £800, and at the end of the month the regular OP of £270 goes out, so on target so far....