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Morgage Payments?

edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
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stormbreakerstormbreaker Forumite
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edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
Not sure if this is the right thread to be asking but here goes.

We are hoping to be morgage free very soon. Our minimum monthly payment is under £50 but we overpay by £700 every month. Last month I sent off a cheque for £500 extra and we were sent a letter with a new minimum monthly payment.

This has got me wondering as to whether we should have a new monthly payment every month, given our over payments?

Replies

  • dimbo61dimbo61 Forumite
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    You seem to have a flexible mortgage ( perhaps you are on the SVR ?) because you can make such large overpayments without any fees or ERC charge.
    Because you have paid £500 in one it must trigger a recalculation in your mortgage payment.
    Now you could ask for the monthly payment to remain static or allow the lender to recalculate each time you overpay it will make no difference in your case.
    GOOD LUCK on the MF journey
  • edited 30 January 2010 at 7:19PM
    stormbreakerstormbreaker Forumite
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    edited 30 January 2010 at 7:19PM
    Thanks for the reply. If it will make no differance then I will leave as is.

    I can't wait to be morgage free but often wonder who we will celebrate it with!!!! My MIL and other family members already thinks we are very rich....which we are NOT! and too many friends and work colleagues, are young and struggling at times to make ends meet....I will want to shout it from the roof tops but might just have to keep stume.

    Anyone else have this problem?

    This will only be short lived anyway as it is our intention to look into a morgage for a flat for our son rather than paying rent!
  • dimbo61dimbo61 Forumite
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    You can shout all you like on this website with like minded people!
    Dont go on the bankrupt and living with it site they may put out a contract !!!
    Its not about how much you earn its how you chose to spend the money each month.
    Martin is right we have lots of people trying to sell you stuff no one telling you how to save ( except in crap accounts that change rates too often)
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