How much did you overpay in 2009

SimbaSimon

Hi All,

Just curious to know how everyone got on in 2009 with their overpayments and what the plan is for 2010. Will you be overpaying more or less?!

Last year was my first year of overpayments with now 32 years on the mortgage term to go. We paid £480 over the year so an average of £40 a month. Having worked it out if we carried this on we could save about 3-4 years and anything from £7,000 - £22,000 depending on how interest rates go.

Hopefully for 2010 I'll be overpaying more and plan to do one lump sum so Nationwide actually decrease the mortage term as at the moment it still is the same. :j

Ed_Zep

Does saving to a higher interest account count in lieu of overpaying?

Rosemary_Jane

I was very lucky last year managing to pay down £12,208.96, of which 9,409.96 was overpayments, and the rest on the regular repayments.

This was possible because my fixed rate finished, so the interest rate fell dramatically, and I could then throw in the extra savings that I had been unable to pay earlier, as I'd been limited to £500 per month during the fixed rate.

It's also so much more dramatic in the later stages, when the total amount is getting lower, as the interest becomes minimal, and the end is in sight, encouraging me to pay as much as possible.

I took out a £40,000, 12-year mortgage in June 2007, having paid off the last one early.
By the end of December 2007, there was £37,100 left; at the end of 2008, £30,500, and at the end of 2009, £18,300.

I might even get rid of it this year, with a bit of luck, although I've decided to take my boys for a short holiday this year, which will be our first holiday in 13 years. (they are autistic, so it's hard as a single parent).

Rosemary

SmlSave

Hi Simba

Hope to be overpaying more this year!

Kate_A

I only paid about £400 OP last year as I really only started doing this properly this year. My aim this year is to OP £4000-5000 ish. Paid £380 so far this year so a good start.:D

SimbaSimon

Ed_Zep wrote: »

Does saving to a higher interest account count in lieu of overpaying?

Sure why not, as long as it'll be used against your mortgage eventually.

If you can get a higher interest then well worth doing. For me theres no savings to beat my mortgage so it all goes to the mortgage and a little bit for the emergency fund.

Jock_Tight

Last year we paid £11,772 off the mortgage, this was made up of £6,780 in regular payments and £4992 in overpayments.

For 2010 we will be looking at over £6000 in overpayments (£1242, £857+£385 fixed DD overpayment made in January already)

Overpayments are set such that we can be mortgage free Dec 2012! :cool:

golfiematt

i paid £3000 after i changed my term in july but before that did overpay, now im not sure what counts as an o.p. as i changed the term so its a different basic amount that is debited from my bank each month. good luck all for 2010

Ed_Zep

Not sure how much I saved last year instead. Started the year with o/p totally £2.5K then the rate tumbled to 1%, so I was very lucky.

From having a large-ish mortgage of 83K and savings of about 16K about 5 years ago, it's now 47K and savings of about 35K. Amazing how it's tumbled. I might even have enough to pay it off this year.
:j

Am so glad of this web site and the support we give each other, though I originally got the idea for overpaying from the Mortgage Shrinker web page. Couldn't believe how much even a small, regular o/p helps.

Martain_Loose

Hi Simba and the gang, last year Mrs Loose and I overpaid to the C&G by a surprising £28k, still got around £29k to go and hope to get rid of that in the next couple of years. Every overpayment made leaves us owing less in monthly repayments so we can save more for future overpayments, it's a win-win situation.

I'd like to thank Martin Lewis, no relation, and all the other MFWs for their encouragement.

Cheers, Martain Loose.

uzubairu

We overpaid by £10,700 last year.

Mortgage reduced by £15,600 in 2009.
£9,050 were direct overpayments (into the Overpayment Reserve).
£1,650 from reducing the term.

We are on a fixed rate with the Nationwide (4.79% until 2016) and we managed to overpay £9,000 with no charges.

The best thing about last year was that we have paid back more in 2009 than we did in the previous 2.5 years.
I think this is due to the hints, tips, advice and encouragement from this site.

Our current mortgage of £113,000 was taken out in 2006 (25 year term) and I'm hoping to have it down to £65,000 by the end of the year (which will be a total reduction of £17,000).

Original MF date - June 2031
Current MF date - October 2018