Are we in a small minority?

RosieTiger

jamesd wrote: »

I hope not. It's a really poor topic that doesn't point out the good reasons not to overpay, but just looks at interest saved on the mortgage. No discussion of interest lost, early retirement lost, reduced living standards during the overpayment and in retirement and such. Not even discussion of how to most efficiently clear a mortgage.

There's even discussion of overpaying when mortgage interest rates are low and below savings rates as if that's a good thing, not a bad one.

and as I have said to others with your view before, this is a MORTGAGE FREE WANNABEE board and not a I WANT TO CONSIDER ALL OPTIONS ON MY FINANCES board.

I don't believe anyone on here choosing to OP is stupid, I equally assume the same for those on the investments board and therefore opt not to go on there and tell them they are discussing a really poor topic.

RosieTiger

jamesd wrote: »

Because this board is about becoming mortgage free, not just about making regular overpayments on a mortgage. And as Martin put it in that first message, it "isn't about cutting back on everything, it's about running a niced balanced life with no waste to clear your mortgage".

There's more than one way to become mortgage free and more than one way to do it in the context of a nice balanced life. Regular mortgage overpayments are also a pretty wasteful way of clearing a mortgage, given the other ways it can be done.

If regular overpayments are the appropriate way for you to go about clearing a mortgage with a nice balanced life, that's entirely fine. For many people it is the best way to go. My balance includes things like being able to support myself if I can't work, retiring early and living well, along with clearing the mortgage at an appropriate point in that planning. And trying to do all of those things with a lower level of wasted money than just making regular mortgage overpayments.

and you will find that the regular contributors on this board would never advocate cutting back to zero lifestyle or indeed not having an emergency fund before OPing.

But, this is the path we have chosen.

jamesd

RosieTiger wrote: »

and as I have said to others with your view before, this is a MORTGAGE FREE WANNABEE board and not a I WANT TO CONSIDER ALL OPTIONS ON MY FINANCES board.

That really gives the impression that you were trying to hound them out of this section because you disagree with their way of clearing their mortgage. Is that your intent?

RosieTiger wrote: »

tell them they are discussing a really poor topic.

I think that this specific thread/topic about perceived lack of people overpaying isn't of sufficient value to be worth being made a sticky topic. The topic is fine and interesting to discuss. Making it sticky? A different thing.

RosieTiger wrote: »

and you will find that the regular contributors on this board would never advocate cutting back to zero lifestyle or indeed not having an emergency fund before OPing.

But, this is the path we have chosen.

That's fine for those who want to become mortgage free in that way.

RosieTiger

jamesd wrote: »

That really gives the impression that you were trying to hound them out of this section because you disagree with their way of clearing their mortgage. Is that your intent?

I think that this specific thread/topic about perceived lack of people overpaying isn't of sufficient value

No James, I wouldn't dream of hounding anyone for having a different view, that's a matter of record in my posts.

Neither would I bother to go on to your posting and tell you that your ideas are poor either.

As you say, there is more than one way to do this. You are entitled to your view, but please don't tell me that my view is a poor one.

pawlala

The Independent online this week promoting OPing, warning against going over your limit

The capacity to make overpayments can be very beneficial as these can substantially reduce both the length of your mortgage and the costs involved, but this can also throw up some potentially nasty charges, warns Mr Ossei at uSwitch.com. "People can get caught out over how much they can overpay in a year," he explains. "Every mortgage provider has a different percentage as far as this overpayment is concerned so borrowers need to ensure they don't exceed this figure or they may be penalised."

An exit fee is often charged by lenders when you redeem your mortgage, either because you have finished paying it off or because you want to switch to another lender. The costs of these have more than quadrupled over the past decade. In 1996, the average exit fee was around £50 and today, now it is approaching the £300 mark, although some lenders charge nothing.

http://www.independent.co.uk/money/spend-save/the-mortgage-dilemma-ndash-should-you-fix-or-go-variable-2280397.html

Thrugelmir

jamesd wrote: »

I hope not. It's a really poor topic that doesn't point out the good reasons not to overpay, but just looks at interest saved on the mortgage. No discussion of interest lost, early retirement lost, reduced living standards during the overpayment and in retirement and such. Not even discussion of how to most efficiently clear a mortgage.

Why the negativity?

Statements such as "reduced living standards during the overpayment" show a very short sighted view. From my own experience life is very unpredictable. Full of ups and downs. Once a property is owned outright then that is one of life's major worries removed forever.

misscousinitt

I am fairly new to OPing, but still think it is a good idea.

I feel that a combined approach to financial security is the right way forward. I am OPing on the mortgage, saving for my future, living well and enjoying the money I have now - I may not have it in the future if life circumstances change. I am certainly not going to scrimp and save every penny I have to reduce the mortgage - if I was to do that it would be gone in no time at all, but I would be as miserable as sin whilst doing it - life is for living.

It might not be everyone's cup of tea, I think OPing is the most straight forward way to reduce the mortgage, but I am certainly not going to judge anyone who wants to do it another way - by the same token I believe that others should not judge something that to the majority of people is an effective way of becoming mortgage free.

Jamesd - I wish you luck with your endeavours.

ally18

I have today made my first official op to both of my mortgage balances. At just over £18 for one and £7 for the other, it may seem like a pathetic amount to pay but for me, it is the start of peace of mind.

I joined the mf board because I wanted some support from people who were doing the same thing although I do feel as if I'm right at the bottom of the scale because I don't do surveys etc or am madly selling things on ebay.

I have purely budgeted my finances to try and spend as little as I can so that I do have more money each month to throw at the debt I owe. This is purely for selfish reasons because I am worried about my future and that of my children, being on my own. I still intend to try and have a holiday and I make sure my children have treats etc so they don't lose out. I have spent the last 5 months paying off as much as I can to get a car loan out of the way because that was costing me at a higher rate of interest. That has now gone. I have saved an emergency fund though it is not enough but it is there, just in case.

My mortgage is supposed to be finished in 2036 and as I am 44 now, this thought scares the hell out of me so my reasons for overpaying are purely personal. If I can afford to pay more and still have a good life, I intend to for me, not because it is the 'right' thing to do generally.

Thrugelmir

ally18 wrote: »

I have today made my first official op to both of my mortgage balances. At just over £18 for one and £7 for the other, it may seem like a pathetic amount to pay but for me, it is the start of peace of mind.

Not in the least should you consider repayments however small as pathetic . The self satisfaction gained will ultimately last far longer than any 30 second thrill from an impulsive spend. My grandmother from an early age constantly reminded me that "from acorns do oak trees grow".

Lois_E

ally18 wrote: »

I have today made my first official op to both of my mortgage balances. At just over £18 for one and £7 for the other, it may seem like a pathetic amount to pay but for me, it is the start of peace of mind.

I joined the mf board because I wanted some support from people who were doing the same thing although I do feel as if I'm right at the bottom of the scale because I don't do surveys etc or am madly selling things on ebay.

I have purely budgeted my finances to try and spend as little as I can so that I do have more money each month to throw at the debt I owe. This is purely for selfish reasons because I am worried about my future and that of my children, being on my own. I still intend to try and have a holiday and I make sure my children have treats etc so they don't lose out. I have spent the last 5 months paying off as much as I can to get a car loan out of the way because that was costing me at a higher rate of interest. That has now gone. I have saved an emergency fund though it is not enough but it is there, just in case.

My mortgage is supposed to be finished in 2036 and as I am 44 now, this thought scares the hell out of me so my reasons for overpaying are purely personal. If I can afford to pay more and still have a good life, I intend to for me, not because it is the 'right' thing to do generally.

I don't do surveys or madly sell things on ebay either, ally. Different strategies suit different people's lifestyles, even within this bunch of people who are trying to OP. If you're really at the bottom of the scale then I'm there with you, but I don't think we are. I don't think there is a scale. Everyone on here is making choices of what efforts and sacrifices are worth making to reduce the mortgage, and what efforts and sacrifices are not worth it. We don't all have to come to the same answers.

ETA And Thrugelmir is right that small OPs aren't pathetic. They add up over time, especially with compound interest.