Are we in a small minority?

goggle

most people just want as much money in their pocket/available to spend as possible.
I can't believe a girl at work who brags about her low mortgage payment - when I asked her if she was putting what she previously used to pay on her mortgage into savings/overpaying she looked at me as if I had 2 heads & said "no, I spend it!" - the thought of putting say an extra £100/month away so she's used to living on less & ready for interest rate rises really was beyond her comprehension!
But then there is also the guy who pays almost 50% of his take home pay every month on an interest only mortgage 'cos he wanted the big house - he is waking up sweating 3 times a week with bad dreams about redundancy & interest rate rises ...

TurnaroundSue

I was aware about mortgage o/ps and when I took out this mortgage was told we could repay 5% per annum. At the time our finances couldn't stretch to that much anyway so I wasn't really bothered, but now am in a position to overpay am gutted as am only covering the interest element on overpayments. I am however paying £500 into a savings account which in a couple of years will pay off mortgage in full and pay the small penalty.

I told one of my friends that we overpay and have only 2 years left (once lump sum is paid) and her response was "God aren't you lucky"!!!!!!! It has nothing to do with luck, but putting the right head on and using our money wisely, going without certain things and sometimes sheer hard work, whilst she has the lastest fashion, hairdos etc

jess444_2

I was never really aware of overpayments until I found MSE. Saying that if I had of been I still don't think I would have made overpayments as we just couldn't afford it at the beginning. It is for this reason that I also did some pretty stupid things, which I am now kicking myself for, eg, taking out my pension when I went part time when the children were born, taking mortgage payment holidays to pay for Christmas. All I can say is 'we live and learn' and I hope I can now give my children the financial guidence I was sadly lacking when I was younger. However, I am sure that they will do what most of us do when we are young - ignore good advice and do things our own way.

Vixstar

It's only since finding this site that I have become fully aware of overpayments, noticed something on my first mortgage deal but didn't really pay much attention. Now I'm trying to buy my next home I'm actively searching for something that will let me overpay.
Thought I was in the minority with this but was at a work dinner the other night and the people I was sitting next to were telling me I should overpay my mortgage as much as possible (whilst talking me into a convertible too - God knows what they think I earn!)

CrazySaving

Does anyone remember the programme that was on called 'Pay your mortgage off in 2 years?' this is what got us into the idea of paying the mortgage off early and therefore started to do overpayments.

MacsReturns

When I got my current mortgage the very flexible provisions for over-payment and payment-holidays were made very clear. At first I didn't have much spare - new job, recent move etc - but eventually I found I had a bit of spare cash building up so I dropped a lump sum into it but I couldn't believe the paperwork involved.... then the rates started coming down and it twigged a regular overpayment was less hassle than doing lump sums. Now I'm making the same monthly payments, which works out about £50 a month OP. I don't notice the difference (except when I work out the total interest over the life of the mortgage ) My OP is now more than the monthly interest so I'm really hacking away at the principal now.

I really can't believe people are just cutting their payments to match the interest rates, then wasting the money on consumer spending... crazy. AND they don't realize they're going to end up paying more in the long run.

I'd like to give MSE the kudos, but I worked it out myself before I found this site - but it did vindicate my choice though :beer:

d-seven

pawlala wrote: »

Are we in a very small majority in here? I doubt we could ever get a definitive figure but your stories about how you first knew about overpaying may help?

I think we are to be honest:cool:

CrazySaving wrote: »

Does anyone remember the programme that was on called 'Pay your mortgage off in 2 years?' this is what got us into the idea of paying the mortgage off early and therefore started to do overpayments.

Yes, i remember that programme.. I always wanted to pay my mortgage off early and that programme sort of got me thinking more about it. I remortgaged a couple of times before that in order to get a better interest rate and pay more off per month.
I got talking to a collegue a few years ago and he had a nationwide mortgage with the option of overpaying by upto £500 a month so I moved to that and have since paid off the mortgage in jan (slap bang in the middle of a credit crunch!). My parents paid theirs off many years ago.

I always have lived well below my means and only ever bought things if a) I needed them, and b) I could afford them. Whereas a lot of people seem to want a new car every few years and have new and better tellies etc, I have just made do with an older car and telly etc. Everyones attitudes towards money are different.

Lexxi

This site definately made me aware of being able to overpay. At the time I was living alone and psychologically couldn't do without that £50 a month until I realised that by next payday I couldn't tell you were most of my money had gone. I have been regularly overpaying between £100-£300 and hope to keep it up to get the mortgage paid off early.
My parents know I do it but won't do it themselves, yet if they came into a lump sum it'd go to their mortgage, the way I see it it's a great big sum paid in a steady period of time which have the same outcome!
OH knows I do it and is happy for me to so long as he can still have what he wants

Queen-Bee_2

Although I knew that by having a mortgage you ended up paying more, it wasn't until relatively recently and I worked it through on Locoblade's spreadsheet that I worked out how much more. Then I calculated out that by overpaying, I could save up to £51k interest - and that was on the basis of only having borrowed £100k in the first place (seemed a lot at the time, in fact it still does, but new mortgages these days are hair raising)

Previously, I'd paid off the mortgage on my first flat cos I'd just wanted it out the way. I have no idea how much interested I saved by doing that, but as rates were very high indeed at one point, probably quite a lot!

Generally however, this site has been a revelation. My attitude towards money has changed beyond recognition, and even when I'm back in the saddle work wise, my MSE habits are likely stick with me forever.
QB

ernie_3

:jI dont think we are in a minority, i think its down to being focused and seeing the light {sorry for the fire and brimstone stuff}. People have told me at work that i am "mad" or "sad". I just put it down to their embarrasment, misunderstanding and not being disiplined.As many members say on this forum its all down to encouragement. Just think if Martin was the "chancellor"..that would be interesting;);)