Are we in a small minority?

Jesthar

I always knew about overpaying as my parents did it - they had a mortgage at the time when interest rates went as high as 15% (:eek:), and when they came down they kept their payments at the same level, which resulted in the mortgage being paid off almost ten years early

So when I finally had a chance to get a place of my own a few years ago, the first thing I said to my (very, very good) financial advisor was "I want a mortgage I can overpay on" (to which he said "Fantastic! Best thing to do!"). As lenders were already getting cagey about high multiplier mortgages, I could afford to overpay a decent amount more or less right from the start of the mortgage, working on the principles that the more I knocked off at the start the more I would save overall on interest, that no savings account would give me an interest rate approaching the (fixed) mortgage rate, and I wouldn't miss the money each month if I never had it to splash around in the first place.

So far I'm on track to pay the mortgage off over eight years early, and I hope to improve that as and when I can afford to

~Jes

teameffort

lil_lisa wrote: »

If these things were publicised more I think the mortgage industry would be very different today. If someone said to you that paying an extra £50 a month could save you £16000 you'd probably be more inclined to find that £50!

i agree, altough i have yet to take out a mortgage (hopefully by the end of the year savings permitting) I wanted to research all of the available products on the market and have spent lots and lots of time playing around with various mortgage calculators.

As a result we have decided to go for a 15yr repayment mortgage and overpay by 20% right from the very first month. this should mean we own the house out right in 12yrs and before we are 40.

It makes me feel so positive about buying a property and yet a little sad that others may not benefit from such insight thanks to sites like these.

teameffort

I guess like most things in life you get out what you put in.

When making the biggest perchase of your life it is ultimatly your responsibility to use all of the resources at your disposal and educate yourself about every aspect including the true overall costs both long and short term.

the more research you do-the more you can make an informed choice.

i fully support financial education in schools because it's important to know the correct questions to ask.

pawlala

^ Post of the day!

pawlala

bump in case there are some new MFWs wanting to contribute!

pawlala

Almost a third overpaying mortgage

Nearly a third of homeowners have taken advantage of low interest rates to overpay their mortgage during the past year, research has shown.

Of those questioned, 29% said they had paid more than they were required to during the past 12 months, 37% of whom said they had overpaid by a total of £2,500 or more, according to money guidance website Moneybasics

http://www.thisislondon.co.uk/standard/article-23929302-almost-a-third-overpaying-mortgage.do

tesuhoha

I'm aged 61 and still have a mortgage of £31,300 to pay off.:eek: However, since I was made redundant with pension lump sum plus redundancy money plus current savings we have enough money in the bank to pay the mortgage off completely. I am not doing this for a number of reasons, there would be a redemption charge of around £1,000 plus overpayments are £500 per month maximum without any charge as we have a low rate tracker. I am therefore overpaying slowly to clear the mortgage in about 17 months. We have a mortgage plus a further advance. Therefore having two accounts we can overpay by £1,000 per month which is what I am doing plus getting a bit of interest on the savings.

In the past I would love to have overpaid the mortgage but we have always struggled with money and have run a very tight ship. We went through a long period of debt so that had to be repaid without even thinking about the mortgage. I now wish I had done things differently in the first place but hindsight is a wonderful thing.

adwat

pawlala wrote: »

Almost a third overpaying mortgage

Nearly a third of homeowners have taken advantage of low interest rates to overpay their mortgage during the past year, research has shown.

Of those questioned, 29% said they had paid more than they were required to during the past 12 months, 37% of whom said they had overpaid by a total of £2,500 or more, according to money guidance website Moneybasics

http://www.thisislondon.co.uk/standard/article-23929302-almost-a-third-overpaying-mortgage.do

Which means 66% haven't overpaid their mortgage.

This makes us very much the minority being overpayers - indeed most of us on here are overpaying significantly in terms of the rest of our budget so we're in a minority of a minority!

mummyofonechild

adwat wrote: »

Which means 66% haven't overpaid their mortgage.

This makes us very much the minority being overpayers - indeed most of us on here are overpaying significantly in terms of the rest of our budget so we're in a minority of a minority!

Its a minority I am happy to be in

sKiTz-0

It's a minotiry I'm happy to join!

Hi all, just signed for my first mortgage on Friday. Doing it all on my own, been saving hard for the last 4 years. Have just bought my first house for 82k, put down 26k deposit so I have borrowed 56k on a 20 year repayment mortgage @ 3.44% fixed for 2 years. So excited to get my keys in the next couple of weeks.

Am aiming to have the balance down to the low 40s in 2 years time when the fix comes to an end.

Good luck with the overpayments people.

sKiTz