My First Step into the scary world of MFW

clearing_out_my_pockets

Thanks - I was going to do that once the monthly overpayment goes on the 28th. At the moment I've overpaid by £8.76 this month, which looks a bit pants!

OH laughed at my small overpayments but I showed him the spreadsheet that shows that by overpaying by an extra £1 a month on top of what we're already doing would cut the term down an extra month.

delmar39

clearing_out_my_pockets wrote: »

Thanks - I was going to do that once the monthly overpayment goes on the 28th. At the moment I've overpaid by £8.76 this month, which looks a bit pants!

OH laughed at my small overpayments but I showed him the spreadsheet that shows that by overpaying by an extra £1 a month on top of what we're already doing would cut the term down an extra month.

It's not pants! Like you say a small amount goes a long way over the long term. We'll be pleased we've done it when it comes to paying it off early.

beebuzz168

Hi Clearing

Can I ask what calculator you use to work out what your daily interest is?

I don't yet have a mortgage but we are in the process of buying house, and I fear I will be in much the same position as you... my DH doesn't have much of a clue about mortgages or any interest in paying it off. Who else could have ended up owing more after owning a house for 8 years than the original price of the house!

Good luck with your mission, I will be watching you for tips!

Bx

clearing_out_my_pockets

I don't have a calculator that works it out, unfortunately. I'm sure there is a way of doing it, but I'm not that sophisticated!

All I do is log in to my internet banking and it shows what interest has been charged to date. I then compare it to what it was the previous day. It's quite disheartening to realise that only 27% of my monthly payment goes against the capital!!!

tootallulah

To calculate daily interest: multiply the outstanding mortgage amount by the mortgage interest rate and divide by 365.

pammyj74

Thought I'd pop in and say hi COMP, well done on OPing straight away, if only the majority of us knew to do that as soon as we had our mortgages! I'd be almost finished by now if I had done that, makes me cry haha

It is shocking when you look at the daily interest and realise how much you are actually paying off the capital is peanuts!

congrats on the wedding, that in itself can be stressful enough.

clearing_out_my_pockets

tootallulah wrote: »

To calculate daily interest: multiply the outstanding mortgage amount by the mortgage interest rate and divide by 365.

That doesn't quite work. If you do that with my mortgage balance, it comes out at £19.92 per day, when it's actually only £19.77.

Anyway... OH & I will be going through our combined DVD collection at the weekend in readyness for some ebaying / amazon selling. We may split the proceeds between overpayments and the wedding, as the proposed VAT rise will obviously add money to the cost of the wedding Fingers crossed we'll be fine anyway, as I budgeted a 5% contingency for certain items coming in over budget.

It's funny - just over six months ago I couldn't wait to get the mortgage. Now I can't wait to be mortgage free!

clearing_out_my_pockets

Ok. So this month's OP has been £85.99. I've got about £40 that will be coming from Topcashback and another £20 from an amazon sale to come through at some point. Just need to decide whether to put that towards a mortgage overpayment or to emergency funds. The mortgage is flexible and allows us to have our overpayments back, and the mortgage interest rate is higher than I'm currently getting in savings, but I'd like to have a bit of a buffer there.

We also need to have a serious think about what we need to do to the house. We moved in at the new year and haven't done anything. Now we'd like to put our own stamp on the place and spruce it up a little. It should just be a lick of paint here and there; now that we've lived there for a while, I'm starting to notice the scuff marks from the previous owner's furniture. The rose tinted glasses are definitely off! This weekend I'll be painting the built in wardrobes that the previous owners put in - they're currently still MDF coloured!

clearing_out_my_pockets

Daily interest has gone down again. We're now at £19.74 per day. Overpayment of £20 made from the amazon sale mentioned above. Topcashback is being very slow, but then again one of the payments is for RAC cover and they're notoriously slow at paying out.

Total for the month so far - £20.90. Minimum for the month after standing order comes out on 28th - £96.28.

clearing_out_my_pockets

Wow - over a month since I posted!

Last month my / our overpayment was £129.17 which means that this year we should be able to do £1,100. I'm still waiting on loads of topcashback money...

I've increased the monthly standing order from £75.38 to £85.38 which rounds the monthly payment up to a nice round figure.

Daily interest is now £19.69 - baby steps and all that!