After reading these amazing threads i two want to be mortgage Free!!

alwaystryyourbest

just read your diary,, :)well done keep it up..

alwaystryyourbest

Jenny2010 wrote: »

Well I'm undecided if to make an overpayment this month or not because im due a redress and am still not paying interest on the unsecured part of the loan. I might wait till the redress has been added then make a lump sum overpayment, I've got till Friday to decide ??

How much spare have you got to overpay ??.. i proberly would overpay it,, that way you won't spend it..

Jenny2010

alwaystryyourbest wrote: »

How much spare have you got to overpay ??.. i proberly would overpay it,, that way you won't spend it..

I overpay by £200 a month at the moment, I know i don't want to get used to having any spare cash so will no doubt just pay it x

Harry_Boyle

Jenny2010 wrote: »

Hello everybody just paid another £30 off feeling pleased with myself. Can any one help me out with a question. I have around £22000 on my mortgage loan as unsecured would I be best paying this off first? I have never been asked by NR how i want my overpayments being made - so assume they are just taking these amounts off my secured mortgage?

Also just been reading through my posts - I haven't neglected my savings we have £4000 in our joint savings account - I still try to add to this each month. You never know whats around the corner XX

Hi Jenny, I was thinking about asking about this when I saw your OP. I was reading through the thread when I saw your post above and thought I'd ask the question now - so apologies if it's already been discussed further down the thread! ****

I'm assuming you are in the NR 'together' mortgage? From what I've read from other posts on MSE in the past, I believe that you get a preferential rate on the unsecured loan as long as you keep the mortgage with NR - a good way of locking in their borrowers.

If you are on this deal, then if I were you I would make my overpayments onto the unsecured loan rather than the mortgage.

The primary goal of mortgage overpaying is to reduce your outgoings. With this in mind, most people's initial overpaying goals should be the following:

1. Eliminate any negative equity (not applicable in your case).
2. Improve your LTV to get a cheaper mortgage deal.
3. Use the saving from the better mortgage deal to make larger OPs onto mortgage to get to the next LTV threshold.
4. Continue until mortgage is paid off! (Hurrah!)

In your case, you might not be able to move to a cheaper mortgage provider because your unsecured loan rate might go up so much that it's not a cheaper deal. This is why I'd make your loan the top priority.

Whatever you decide, you need to get in touch with NR to make sure your overpayments are going to the right place. A final thing to consider is that many providers have a minimum OP amount (I believe mine is £500). If you make overpayments less than this the lender just puts them into an interest free account until they add up to the minimum. If you are saving £30 here and there, you are better off putting them into a savings account until ou have saved the minimum.

Oh, and while I remember - make sure your lender knows you want the overpayments to reduce your mortgage TERM not your mortgage PAYMENTS, otherwise your mortgage will be cheaper each month but will still run the full (35?) years.

Good luck.


EDIT: *** LOL, it had been discussed! Congrats on reducing your USL.

Jenny2010

Hi, I always overpay to the unsecured loan only :-) This is the part i want too be clear of. I'm nearly in a position to combined my mortgage so thankfully won't have an unsecured loan element in the next few years. Nram are very good for overpayments as long as you don't make more then 10% in one year you don't get penalized. The overpayments I pay come straight of the balance aswell. They are always trying to lower my monthly mortgage payment but I don't let them so in effect I make to overpayments a month. But thanks for your Info and response. When I first started overpaying I wasn't as clear on it I was only a young one then x

Jenny2010

Well decided another £200 will be coming off my mortgage tomorrow :-)

Jenny2010

So HAPPY. They are reducing my unsecured loan by £3457.62. What a fab overpayment x

marisco_2

Do keep going, it is so worth it in the end to be mortgage free. I bought my first property when I was 25. I am now nearly 40, mortgage free, working part time and term time only. Having extra cash per month is only one benefit. Being mortgage free gives you freedom and choices.

Jenny2010

Thank you I'm 28 next month and Im proud of what I've achieved so far. I will get to a really good place with my current mortgage then i'll go and buy a bigger more expensive house, thats the plan. But when I do I will be doing the same all over again and reducing it as much as I can :-)

Jenny2010

Well my new full time job is going well :-) will be making another over payment of £200 tomorrow which will bring my outstanding balance down to £84800 :-)