We are currently reaping the rewards of a decent tracker, but we're not overpaying. No point when our mortgage interest rate is so low.
But that doesn't mean I'm spending it all. Oh no...I'm stashing it. I can easily make more interest on it than I'd be saving if it went towards the mortgage, so that's what I'm doing. When the base rate goes up and my tracker rate overtakes what I can earn in savings, that's when I'll drop a load on my mortgage :-)
That what we have been doing with our overpayments since we re-mortgaged.
We currently have several regular savings accounts and a fixed rate ISA which contains our OP money.
We are now overpaying by £278.72 pm due to our mortgage being a tracker that is now set at 0.62 above BofE base rate for the remainder of our mortgage term. We are however paying at the top whack now (6.37%) based on the figures from our key facts document stated what our payments would rise to at the end of our three year discounted period, assuming rates hadn't risen. We all know they have dropped so decided to leave our payments at the top whack from the day of the first rate drop. It works for me, watching the balance dropping all the time...
ORIGINAL MORTGAGE AMOUNT £106,454.00 (Started Sept 2007)
NOV 2021 O/S AMOUNT £1,694.41 OUR DEBT REDUCED BY £104,759.59 by std regular, over-payments & off-setting.
BofE +0.19% Tracker Repayment Offset Mortgage Discounted Sept 07-10 then increased to BofE +0.62% until 2027
On average since starting OPing 15 months ago, about £450pm. When the baby is born next year we will probably overpay about 20% of that, but we are still fairly young at 23 and I don't mind not being able to overpay as much as we are now, because I'm sure the toddler will more than make up for it!
To anyone who feels 'guilty' about 'only' overpaying a certain amount, you do realise that the majority of people (from my own findings with mates etc) don't overpay a penny?!
I earn under £1000 pm so I am limited to how much I can overpay... I am just debating whether to cancel my SO of £25 to a savings account and send it directly to my mortgage instead... Or maybe wait til the end of the year then put £300 from the savings into my mortgage so I get the interest from it as well, although it wont be that much really. I also put any random income in there so I put my tax rebate (approx £500) towards it this spring as well.
I did overpay more until recently but I've had my hours reduced at work so a bit limited now, I could get a second job but I think my son is really appreciating me picking him up from school instead of having to go to childcare so even though I would love to be able to overpay more I might leave it for a while to see how it goes.
Save 12k in 2019 #8 £2432.65/£2,500
MFiT T5 #22 Save £20k over 3 years £5495.08
Walk 1500 miles in 2019 - 645.92/1500
I earn £47K as a (senior) software engineer (I pay for half of the above and my husband pays the other half).
That's not an unusual salary in IT for a graduate with 20 years experience.
I think I am lucky that the area in which I am skilled is relatively high paying and has been able to provide full time continous employment for me. (I've been made redundant twice but was not out of work for very long).
It's not as good as it used to be for new entrants because many jobs are now outsourced to India etc.
A bit nosy and quite abrupt shortchanged.
Thanks, but I don't mind sharing if the info helps someone explore career options.
What job gives you so much money?
It's not the job it's the career.
It's my experience that I'm paid for.
So sorry there aren't any shortcuts, you have to work your way up in many industries.
I overpay by the max at the end of our mortgage year (10% of original value). If I can afford anything else other wise, I get them to adjust the term of the mortgage and increase my monthly amount to suit (and therefore avoiding any penalty charge)
Replies
Would like to be mortgage free in 2 years.
How much do you flippin earn?
What job gives you so much money?
A bit nosy and quite abrupt shortchanged. Not really for anyone to judge is it, the site is about moneysaving, however much or little you earn.
Anyone who overpays IMO is getting one over on the banks & building societies so keep going :T(KBO as Churchill used to say).
That what we have been doing with our overpayments since we re-mortgaged.
We currently have several regular savings accounts and a fixed rate ISA which contains our OP money.
NOV 2021 O/S AMOUNT £1,694.41 OUR DEBT REDUCED BY £104,759.59 by std regular, over-payments & off-setting.
BofE +0.19% Tracker Repayment Offset Mortgage Discounted Sept 07-10 then increased to BofE +0.62% until 2027
To anyone who feels 'guilty' about 'only' overpaying a certain amount, you do realise that the majority of people (from my own findings with mates etc) don't overpay a penny?!
I did overpay more until recently but I've had my hours reduced at work so a bit limited now, I could get a second job but I think my son is really appreciating me picking him up from school instead of having to go to childcare so even though I would love to be able to overpay more I might leave it for a while to see how it goes.
Save 12k in 2019 #8 £2432.65/£2,500
MFiT T5 #22 Save £20k over 3 years £5495.08
Walk 1500 miles in 2019 - 645.92/1500
How do you work out the % of the OP you are making on your mortgage?
Original amount was £15k
OP is £120
over 25 years.
Cheers
That's not an unusual salary in IT for a graduate with 20 years experience.
I think I am lucky that the area in which I am skilled is relatively high paying and has been able to provide full time continous employment for me. (I've been made redundant twice but was not out of work for very long).
It's not as good as it used to be for new entrants because many jobs are now outsourced to India etc.
Thanks, but I don't mind sharing if the info helps someone explore career options.
It's not the job it's the career.
It's my experience that I'm paid for.
So sorry there aren't any shortcuts, you have to work your way up in many industries.