10% overpayment for 2006 completed

karom

Hi

Finally completed end of August the 10% overpayment limit for the mortgage this year :beer: (8.2K)

We are now at 12 years 10 month (originally took a 25 year mortgage; this was 3 years and 6 months ago - Total years gained by overpaying: 9 years ).

Overpayment this year resulted in a gain of 3 years!!!

Still a long way to go and just owning 50% of our property but spirits are up :j

Challenge for next year - 10% overpayment by 1st of June (should equate to 7.1 K).

How about you guys??

tomstickland

Well done! I've not even started overpaying my mortgage yet.
I'm saving enough to do so though; just want to build my cash savings back up first though. First move will be to pay off the £500 admin fee that they've agreed to backdate since they were charging it at SVR, not the discount rate.

Thefunkygibbons

I assume that you are limited to 10% each year

Is that permanent part of your deal

Is it worth moving to get a more flexible deal?

save-a-lot

Have not started to overpay significantly yet, on our deal it is only 5% of the remaining balance that is allowed as overpayment each year. But on the flip side our mortgage rate is only 4.67% fixed for 10 years, so carry on investing money away into ISA's.

el_pedro

Will make the 10% limit (11.5k) in Jan, then have to wait until July before I can over pay again. I am thinking of either re-mortgaging or putting the money from Jan to July in a high interest account. On average I am over paying £2k per month. Any suggestion on re-mortgaging or putting money into interest account until July?

karom

Thefunkygibbons wrote:

I assume that you are limited to 10% each year
Is that permanent part of your deal
Is it worth moving to get a more flexible deal?

We have a 10% limit up to mid-next year.
The fee for closing the mortgage is £445 and it is currently a tracker (bank base rate + 0.45%). I saw recently woolwhich advertising tracker with bank base rate + 0.19%. Quite tempting but the high fee when closing the mortgage is really coming into play when calculating if the switch is worth it or not.

Cheers

greytroot

I took £76500 over 16 years, april 2006, at £533 per month, paying £850 per month and think mortgage will be clear by 2015. Unfortunately am being made redundant april 07, so will have to reduce the payments and maybe increase the term too.

the_prophet

karom wrote:

We have a 10% limit up to mid-next year.
The fee for closing the mortgage is £445 and it is currently a tracker (bank base rate + 0.45%). I saw recently woolwhich advertising tracker with bank base rate + 0.19%. Quite tempting but the high fee when closing the mortgage is really coming into play when calculating if the switch is worth it or not.

Cheers

We are in the process of switching our mortgage to this as we are currently with abby flexiable so only have to pay the deeds release fee of £225. we are currently on 0.54% above base rate so to pay 0.19 works out at a saving of over £5000 on a 22 year mortgage for us (£18 per month) also the beauty of this mortgage is there is no tie in, you can over pay, switch whenever you like without a charge, it looks like you can also 'drop down' money as well. We were recommended this by london and county (martin sings their praises) and apart from the absolute fag of doing the paper work I figure I would rather have £18 in my pocket than theirs:money:

clarew

just wanted to say well done to everyone who has managed the 10% overpayment. :T Well done to you all.

I am still doing little bits here and then, and dream of the day i could manage 10%, but to quote mr tesco, every little helps!

ScarySue_2

I had a life asssurance policy mature in August, so put a 10% overpayment into the mortgage. I'm tied to the current deal 'til July next year, so can't overpay by more than 10% per year without penalties. However, I'll look to more to a more flexible mortgage so I'm not restricted to 10%.

tomstickland

Well, I've made a start by paying my backdated arrangement fees for £499. (They sneekily charged these at SVR over the mortgage term rather than the discount rate).