Is it REALLY worth it?

rigsby1967

My mortgage is £46000 with 22 years left, 2 years of that is 6.24% fixed rate.

Would you say it is really worth a TINY overpayment per month and i mean tiny......all i could maybe manage was £10 over payment P.M

Thanks
rigs

SeriouslySeekingtoSave

Yes definately. Even only £10 a month is £10 you aren't paying any interest on. And you'll probably find that you'll be able to throw a bit more money at it over the course of the month. If you have internet banking your can throw even the most tiny sums at it and it become quite adictive.

originalmiscellany

Every little bit helps - £10 here, $5 there, some Greek Drachma there, and gradually you will eat away at your mortgage.

Let's say you manage £10 * 12 * 2 = 240 quid off the mortgage over 2 years, which will mean you save a load of interest long term, and as SSTS said, it's addictive; every time you save some money stick it in your mortgage and watch it shrink slowly

linz

If you enter your remaining mortgage amount & interest rate into this mortgage overpayment calculator you'll see how much a difference £10 a month will make

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

adwat

A £10 overpayment would save you £2776 over the remaining term of your mortgage.

rigsby1967

Thanks for the replies.

Blimey that calculator shows that at just £10 PM o/p i would take a year off my mortgage :T.

I have started putting some money into a sealed pot for the mortgage, so far i have my christmas money in thier and the money my son gave me to buy my netbook off me and i will also put my b/day money in the tin along with some £1 coins along the way.

Unfortunately there is no way of checking my mortgage online as when i enquired few years ago they didin't do that service:(.

Also when i put a lump some on the mortgage they have started charging so i will do it just once a year for a £10 fee rather than a few times per year.

Thanks
rigs

SeriouslySeekingtoSave

rigsby1967 wrote: »

Thanks for the replies.

Blimey that calculator shows that at just £10 PM o/p i would take a year off my mortgage :T.

I have started putting some money into a sealed pot for the mortgage, so far i have my christmas money in thier and the money my son gave me to buy my netbook off me and i will also put my b/day money in the tin along with some £1 coins along the way.

Unfortunately there is no way of checking my mortgage online as when i enquired few years ago they didin't do that service:(.

Also when i put a lump some on the mortgage they have started charging so i will do it just once a year for a £10 fee rather than a few times per year.

Thanks
rigs

Yup amazing isnt' it. But it kinda sucks that you can't check online and it REALLY sucks that you have to pay to make OP's! What a blooming con!

rigsby1967

SeriouslySeekingtoSave wrote: »

Yup amazing isnt' it. But it kinda sucks that you can't check online and it REALLY sucks that you have to pay to make OP's! What a blooming con!

The fee's for the overpayment is a fairly new thing (bout 3 years) but if you do a direct debit overpayment it doesnt cost anything grr.

Thanks
rigs

rigsby1967

rigsby1967 wrote: »

The fee's for the overpayment is a fairly new thing (bout 3 years) but if you do a direct debit overpayment it doesnt cost anything grr.

Thanks
rigs

Woo hoo, I just phoned my mortgage company asking about the fees for overpayments and she said they were scrapped last year in about May .......so i can go in and pay, pay, pay without any fees.
Wished i'd found this out sooner but last year was a no hoper for me due to a loss of a family member .

Now all i need is a tin opener to raid the sealed tin that has approx £100 in so far :A.

Thanks
rigs