Really want to stick at overpaying mortgage!

ryan37

hey there,

i have over the years tried to overpay the mortgage - can never manage very much so is not a drastic difference i think?!

the mortgage today stands at £48,260 - 17 years left - the monthly payment should be 389 but i pay per week an amount of £100 instead - making an overpayment of 10.00 per week and if a 5 week month then a extra payment of 100 goes out too - i thought that had given up paying extra but actually writing this i realise that i am still doing it in my weekly payment!

i really need ways of being able to save little amounts of money to overpay - as we dont have a lot spare at the moment - but still love the idea of shortening the whole term left !

any ideas?? i love reading this forum it fills me with so much enthusiasm to overpay!!

originalmiscellany

Complete an SOA to share your budget and people can comment as to how you can save on things, e.g. phone, gas/elec, water.
Just a few savings at a £10 a month can save you hundreds over a year.
Great!

cha97michelle

I do it on small payments. If i save any money on any purchase, or get any cashback, or get paid for a survey, it all goes to the mortgage. Any cash that is not part of my budget is fair game.

Eg. last week the window cleaner didn't come when i expected him, so i overpaid £1.25 (half of the fortnightly cost.)

You just have to be really consistent and it does start to have an impact.

whatyadoinsucka

i find a good way to overpay is round down the mortgage each month, although you say you pay weekly.

I have a mortgage with my bank so when i log onto internet banking i can see the mortgage so i always make additional overpayments to round it down to the nearest £100 or £50 or £25 or even £_,999 , the interest only comes out once a month, so 2nd of the month those extra pounds and pennies get taken off. and i can see a nice round number.

for example 2nd of the month i see £110,092.11
i'd overpay £97.11
so it looks far nice figure at £109,995

its surprising how much you can make a difference, but i am an accountant geek and so quite dull :0)

RosieTiger

Having an overpayment ticking away in the background as you have done is the one that works for me. That way it's in place, rather than waiting to see how much you have left at month end which is always lower!!!!!
Lots of money saving tips around on these forums, take a good look at them to see if you can generate any more savings to generate additional over payments and I am sure you will get there.