Wot?! 25 years until mortgage free? -- Our dream to reduce our term --

LA83

Hello,

My mortgage is alliance-leicester which is now santander. I got my statement through today (131984 left) and like you its shocking to see that the 11,000 i paid last year has only knocked 3500ish off my mortgage.

Im on 5.09% fixed for another year off the original 5 years. 21 years left all together

I over payed 300 pounds today previously i've only managed about 5-600 over the last 4 years Cost of living has been taking its toll.

Rose_Crow

christabell wrote: »

I am with Santander as well, and was always told to pay any extra for my mortgage it was in £500.00 amounts, so now it can be done in £50 amounts? Is this correct?

Yep, the chap on the phone said the £500 minimum payment was no longer in force, so you can pay off as little as you like :j

n90bar wrote: »

I overpay my Santander mortgage by £200 per month. I just rung them up, quoted the account number and told them to increase the direct debit by £200 per month. Been doing it for 7/8 months now without any problems. Just checked through my mortgage statement that came recently and it all appears in order!

It's odd, when I rang them they said they couldn't just increase the DD, it had to be done manually. This works well for us anyway, as we may pay off different amounts each month depending on overtime etc.

originalmiscellany wrote: »

It's always a shock the first few years of mortgage payment where you feel like you're making No inroads into paying off the mortgage But you are, and if you're overpaying, £100 a month will make a big difference long term - so well done

Have you considered a SOA
http://www.makesenseofcards.co.uk/soacalc.html

to ensure that you're saving and getting best value in all areas of your life?

Luckily we've only have the mortgage for 6 months, but yep, my initial thought was, is that it? (Re how much we'd paid off). Glad I worked it out now rather than 10 years down the line.

Regarding an SOA, I've not done one before, but feel that we have our finances organised pretty tightly. I'm a bit anal about getting the best deal on insurance etc. But that said, I will try to sort one out when I have time

Rose_Crow

LA83 wrote: »

Hello,

My mortgage is alliance-leicester which is now santander. I got my statement through today (131984 left) and like you its shocking to see that the 11,000 i paid last year has only knocked 3500ish off my mortgage.

Im on 5.09% fixed for another year off the original 5 years. 21 years left all together

I over payed 300 pounds today previously i've only managed about 5-600 over the last 4 years Cost of living has been taking its toll.

It's definitely a shock to the system realising how little you actually pay off. Even though I signed up to the mortgage, and took plenty of time looking through the T&C's, my brain just didn't pick up on the sheer amount of interest we have to pay! We're on 5.99% fixed for another 2 and a half years, which I think isn't took bad to a couple of FTB's with 10% deposit.

We said after around 3 years we'd look to move up again, as we're pretty keen on getting a bigger house (no space for a dog at the moment!)

katsu

We are with Santander too and they (and the paperwork) told us it had to be £500 chunks. Do let us know that your £50 is credited OK etc. Did you tell them you wanted it off the capital or monthly payments? They got very muddled about our capital (i.e. length of mortgage) repayment last year and sent 3 different letters - yes you can, no you cant and erm, some other waffle :rotfl:

Rose_Crow

Apparently we should receive a letter to confirm the money is credited ok, so I will keep you posted. I asked for it to be taken off the capital (i.e to shorten the term).

sarahevie

I've gone for the shortening of the term option as well.

n90bar

grn.w.nv

Thats very odd that they couldnt just change the direct debit amount. I suspect by reading the posts on here that it depends who you get when you ring.....?

Rose_Crow

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 5

Monthly Income Details
Monthly income after tax................ 1166
Partners monthly income after tax....... 1875
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3041

Monthly Expense Details
Mortgage................................ 893.6
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 156 - going down to £130 ish in July
Electricity............................. 23.5
Gas..................................... 23.5
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0 - included in Sky
Mobile phone............................ 50
TV Licence.............................. 12.12
Satellite/Cable TV...................... 40
Internet Services....................... 0 - included in Sky
Groceries etc. ......................... 160
Clothing................................ 0
Petrol/diesel........................... 450
Road tax................................ 50
Car Insurance........................... 100
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 50
Buildings insurance..................... 9.58
Contents insurance...................... 0 - included with buildings insurance
Life assurance ......................... 23.11
Other insurance......................... 19.53
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 100
Farrier................................. 25
Horses' feed / hay...................... 30
Cats (2) food........................... 20
Horses' Livery.......................... 100
Total monthly expenses.................. 2515.94


Assets
Cash.................................... 2000
House value (Gross)..................... 145000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 157000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 137811...(893.6)....5.99
Total secured & HP debts...... 137811....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Santander (sofa)...............1187......49.47.....0
Bank of Mum (car)..............2000......100.......0
Total unsecured debts..........3187......149.47....-


Monthly Budget Summary
Total monthly income.................... 3,041
Expenses (including HP & secured debts). 2,515.94
Available for debt repayments........... 525.06
Monthly UNsecured debt repayments....... 149.47
Amount left after debt repayments....... 375.59

Personal Balance Sheet Summary
Total assets (things you own)........... 157,000
Total HP & Secured debt................. -137,811
Total Unsecured debt.................... -3,187
Net Assets.............................. 16,002

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

So here it is. Not done one of these before, been as thorough as possible, though we never have £375 left in current accounts at the end of the month, I'm trying to track it down, I think some of it goes to savings accounts, some is cash that gets spent on general bits and bobs. I rarely spend any cash, though because I work from home, I like to have lunch somewhere once a week (£4). My OH probably spends more cash (work lunches etc.) though cash is a nightmare as once its gone its gone, and you can never remember what it was spent on.

I'm sure someone will say something about the cars, but it's our 'thing'. They are all paid for bar my current one - which my mum kindly lent me £2000 to buy after my last one was written off last year. So, I have my car, which I drive everyday, OH has his company car (so insurance, tax, MOT etc. already paid for by company). He also has his 2nd car, which doesn't really come out much bless her as she's getting on a bit now. He also has another car, which takes turns with his 2nd one, but it works out that he only pays tax, insurance etc. on one car (as co. car paid for). I also have another car stashed at my parents house. She's been off the road since August, though hopefully I can get her on a reduced mileage policy so I can have her out in the summer. There's no option of getting rid of any of them, we love them

I await any questions or comments

Rose_Crow

So got a nice shiny new signature, somehow managed to cram all the information I need on it - I like a challenge! I also made a fund-raising style thermometer chart, which you may be able to see we've just started filling in! OH loves it, and standing by ready with the orange highlighter :rotfl:

Anyone who wants one let me know and I'll try to work out how to send you a PDF version.

SmlSave

Welcome to MFW grn I like the chart!