How often do you overpay?

HumbleBumble_3

Could you tell me how often you overpay on your mortgages?

1. Do you overpay the same amount each month?

2. Pay different amounts each month depending on how much you have saved?

3. Or save it up to do a lump sum?

I see that some of you have made overpayments and others have a virtual pot?

I really wanted to pay the same each month to get the balance down but I don't know if I will be over stretching myself. I currently overpay by £20 each month (£783.12) I would like to pay £900 but that is a bit too much i think. So i might round it up to £800 and then see how much I can save after that and then do a lump sum.

What do you think?

wantabetterlife

Hi humble bumble, when we went onto a new deal our payments were due to fall.. i kept the payments the same as this was what we had been paying for the last two years and had been used to it......i managed to knock about 4 years off our mortgage doing this.

I also pay over small amounts online to the mortgage as and when such as quidco or ebay money. ALthough it depends on your mortgage if you can do this or not and obviously you need to be registered for online banking. My mortgage is with halifax and i can make any size of an overpayment as long as i dont go over 10% a year.
You could also overpay over the phone...i find the internet the best method because as soon as paypal pay the money in i transfer it over to the mortgage straight away...i think if i had to save it up to say £500 first or wait until the end of the year i wouldnt do it. Hope that helps.
WABL

Peelerfart

I overpay by paying my tracker mortgage as if it's a fixed rate and paying a set amount each month.
The lower the IR's the more I overpay.

I've paid off quite a lot these last two years

Caroline73_2

I tend to overpay at the start of the month once I have worked out the monthly spends. If any money comes up mid month I save it until I get to over £100. I pay different amounts each month but my wages vary each month because of overtime/extra hours etc.

HumbleBumble_3

Thanks that helps.

I think that i need to check with my bank (C&G) if i can vary the overpayments. I will definitely round up to £800 and then if i can manage more in a few months time up it again.

I am a bit worried that with the best will in the world that once I have a lump sum i might spend it on something else!

Lilium

We can only overpay a minimum £250 lump sum each time. So when DH get's paid we transfer a set amount from his salary into a savings account. We keep this the same each month. Then some/all of my pay (depends on what else has come up) goes into this account too and we have enough to make an overpayment.

So we're currently overpaying about once a month but it's not the same amount each month.

mrred66

i used to have an offset mortgage (the one account) and i automatically overpaid everytime i didnt spend any money!.

i dont have a mortgage now.

katsu

I have a virtual pot as my mortgage needs £500 lumps or else I would do little OPs.

lincoln-potter

Previously I used to pay come bonus time or when I had saved up a lump sum, now since joining MFW I plan on making monthly payments with whatever is left over.

bownyboy

I set up a standing order for the first time in January, comes out day after payday everymonth.

I decided to halt my pension payments and max overpay my mortgage to pay off hopefully within 8 years. After that I'll then put loads into pension & ISAs.

mintedmatty

Every payday on internet banking when the DD goes out for £228 I top that up to £400 by transfer. The good thing with HSBC internet banking and mortgage is that it deducts on the mortgage straight away and interest is calculated daily so saving me on interest from the day I pay!

I also over pay little bits here and there during the month i.e when i pay £53.44 in at the bank ( I deposit cash on a weekly basis including coins) I will pay off either £3.44 or £13.44 depending how many spends i need? A little goes a long way!