How often do you overpay?

LittleMissAspie

HumbleBumble wrote: »

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 basically do all three.

1. We've rounded our regular repayment up to be a little higher than what we used to pay in rent. So it's not very painful yet we are knocking a good few years off just doing that.

2. I have a spreadsheet tracking the entire life of the mortgage. When we get notified of our interest payment for the coming month, I add it to the spreadsheet and it calculates how much we will owe after our repayment. I then make an extra payment to the mortgage account for the odd bits, ie to round the amount owing down to the nearest £100. I have this money spare at the moment because I overbudgetted for some bills, when it runs out I might have to stop doing this but we will see.

3. As the mortgage is offset we are trying hard to build up our savings and when we are finally interest-free, we will pay off some big lump sums.

tina01904

I pay my regular monthly mortgage payment and then have a savings account for larger amounts to be saved from my wages. I also have another savings account where I put small amounts from cashback, small change etc. When the larger savings reach a respectable whole number I pay a lump sum off my mortgage. I only started the small savings account in January and am planning to keep this going until the end of the year then add to my large savings to pay off in a lump sum

RTNI

We overpay the same amount for the last few months and send this to the bank in chq form. For us, we have to overpay by £500 or more for the balance to be reduced and recalculated immediately, so that's what we do.

HumbleBumble_3

bownyboy wrote: »

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.

That's the reason why I want to overpay on my mortgage so that what I was paying towards my mortgage would then be put into ISAs etc. for our pension. Even if it is only for five years it would be more than I could manage to save now towards a pension.

I had this discussion with my husband last night as he is not overly keen on overpaying the mortgage but he is slowly coming round to the idea. He said that overpaying the mortgage is like putting into a pension in the way that you can't get it back but then I pointed out that he doesn't have a pension and this is a sensible way of doing things and he will get the money before he gets his pension!:D

The other way that I am getting him on board is by saying that if we pay the mortgage off early but still save the money that we would have been paying we would be able to use some of it to go on our dream holiday - with our zimmer frames!:rotfl: