Just made the first step! 23 September 2011 at 12:28PM in Mortgage-free wannabe 1 reply 565 views

suz_87

Well we've finally done it. This morning I have setup a regular payment for over-payments to our mortgage. £7 a week, not a lot I know but It all helps I suppose. We have a mortgage of just under £72000 remaining, I could possibly add a little bit more to the over-payments each month but we get married next year so need to save a bit for that too!

Does anyone have any tips for how to accumulate some more money to make bigger over-payments?

Also the mortgage company said that we can make over-payments at any time etc but unless the payments are over £1000 they won't recalculate the interest until the end of the year, is that right?

Thanks

SeriouslySeekingtoSave

All mortgages are different so unless someone has exactly the same mortgage as you (same lender, same mortgage deal) they likely won't be able to answer your specific questions regarding your mortgage. The normal way to figure something out is to carefully read the Terms and Conditions of your mortgage and then speak to your bank if you have further questions. Although, bank staff seem to frequently give conflicting answers so I'd actually apply for a response in writing if it's important.

However if your OP's are only recalculated once a year then I wouldn't bother making weekly payments of £7 to your mortgage - make them to a savings account instead. Then work out exactly when the 'recalculation' takes place (get it in writing...) and transfer the money from your saving to the mortgage just before this takes place. Why on earth should you be paying your bank that money every week when you aren't getting any benefit from it, which if I'm understanding your statement, is what is happening.

Regarding ways to make money, well, there are lots. I personally don't really do any of them as I'm just too lazy (or at least I'm too busy if you want to be more charitable... :-)) but if you read people's diary's and ask questions directly from the people who do do the surveys, necter points, Tesco Clubcard etc etc you'll soon work out ways to add to the pot.

I am beginning to be a bit more money savey by using 0% credit cards, bank accounts that pay me money and various other ways to rake in a little bit more on the side. Everything I've done I've learned from this site; it's really just a case of reading and taking in the knowlege.

Best of luck.