Overpayments - HAPPY !

967stuart

headoutthesand wrote: »

Over paying is a great idea and I've always done this since I first got a mortgage in 2004.

I only round it up to the nearest £100 or £50. At the moment I only pay an extra £13 a month to take me from £287 to £300 but it's better than nothing.

I have the same reaction from friends who had their mortgage drop by £200 with Northern Rock. Their house was in negative equity by a good £15000 but they didn't overpay, just used the money for luxuries

Some friends of ours were on a tracker and their payments went down to something silly like £300 a month !! this lasted for over 2 years and in that time they didn't make a single overpayment.
Their property is also about 5k in negative equity! (they purchased a new build just before the a$$ fell out of the market)

Every little bit makes a BIG difference, I think we saved our selves something like £10,000 interest last year.

beth111

Good luck with your morgage free goal & well done on your overpayments. :beer: Im also 29 and hoping to FREE between 40 & 45:eek:

967stuart

Excellent Beth, and looking at your signature, you are well underway.
Good luck. :beer:

mintedmatty

headoutthesand wrote: »

Over paying is a great idea and I've always done this since I first got a mortgage in 2004.

I only round it up to the nearest £100 or £50. At the moment I only pay an extra £13 a month to take me from £287 to £300 but it's better than nothing.

I have the same reaction from friends who had their mortgage drop by £200 with Northern Rock. Their house was in negative equity by a good £15000 but they didn't overpay, just used the money for luxuries

What a missed opportunity that would impact their future financial lives.

newgirly

Hi, welcome to the mfw boards, you will find a lot of support on here. Have you thought of doing a statement of account to see if any more savings can be made?

pinkteapot

I have an Excel overpayments template. Each monthly overpayment we make is entered on it and it automatically shows how much in total has come off the term of the mortgage and how much we've saved in interest. So far it's something like 46 months and £7,500 off.

If you google you can find similar files and if you're a bit techy with Excel you can tweak them to display exactly what you'd like to see.

sweetdaisy

967stuart wrote: »

Thanks guys and girls, feels great to able to make a little dent in it.

Im very lucky that my wife is very strict with me (Im 29 and on 'pocket money' lol) , she is in charge of the finances and is determined that we will will get our house paid off asap.

She has one of those spread sheet calculators that you put in your monthly payments and its works out the interest etc and shows exactly just how big a difference paying as little as a tenner can make in the long run.

*Lizzywig* - as said, give them a bell and find out what you can overpay each month, mine was a limit of £499 per month. (think it normally works out at 10% or something like that)

I was paying close to £1100 a month (£850 of which was interest .... so really I was only paying £250 off the capital) so £250 x 12 months = £3000 (so basically when overpaid a further 3k we saved ourselves 1000's in interest).

So worth doing (providing your borrowing rate is higher than your savings rate)

Your wife sounds like me :rotfl:!!! I sort out all the finances and we allow ourselves a weekly spending allowance.

Our mortgage is due to be paid in 14 years when I will be 46 years old (hubby will be 52) but I am determined to pay it off early - it would be great if I could get it paid in 10 years when I'll be 42

headoutthesand

mintedmatty wrote: »

What a missed opportunity that would impact their future financial lives.

Yeh and both of them work in a bank and earn good money.....

Both have a bit of debt but have £1000 left over to 'play' with each month before the extra from NR

967stuart

sweetdaisy wrote: »

Your wife sounds like me :rotfl:!!! I sort out all the finances and we allow ourselves a weekly spending allowance.

Our mortgage is due to be paid in 14 years when I will be 46 years old (hubby will be 52) but I am determined to pay it off early - it would be great if I could get it paid in 10 years when I'll be 42

LOL, Im lucky she is good with the money, I used to be shocking, If I had then I would spend it!

Early 40's would be brilliant to have it paid off and then you can enjoy your wages instead of giving it all to the bank

abouttimetoo

Welcome to the board 967 Stuart

It sounds like you have the enthusiam and motivation needed (not to mention Mrs Stuart as the added incentive )

Good luck with your plans, you're doing great so far

PS, be warned, this gets addictive