2012 mfw

Malski

waughc01 wrote: »

Number 37 signing overpayment of £16,000 !!!!

As of today we are MORTGAGE FREE !!!!!!

I would like to take this time to say a massive thank you to everyone on this site for keeping us motivated and reaching our goal. We have learnt so much from reading other peoples diarys. Thank you, we would both like to wish everyone the best of luck with their mortgage free journey.

Well done fantastic news :beer::beer::beer::beer:

mortgage_destroyer

Hiya everyone

No 152 have made an overpayment of £500 for June:)

Thank you for your kind words Lavenderbees & Spiggle I'm really pleased I've found this forum, am finding reading everyones comments on here really motivating too thanks guys wished I joined years ago!!!

mortgage_destroyer

I'm new to all this so sorry if this sounds stupid, when making my overpayments I was asked if I wanted to shorten my term or reduce my payments. I went for the reducing payments option as have always done fixed rate deals & my mortgage payment was £650 per month, at the end of March this year the fixed rate ended & my mortgage payment went down from £650 to £500 a month so I thought if I could make a few op wi interest rates are low then hopefully when the interest rates rise again my mortgage payment will be lower.

Jock_Tight

mortgage_destroyer wrote: »

I'm new to all this so sorry if this sounds stupid, when making my overpayment's I was asked if I wanted to shorten my term or reduce my payments. I went for the reducing payments option as have always done fixed rate deals & my mortgage payment was £650 per month, at the end of March this year the fixed rate ended & my mortgage payment went down from £650 to £500 a month so I thought if I could make a few op wi interest rates are low then hopefully when the interest rates rise again my mortgage payment will be lower.

Is there a limit on how much overpayment's you can make with your lender over the year? Some only allow say 10% so shortening the term allows them to overpay more.

While your required payment has dropped have you kept the payment at £650 ?

Spiggle

Hi mortgage destroyer, first of all your great OP is updated.

Presuming, as you said earlier, that you've just finished a fixed rate and can now overpay without limits, I would reduce the monthly payment rather than shortening the term.

There are a couple of reasons. Firstly, as you have I think realised by reducing the monthly payment you are able to overpay even more if you keep the monthly figure at or near what it was originally. Thus the 'value' of the OP is maximised. Secondly, if anything goes wrong in the future, God forbid, or when rates begin to rise again then having the term still at the original end date will mean a lower 'required' or minimum monthly payment easing any situation where you may be low on income.

To those of us with a mortgage the low interest rates are a great incentive to pay off as much as possible off the capital now so there is some 'insulation' if and when rates rise. (They're also a pain to those of us seeking good accounts to build up offset savings though!)

All the best,
Spigs

tina01904

Hello

I have been not been a regular poster (or mortgage overpayer) recently as I'm getting married later this year so have been saving for that, but I have been making little overpayments and am hoping to make a few more larger ones in the coming months.

Since my last post I have overpaid by £301.72 making my new total £1996.98 for this year

Spiggle

Hi tina01904, every little helps and you do have a very important event to plan for! All updated for you.

Take care,
Spigs

wonderbee

Can you please add me to your list? my circumstances changed drastically over the last year and I need to really work hard to get rid of this mortgage.
Thanks
Wonderbee

wonderbee

Sorry I forgot to mention I want to overpay by £2000 this year.
Thanks
Wonderbee

Spiggle

Evening everyone,

Welcome to our newest challenger wonderbee who has joined us at No.154. Good luck with the challenge!

From the googledoc, a great OP from Lulabelle1 and she joins the list of those well ahead of target at 58.56%, excellent.

I have an early start and late finish tomorrow so may not get a chance to update. Please post as normal and I'll get to you sometime on Thursday.

Take care,
Spigs