2012 mfw

mortgage_destroyer

Jock_Tight wrote: »

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 ?

Thks for yr reply Jock_Tight, I have checked both mortgage conditions & on 1 document for both mortgages it says there's an ERP charge for any overpayments over £500 month, (think thats because we have always been tied into a fixed rate deal up until 31/3/12) on another document for both mortgages it says u can make unlimited overpayments!!

To be cautious as I dont want any ERP charges I will make overpayments at £500 or under on each one with not that we will ever have enough money to overpay by £1000 a month!!

mortgage_destroyer

Spiggle wrote: »

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

Thk u Spiggle I'm new to all this so I really appreciate your advice, we've never had the chance to overpay b4 as we've always been cautious & took the fixed deal option which has usually meant we r paying alot more. Totally agree with yr comments they sum me up completely as me & my husband both work in the building trade we never know what might happen with the recession. By ending the fixed rate deal at £650 a month, our payments are now £500 a month on the BMR, but I am overpaying £500 a month (if I can) so it lowers our payments each month (so far only by £3 a month but small steps!!) so when interest rates rise we hopefully have paid enough off so our payments never go above the £650 month level:)

financialbliss

Made an extra OCD overpayment on the first of the month, but forgot to report it here. Was just looking at the chart and noticed I'd forgot to supply.

Extra OCD overpayment was £100.00. June now looks like this:

#29 - Overpay by £10,400.00.

Month: Ideal Pay / Ideal Total / Ideal % / Actual Pay / Actual Total (Diff) / Actual %

January: 866.67 / 866.67 / 8.33% / 862.59 / 862.59 (-4.08) / 8.29%
February: 866.67 / 1,733.33 / 16.67% / 1,202.59 / 2,065.18 (+331.85) / 19.86%
March: 866.67 / 2,600.00 / 25.00% / 1,112.59 / 3,177.77 (+577.77) / 30.56%
April: 866.67 / 3,466.67 / 33.33% / 1,112.59 / 4,290.36 (+823.69) / 41.25%
May: 866.67 / 4,333.33 / 41.67% / 1,112.59 / 5,402.95 (+1,069.62) / 51.95%
June: 866.67 / 5,200.00 / 50.00% / 1,212.59 / 6,615.54 (+1,415.54) / 63.61%

Total overpaid: £6,615.54

Will start to get interesting from July onwards, as I'm aiming to ramp up the overpayments a little further.

Watch this space - OP details to to be published on the first in this thread...:D

Financial Bliss.

originator

Hi there #110 reporting in, got paid from one of my jobs today so £300 going to mortgage to bring me up to target for June.(only leaves me with £40 till next payday in a fortnight ),but it can be done!State pension kicks in mid July which should see me really attacking this lol.Thank you Spigs for all the updating:).

Spiggle

Hi All,

Must be quick as have to go in to work today.

Loving your OCD financialbliss! OP is noted.

You are bang on target originator, well done, all updated for you.

From the googledoc, your May Op is now noted ViHan, great.

Also your first OP of the challenge for MAY is noted wonderbee, congratulations.

See you all later,
Spigs

financialbliss

Spiggle wrote: »

Loving your OCD financialbliss! OP is noted.

As my mortgage rate is just 2.5% - I can get better rates with savings.

But taking savings ring-fenced for mortgage into consideration, it brought my mortgage down to just over £9k. The £100 OP (into savings) was to take the balance under £9k

FB.

wonderbee

Thank you for your encouragement. I will work hard to achieve this goal. It's been a difficult 6 months since my husband passed away but I know I have to achieve this in order to give my family a better future.

pammyj74

no 53. signing in with another £100 OP,
total for month £300, total for year - £3070

Spiggle

All updated for you pammyj74, well done.

All the best,
Spigs

TwinnyD

No. 128 with June overpayment of £220