2012 mfw

originator

Hi #110 reporting in with £300 overpayment so far for July:)

MsWow

Hi everyone,

Quick update from #26
April should be 584
May - 579
June - 578

Good luck to everyone:j

greent

Purely an administrative thing. If £1500 reduces it by £15, if you OPd £100 it would be £1 - too negligible as to bother with in a corporate sense.

Spiggle

Good morning all,

All updated for you Barny, great sales.

Love the words "so far" originator! All updated for you.

Thanks for the update MsWow, all done now.

Sorry Southernman, I can't help you but I would think the responses so far will be correct.

See you later,
Spigs

greent

Evening all

No 28 reporting in with July's OP of £858.57

Not expecting any more OPs this month

Spiggle

Good morning all,

An excellent OP greent, all updated for you. You're at a fantastic 96.03% of your second target! Brilliant!!!

See you later,
Spigs

fluffysox

Hello All,
Glad to see the board is still going strong. Apologies I've not posted in months. Had a break from OPs at the end of maternity leave and despite having been back at work for a few months I haven't got round to sorting out new budget and updating my banking until this week. We haven't been as disciplined as in the past but have now resolved that we want to be Mortgage free in five years and then move to a bigger house if we can (for a new MFW quest lol).
So overpaid £2300 this month and we will OP as much as we can before the end of the year.
fluffysox.:j:j:j:j

Suffolk_lass

Southernman wrote: »

Can someone explain why on a Fixed rate after making a large lump sum overpayment of £1500, my monthly mortgage normal payment has reduced by £15?

Does this happen with all repayment mortgages or is it something specific to fixed mortgages??

I'm probably being dumb but i would have thought the other mortgage overpayments i've made would do the same but for some reason it's only the case if it's over £1000, why might this be??

Am i better off paying big lump sums?

Long time lurker here. I think I know the answer to this as I have previously asked this question of two previous mortgage providers.

When we were with the Nation-narrow BS it was their policy not to recalculate your repayments unless their threshold was reached. It was just a policy (and we were merely rounding our repayments up to the nearest £50 to over-pay down gradually). We only discovered the policy when we had a tax rebate and used it to pay a lump off. Other than that they used to recalculate when the interest rate changed (won't affect you) or annually, to ensure we were on track for our end date. The policy did not make any difference to the mortgage reduction or interest calculations.

However, when we were with the L-TSB as our providers, they treated overpayments as advanced interest rather than capital reductions unless they exceeded £1000 - unless you specifically told them otherwise. We thought this was very sneaky.

I HTH.

Now I've "come out" on your thread I just wanted to say well done to everyoone that is over-paying down their mortgage. We are pursuing a slightly more risky path to pay ours off at the moment but I keep reading as you are all so inspirational. Well done Spigs, I see why you are MIA from the GC now!

All the best
SL

Spiggle

Morning all,

Welcome back fluffysox, you just bust your target in one payment. Brilliant!!!

Thanks for your advice Suffolk lass, good to see you over here. I've lost all my spreadsheets (still hoping to recover them) so have pulled out of GC for July as I don't have a monitoring tool at the moment. If I don't get the files back, then I'll have to start rebuilding the spreadsheets. I am keeping an eye though, keeping receipts and a very firm hold on OH, lol!

Take care all and I'll see you later.

All the best,
Spigs

cardiffmatch

MFW #151 checking in again.

It is four days til payday (early cos of the weekend, yippee!:j) so I've looked at my current account balance and been able to make an additional OP of £121. This may seem an odd number but it rounds up my offset account to exactly £5000 which is nice. I will try hard for the next four days to have the extra £29 leftover in order to bring my OPs since joining this thread to exactly £2000, which would be lush.

I'm really enjoying reading everyone's diaries. After a few weeks cogitating, I'm nearly at a place where I will start my own. I've used the last few weeks to think about what my plans for our (my) current flat are, when we might buy a place together (that'll be our next home) and where my training job will take me in the next couple of years, which all helps with planning the MFW quest. Is an offsetting diary pretty much the same as a MFW diary, if the intent is the same?!