2012 mfw

sweetdaisy

Southernman wrote: »

I want to join in! I've no idea how people can overpay by so much! Are most of you joint mortgage holders so two of you are saving away?

Anyway!

My plan for 2012 is to overpay by £3000, i know i'm due a bonus so will probably put around £800 in February and overpay £75 a month as a general amount. Hopefully a few bonuses throughout the year will put me in good stead for my target! Although you can never predict what the future holds!

We have a joint mortgage, but we are only able to overpay a small amount each month and are currently overpaying £59 a month on the mortgage. So I have the smallest target on 2012 mfw of £800 . However, as we have an Offset mortgage I am concentrating on saving more money in 2012 which is all used to offset so is a form of reducing interest paid on the mortgage and reducing the term.

sweetdaisy

Southernman wrote: »

I'm 22 so people are really surprised about me overpaying but it's all about a happy balance! I still have money left over for general savings and fun too!

Something i learnt recently is that with Natwest you can overpay through online banking and there is no minimum amount. Looks like i'll be raiding the pennies and silver jar i have!

I have an Offset Mortgage with Natwest and not sure if it's the same as you, however . . . I don't overpay through online banking. I phoned them up to increase my monthly payments as they informed me that payments made by online banking are both Capital and Repayment, whereas if you phone them and ask them to increase your payment i.e you want to overpay by £50 a month. The £50 overpayment is paid off the Capital alone, so this helps to reduce the interest you pay on the Capital.

madeupname1

sweetdaisy wrote: »

So I have the smallest target on 2012 mfw of £800 . However, as we have an Offset mortgage I am concentrating on saving more money in 2012 which is all used to offset so is a form of reducing interest paid on the mortgage and reducing the term.

Aww sweetdaisy - sad faces are not allowed when talking about overpayments because it all counts ! Out of interest - I am planning to remortgage next year and am thinking about going the offset route. Is putting the money in an offset account the same as making an overpayment (albeit one you can later on withdraw?). I assume so but wanted to double check

sweetdaisy

madeupname1 wrote: »

Aww sweetdaisy - sad faces are not allowed when talking about overpayments because it all counts ! Out of interest - I am planning to remortgage next year and am thinking about going the offset route. Is putting the money in an offset account the same as making an overpayment (albeit one you can later on withdraw?). I assume so but wanted to double check

With an Offset Mortgage, whatever you have in your offset accounts is used to offset against your mortgage so that you pay less interest on the Capital, which means you can reduce the term quicker. For example, if you have a mortgage of £100,000 and savings of £10,000 you will only be paying interest on £90,000 of the mortgage. I see it as I am able to have savings pots for emergencies and this money is being used to reduce the interest I pay and the term of the mortgage without me having to do anything. I am currently overpaying by £59 a month as well, but I am doing this as I am hoping to reduce the mortgage term by at least 4 years.

I am with Natwest and we are able to claim back any overpayments we have made, however obviously this means that you won't be able to pay your mortgage off quicker, but is peace of mind if there is a real emergency and you need the cash back.

madeupname1

sweetdaisy wrote: »

With an Offset Mortgage, whatever you have in your offset accounts is used to offset against your mortgage so that you pay less interest on the Capital, which means you can reduce the term quicker. For example, if you have a mortgage of £100,000 and savings of £10,000 you will only be paying interest on £90,000 of the mortgage. I see it as I am able to have savings pots for emergencies and this money is being used to reduce the interest I pay and the term of the mortgage without me having to do anything. I am currently overpaying by £59 a month as well, but I am doing this as I am hoping to reduce the mortgage term by at least 4 years.

I am with Natwest and we are able to claim back any overpayments we have made, however obviously this means that you won't be able to pay your mortgage off quicker, but is peace of mind if there is a real emergency and you need the cash back.

Thanks Sweetdaisy. The flexibility is certainly very appealing. I think it may be the way for me to go ...

icontinuetodream

madeupname1 wrote: »

hello i continue to dream. Your signature suggests you have made a payment of £828 towards your 2012 MFW target. Is that right? if so I need to update the spreadsheet for you!

Hi madeupname1...yep, I certainly have made the 1st OP (:j) but will be adding to it later this week...dh and I get paid a week apart generally....so wasn't going to 'declare' as such until next week when my other OP is added....didn't want to create additional work for you!!!

madeupname1

icontinuetodream wrote: »

Hi madeupname1...yep, I certainly have made the 1st OP (:j) but will be adding to it later this week...dh and I get paid a week apart generally....so wasn't going to 'declare' as such until next week when my other OP is added....didn't want to create additional work for you!!!

Great start to 2012 icontinuetodream! OM, spiggs, tilly and I love updates so I have updated the spreadsheet anyway. Feel free to let us have anymore as and when they come along.

Spiggle

That's a fantastic target you have Billywhiz, a new joiner at No.79, look forward to seeing your updates.

And welcome Southernman, my how I wish I'd had your nous when I was 22!!!

Good luck and welcome both.

See you later,
Spigs

jimmyjones_2

Hello, I would like join in!

My target for 2012 is £13,200, that's £1,100 a month which would be doable if I wasn't going on 2 expensive holidays in 2012 - fingers crossed I am helped out by a payrise and bonus

I feel like a slight fraud because I am saving rather than actually overpaying but my goal is to clear the mortgage by the time I am 40... at this rate I will be MF at 37.

originalmiscellany

Welcome JimmyJones - in at number 80, with a target of £13,200.
Don't feel fraudulent - anyone who is saving to clear the mortgage counts, as the end result is the same
Best of luck in your 2012 pursuits.