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How to convince DH its worth doing?

We are currently paying £350 pounds a month on a 34,000 mortgage which has till 2018 to run.

There is no way I want to still be paying this till that date and would like it paid off at least 2/3 years earlier.

Ive started paying off an extra tenner a week when we have a little spare in the current account but DH thinks its a waste of time and won't make much difference after interest is charged. Im not sure of the numerical facts but believe every little helps and want to carry on over paying but how do I convince him?

Interest is charged daily by the way and no penalties for over payments.
Make £10 a Day Feb .....£75.... March... £65......April...£90.....May £20.....June £35.......July £60


  • Get hold of one of these mortgage calculators. ( a few bods on the forum will email them out to you if you PM them ).

    Once you see the difference £40 a month makes.... you will want to find more.

    In fact try this one out here..
    OK it's US based - but put in your £ amount where it says $.

  • David_B_2David_B_2 Forumite
    718 Posts
    I had the same problem with my wife. She did not fully understand why we should put every spare penny into over paying our mortgage. I then worked out what interest and time we would save and hinted SHE could have a new car with the savings we had made!

    Plus showing her the annual mortgage statement help too because 75% of our yearly repayments where interest alone!

    If only I had a pound for every time I used the thanks button :D
  • Kantankrus_MareKantankrus_Mare Forumite
    6.1K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    I must admit Ive been a little obsessed with getting the mortgage paid off as quick as possible as I hate seeing money wasted on interest when I could have it in my pocket.......but there are also other things we need to fund such as , doing the garden and redecorating our bedroom which hasn't been touched for 12 yearsasn't been touched for 12 years:eek:

    Are others quite as obsessed as me? I just keep thinking how nice it would be to not have that mill stone to pay every month but of course you have to live as well. :confused:
    Make £10 a Day Feb .....£75.... March... £65......April...£90.....May £20.....June £35.......July £60
  • David_B_2David_B_2 Forumite
    718 Posts
    I must admit Ive been a little obsessed with getting the mortgage paid off as quick as possible

    Are others quite as obsessed as me? I just keep thinking how nice it would be to not have that mill stone to pay every month but of course you have to live as well. :confused:

    I was the same until very recently (3 weeks ago) when I had one of those stop and think moments after seeing something very upsetting on the news.

    I'm going through a 'Life's to short' and 'We need to make the most of it' phase.

    I'm still over paying the mortgage by the same amount but in a more chilled manner with the attitude that we'll enjoy what we have got as well.

    But yes I fully understand what you are saying it can take over.

    Have a look at my post on the charity board called "The Miracle Boy" as it could do with a bump up to find out what made me stop and think.

    Other than that carry on with the good work.

    If only I had a pound for every time I used the thanks button :D
  • cupid_scupid_s Forumite
    2K Posts
    We recently upped our monthly payments from £430 to £515, the maximum overpayment we are allowed whlst our mortgage is fixed. We just got a statement showing we've knocked 6 and a half years off the length and we're saving over 16k.

    Although I don't know how much interest you're paying I imagine you'd pay it off around 18 months earlier just by overpaying £40 a month.

    this is a good online calculator that works out what good your overpayments have on your debts/credit cards/mortgages etc....
    Make £10 a day challenge March 2013 £101.24 / £240 :j
    WSC 10 March - £0 / £5
    Debt £17,294 - 7th March
  • jamesdjamesd Forumite
    25.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    It's easy to explain: every pound you overpay on a competitive mortgage instead of putting in a competitive cash ISA makes it take longer to pay off the mortgage and costs you money.

    That's because competitive cash ISA rates are higher than competitive mortgage rates, so you lose more in interest on the ISA than you save in interest you don't pay on the mortgage. In this situation your fastest payoff option is to save then use the savings to pay off the mortgage if savings rates fall below mortgage rates or you reach the point where you can pay off the mortgage. Though you're actually better off to wait for it to reach its end, then pocket the difference.

    Say you had a choice between overpaying on a mortgage at 5.2% and saving in a cash ISA at 5.8% for 25 years and chose to overpay by 100 a month. 25 years later you've saved 31627 in mortgage interest, which sounds great. The problem? The ISA would have made you 37529 in interest and you're worse off by 5902 by overpaying! That's enough for you to pay the mortgage off quite a bit earlier.

    Doing this with an interest only mortgage and putting the difference between interest only and repayment into the ISA is an even better deal, because even more of your money is making the higher cash ISA interest rate.

    If the rates change to make mortgages more expensive than cash ISA interest, Intelligent Finance offer an offset mortgage that offsets cash ISA savings. When ISA rates beat mortgage rates you put the ISA money in another ISA. When mortgage rates are higher than ISA rates, you move the ISA money into the ISA offset account and save the mortgage interest instead. Then you win either way and swap back and forth as needed without losing the accumulated ISA allowance.

    Overpaying makes sense when after tax savings rates are below the mortgage interest rate and that's not true today for those with good mortgage rates and unused ISA allowance. Those paying higher mortgage interest rates than usual can still be better off overpaying, as can those paying higher rate tax who have already used all available tax breaks.
  • TheWootTheWoot Forumite
    14 Posts
    Can i suggest anyone interested in paying their mortgage off quickly looks at the skipton building society interactive mortgage calculator.
    It shows the effect of paying more off each month, yes a tenner makes a huge difference, also the effect of lump sum payments.
    I am fascinated and it has inspired me. Good luck!
  • exilexil Forumite
    1.2K Posts
    Such calculations tend to ignore the effect of inflation. Even at 3%,
    this means that £1 today is worth only about 50p in 25 years time - so a gross saving of say £50,000 over 25 years isn't really as large in terms of 2007 £s as it appears.

    In the days when inflation was 10% to 20% a year or even more this had the effect of reducing mortgage payments to virtually nothing in real terms in a couple of decades. Not quite the same these days but we don't KNOW that inflation will always stay low.
  • HammersFanHammersFan Forumite
    344 Posts
    I think the other advantage of overpaying is that as you over-pay, you can over-pay more each month. So if you over-pay £200 in month 1, the interest on that £200 you would have paid in month 2 can be used to add to overpayments in month 2 (i.e. £201, and £210 by the end of year 1). This sound like a small amount at first, but over a number of years it can really make a difference - its using the principle of compounding to pay off the loan. This might bring the mortgage pay-off principle more in line with the save in cash ISA approach (but I haven't done the calculations). Another way to do this in an off-set mortgage is to make a fixed payment off the loan each month (i.e. don't use off-set savings to reduce payments), and build up your off-set savings: that way an increasingly bigger proportion of the regular monthly payment goes towards paying down the capital balance.
    18 May 2007 (start of Mortgage):
    Coventry Offset Mortgage £220800
    Offset Savings: £0
    Mortgage Balance: £220,800

    14 Jan 08
    Coventry Offest Mortgage: 219002
    Offset Savings: 28200
    Mortage Balance: £190802

    And still chucking every spare penny into it!
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