Many mortgage borrowers overpaying

Thrugelmir

Radiantsoul wrote: »

I am sure some people do pay off their mortgage quicker. But the main reason mortgage debts are falling is because of fewer houses being built.

Net mortgage lending is up around £30 billion since 2009.

A considerable difference from the increase of £420 billion in the period 2004-2008.

So a long way to go before bringing the mortgage debt level down to a sustainable level.

The issue of interest only mortgages is hanging out there.......

robmatic

Thrugelmir wrote: »

Net mortgage lending is up around £30 billion since 2009.

A considerable difference from the increase of £420 billion in the period 2004-2008.

So a long way to go before bringing the mortgage debt level down to a sustainable level.

The issue of interest only mortgages is hanging out there.......

Seems to be heading in the right direction. There's about 100,000 new houses built each year so they should account for say an annual increase in net mortgage lending of £15 billion or so each year since 2009.

Thrugelmir

robmatic wrote: »

Seems to be heading in the right direction.

Net lending is still up. At some point will be heading for a decline.

Ronaldo_Mconaldo

When we got our house we took out a fixed rate mortgage for 5 years. I thought it would be good to set a target of overpaying by £2,000 a year for 5 years making it £10k, which is a nice round number.

Anyway things have been better than I expected, we paid an extra £500 here and there for the first couple of years but last year we paid £500 a month for a few months and I thoughht it would be good to see how many months we could go. We've now gone 24 months of consecutive £500 overpayments. By the end of the five years (summer next year) we should have overpaid by £25k and knocked off a decade of the original term (30 years) through overpayments.

jonewer

Paid off earlier this year.

Regardless of the fraction of a % loss or gain either way, we now know the house is ours and if either or both of us lose our jobs, we dont have to worry about losing our home too.

Its also great to be 100% debt free again.

SteveV2

Not overpaid. just saved more as the ISA rate is higher than the mortgage rate.

Although I have a mortgage, I could pay it off right now

katejo

I made overpayments from the time when the interest rates dropped until just over a year ago. It means that i have paid off almost a third of my mortgage capital in 7 years. For the past year have been using the spare cash to have a new kitchen fitted in my house. I now have the kitchen so will return to overpayments soon.

downsizer3

Overpaying.
Downsized nearly two years ago as my job was looking shaky - just as well - going to be out of a job next year and only have a wee mortgage left to worry about. Thankfully I've saved up enough to cover that - certainly wouldn't be coping with my previous mortgage.

Kennyboy66

we overpay roughly £500 a month (2% above base tracker, mortgage roughly 20-25% of house value) despite me knowing that its a fairly dumb thing to do.

As we are at least 20 years off retirement, the money would be much better off going into a shares ISA or a pension.

Another risk averse idiot signing in.

andyroberts1967

Kennyboy66 wrote: »

we overpay roughly £500 a month (2% above base tracker, mortgage roughly 20-25% of house value) despite me knowing that its a fairly dumb thing to do.

As we are at least 20 years off retirement, the money would be much better off going into a shares ISA or a pension.

Another risk averse idiot signing in.

I'd be doing exactly the same as you Kennyboy66 - you've got ages till retirement so you'll still have loads of time to put extra into that, as you'll have paid off the mortgage earlier. It's swings and roundabouts really, but I'm sure you won't regret it when you have that feeling of being out of debt in a few years. Keep going and well done!!