Mortgage overpayments. Do you, would you?

edited 6 February 2013 at 8:02AM in Money Saving Polls
6 replies 2K views
ben501ben501 Forumite
668 Posts
Part of the Furniture 500 Posts Name Dropper
edited 6 February 2013 at 8:02AM in Money Saving Polls
The question arises occasionally on the MFW forum so I hoped to ask a wider audience.

With interest rates being so low this can be a good way to save thousands of pounds in interest payments.

Do you make overpayments on your mortgage 24 votes

Yes
54% 13 votes
No
12% 3 votes
I did but I've paid it all back
12% 3 votes
I would if I had spare cash
20% 5 votes

Replies

  • Andy_LAndy_L Forumite
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    No: I get a better rate by saving/investing spare cash than overpaying the mortgage. When/if that changes then i'll pay some off
  • I was addicted to making overpayments on my mortgage, ended up paying it off 9 years early :)
  • TBagpussTBagpuss Forumite
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    Yes. When mortgage interest started to go down I left my payments at the same level (initially because I felt it would then be less of a shock when rates went up again)
    I'm currently on course to clear my mortgage 9 years early, and the interest I've saved is more than I'd have got back elsewhere. (also, if (god forbid) I lost my job I could go about 2 years without paying the mortgage, if I had to, without getting into difficulties .
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • Yes, we do. Over the years we had actually taken out three separate mortgages, making our repayments £500 a month. Two of these were endowment mortgages (yes, I know!), so we paid another £100 a month for these. The first paid out three years ago, resluting in us paying off half of our existing mortgage and bringing the payments down to £300 a month. We have just carried on paying £500 a month since and are deriving hug satisfaction from seeing the sum owed plummet.

    Go for it!
    'Never argue with an idiot. They will only bring you down to their level and beat you with experience.' George Carlin
  • TurtleTurtle Forumite
    992 Posts
    Part of the Furniture 500 Posts
    We do, though we've also taken the full ISA allowance out of it for the last 2 years and invested it at 2% more than we're paying on the mortgage (it's a very low rate). Will pay it back that little bit quicker.
  • we got our first house two years ago on a 2-year fix. after switching, our payments have gone from £628 to £480. we are carrying on paying £630 to get rid of the mortgage in the shortest possible time.
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