Every little helps

Alion

After reading on here people's success stories, OH and I decided that we would try to overpay by £500 (maximum allowed in a month) four times a year, building up our savings inbetween.

We took on a scary £207,000 mortgage in February and put in our first overpayment last month. We got a letter saying that we'd knocked off three months from our term!!! (we pay £1200 a month currently)

I can't believe how much difference it's made. We don't have a grand aim like a lot of people on here, just want to reduce it a bit so we're in a better position to upsize when we have kids. But thanks, and I thought I'd share our success in the hope it'll inspire others!!!

miniloopie

Thanks for posting that! It's given me new hope that we might one day be in a position to overpay even just a little bit and it will make a difference!

I know people always assure me that it does, but hearing a 'real life' success is even better.
Keep up the good work :T

Alion

we paid £500 and reduced our projected costs by £3600 - it's unbelievable!

nelly_2

Alion wrote: »

we paid £500 and reduced our projected costs by £3600 - it's unbelievable!

Thats a lot, how did you work that out?

tigtag02

nelly wrote: »

Thats a lot, how did you work that out?

Sorry to go OT but Nelly I just LOVE your sig!! I always used to say why should the smokers go outside when its the non-smokers harping on about wanting the fresh air ;)

Alion

nelly wrote: »

Thats a lot, how did you work that out?

we got a letter saying we'd reduced our term and it's a full three months earlier than before.

it's set up as £1200 a month throughout the term

i know it's not perfect maths as we'll chop and change and the rate's fixed now and all that, but it sounds fantastic, doesn't it

afro_2

What is your mortgage term?

Alion

afro wrote: »

What is your mortgage term?

25 years. our first payment was February

sarmia

I too have made my first overpayment today of £200.00 off our repayment mortgage of £120,000.

My aim is too overpay by £7k by Feb '11 which is when our 5yr fixed rate ends so we will just be under the £100k mark. We've just had baby so things are tighter but we have no other debt so I will do it.

Good luck... every penny counts!!!!!!!!!!!!!

joughtib

My mortgage is for £147,725, and I always try to over pay each month, to get it below a 1000, or 500, for example at the time of this post, my mortgage is £139,972.56, which looks better than £140K!

My main aim is to make my final payment on 29th January 2016, which is the last day before I turn 40! Big pipe dream, but I'll keep trying to get there until after the deadline. I'm maximising by mystery shopping, and looking for another PT job, but the people take one look at my FT job and wonder why I want to earn NMW for working behind a bar!

sarmia

Ideally i'd want to be mortgage free when i'm 40 too, got 16 yrs so good chance....fingers crossed!!!!!