Once more with feeling...

I feel like I have covered this ground before but my resolve is stronger now so here is my current situation:

We have managed to clear cc debts and have no other outstanding loans apart from mortgage which we have had since October 2011. I have no fixed expectation of when we can pay this off in full but all we want to do is get it paid ASAP - we are both 44 :D

Ok onto the financials - when we took mortgage out the purchase price was £118,500 and after deposit the mortgage balance was £94,314. As of today we owe £87,384. Mortgage payments are £547 per month with nationwide tracker and interest rate currently 3.5%.

I have been making regular monthly overpayments for a while now and have just raised monthly payment to £750 in order to make at least £200 pee month overpayment as with this product we can make unlimited overpayments. Redemption date is October 2031!!!! Yikes :(

We want to pay this off ASAP. My initial questions would be would i be better with offset mortgage as with this product they only bring down term if you make overpayment of at least £500 per annum? We have isa savings of around 26k but that's about it.

I'm just thinking out loud as probably lots of ways to save money in terms of credit cards, nectar points etc :)

Help me as my head is up in the air and I could do with some focus :beer:
Mortgage when started October 2011 : £94,134

Total mortgage balance Mar 2016 [STRIKE]£78,417[/STRIKE] [STRIKE]£77,523[/STRIKE] [STRIKE]£76,181[/STRIKE] £72,001
Offset Saver account Mar 2016 [STRIKE]£45,238[/STRIKE] [STRIKE]£45,666[/STRIKE] [STRIKE]£47,593[/STRIKE] £52,093
Mortgage paying interest on Mar 2016 [STRIKE]£33,179[/STRIKE] [STRIKE]£31,859[/STRIKE] [STRIKE]£28,588[/STRIKE] £19,907
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Replies

  • fluffysoxfluffysox Forumite
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    Good luck :-)

    Small changes and small OPs all add up :j
    2016 MFW OPd £2000, 2015 MFW OPd 3000 then bought new bigger house with bigger mortgage.
    MFW OPd 2014 £2000 2013 £9700 2012 £2848.39 2011 £2509.58 2010 £11000 2009 £112002008 £4939 :D
    Beautiful boys born May 2011 and October 2013 :)
  • I actually made an overpayment last month of £500 and got a letter in the post saying that term had been reduced but it would be great to have a more visual way of watching term and balance coming down :)

    Thanks for your reply!
    Mortgage when started October 2011 : £94,134

    Total mortgage balance Mar 2016 [STRIKE]£78,417[/STRIKE] [STRIKE]£77,523[/STRIKE] [STRIKE]£76,181[/STRIKE] £72,001
    Offset Saver account Mar 2016 [STRIKE]£45,238[/STRIKE] [STRIKE]£45,666[/STRIKE] [STRIKE]£47,593[/STRIKE] £52,093
    Mortgage paying interest on Mar 2016 [STRIKE]£33,179[/STRIKE] [STRIKE]£31,859[/STRIKE] [STRIKE]£28,588[/STRIKE] £19,907
  • edinburgheredinburgher Forumite
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    My initial questions would be would i be better with offset mortgage as with this product they only bring down term if you make overpayment of at least £500 per annum?

    Are you likely to overpay *less* than this? I ask as £500/year, while helpful, isn't a huge amount in the grand scheme of things. £500 payments annually on your current debt would take off maybe 2 years - I take it you're aiming for more than that? :)

    Also good to consider that your savings would reduce interest quite a bit in the offset, but everyone has different needs.
  • Are you likely to overpay *less* than this? I ask as £500/year, while helpful, isn't a huge amount in the grand scheme of things. £500 payments annually on your current debt would take off maybe 2 years - I take it you're aiming for more than that? :)

    Also good to consider that your savings would reduce interest quite a bit in the offset, but everyone has different needs.

    Hi there as you can see I am making monthly overpayments of at least £200 every month....I just asked nationwide to increase my monthly mortgage payment to £750 per month. That £500 was just an extra payment I made last month.

    Are there any mortgage providers with good offset mortgages? I don't have the income to be able to go for the first direct one.
    Mortgage when started October 2011 : £94,134

    Total mortgage balance Mar 2016 [STRIKE]£78,417[/STRIKE] [STRIKE]£77,523[/STRIKE] [STRIKE]£76,181[/STRIKE] £72,001
    Offset Saver account Mar 2016 [STRIKE]£45,238[/STRIKE] [STRIKE]£45,666[/STRIKE] [STRIKE]£47,593[/STRIKE] £52,093
    Mortgage paying interest on Mar 2016 [STRIKE]£33,179[/STRIKE] [STRIKE]£31,859[/STRIKE] [STRIKE]£28,588[/STRIKE] £19,907
  • Well my monthly payment came off today - my original monthly payment is £549 but the payment which came off today is £750. In addition to this I made a bit of money on Ebay so I have put this £64 straight towards the mortgage....will have to wait a couple of days before I see online how this is reflected on the balance.
    Mortgage when started October 2011 : £94,134

    Total mortgage balance Mar 2016 [STRIKE]£78,417[/STRIKE] [STRIKE]£77,523[/STRIKE] [STRIKE]£76,181[/STRIKE] £72,001
    Offset Saver account Mar 2016 [STRIKE]£45,238[/STRIKE] [STRIKE]£45,666[/STRIKE] [STRIKE]£47,593[/STRIKE] £52,093
    Mortgage paying interest on Mar 2016 [STRIKE]£33,179[/STRIKE] [STRIKE]£31,859[/STRIKE] [STRIKE]£28,588[/STRIKE] £19,907
  • freddykruegerfreddykrueger Forumite
    283 Posts
    Got my letter in from Nationwide today saying that payment will be £750 for the next 24 months....can't remember telling them to keep it going for a certain period of time or maybe it defaults to this??

    Did a couple of things today - have had a nectar card for a while but have just started to look at using it in anger to get some points and have also signed up to swag bucks although remain to be convinced by this....

    A few things I need to look at:

    1. My mortgage and whether it would be a good idea to move to an offset.
    2. My credit cards to see if I can make these work better for me.
    3. My current account to see if anything better out there as I am with Clydesdale bank just now and have been for ever!

    I'm planning to just update my signature every month with mortgage balance does that sound sensible?
    Mortgage when started October 2011 : £94,134

    Total mortgage balance Mar 2016 [STRIKE]£78,417[/STRIKE] [STRIKE]£77,523[/STRIKE] [STRIKE]£76,181[/STRIKE] £72,001
    Offset Saver account Mar 2016 [STRIKE]£45,238[/STRIKE] [STRIKE]£45,666[/STRIKE] [STRIKE]£47,593[/STRIKE] £52,093
    Mortgage paying interest on Mar 2016 [STRIKE]£33,179[/STRIKE] [STRIKE]£31,859[/STRIKE] [STRIKE]£28,588[/STRIKE] £19,907
  • edited 1 May 2013 at 9:53PM
    newgirlynewgirly Forumite
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    edited 1 May 2013 at 9:53PM
    Hi , welcome, if you want to keep a monthly record why not join the mfw 2013 challenge, you can update with your figures every month and easily see how you are doing :D best of luck!
    2022 MFW 67 - 33 month challenge to clear mortgage, month 3 completed and on track 🙂MFI3 No.12
  • newgirly wrote: »
    Hi , welcome, if you want to keep a monthly record why not join the mfw 2013 challenge, you can update with your figures every month and easily see how you are doing :D best of luck!

    Thanks newgirly where can I join the challenge?
    Mortgage when started October 2011 : £94,134

    Total mortgage balance Mar 2016 [STRIKE]£78,417[/STRIKE] [STRIKE]£77,523[/STRIKE] [STRIKE]£76,181[/STRIKE] £72,001
    Offset Saver account Mar 2016 [STRIKE]£45,238[/STRIKE] [STRIKE]£45,666[/STRIKE] [STRIKE]£47,593[/STRIKE] £52,093
    Mortgage paying interest on Mar 2016 [STRIKE]£33,179[/STRIKE] [STRIKE]£31,859[/STRIKE] [STRIKE]£28,588[/STRIKE] £19,907
  • newgirlynewgirly Forumite
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    Hi, it's called"mfw 2013" and is currently further down the pages of this board, sorry I don't know how todo links.:o
    2022 MFW 67 - 33 month challenge to clear mortgage, month 3 completed and on track 🙂MFI3 No.12
  • elantanelantan Forumite
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    Try adpoints for extra pennies on your nectar card

    Good luck
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