Overpaying £100 at a time

yukkibear

I toyed with the idea of keeping my old diary, or starting this new one, but after playing around with figures, I realised that if we overpay in £100 chunks, then we could be free after 250 of them.

£100 doesn't sound unachievable to accrue each time, and thus makes the challenge feel psychologically easier.

We have two mortgage products. One has £71,770 outstanding at 3.59%. We can OP this product by up to £500 per month.

The other has £19,500 outstanding at 2.54%. We can OP this one by 10% per year (works out to be around £160 max per month, so my £100 fits in nicely without worrying about early redemption fees).

Both these rates are fixed until Dec 2014 (3.59%) and June 2015 (2.54%)

Depending on what happens between now and the next fix time will determine whether we switch to the SVR rate or fix again.

By OP £100 to each product per month, we would see the end of the smaller mortgage in Dec 2021, and then by adding the £100 to the bigger mortgage would see that one gone in June 2026.

But........

We obviously want it all gone before then... Ideally I want it all gone by Dec 2021 just in time for my 45th birthday.

Here goes......

yukkibear

1. 23/10/13 - £100 (bingo, TT's, selling unwanted, SE work)
2. 1/11/13 - £100 (SE work, selling unwanted)

newgirly

Hi yukkibear, best of luck! I would love a 2021 end date as well as my youngest are 21 that year although I will be 46

XSpender

Hi yukkibear

Good luck paying off your mortgage in bitesize chunks. This is how I am going to be tackling mine too. £150 at a time off the 2nd mortgage and when thats gone next year £250 off the 1st mortgage.

I will be popping in to pinch some ideas;)

XS

HelenDaveKids

Hiya, wouldn't you be better off concentrating in paying the biggest one first, if it has a higher interest rate?

HDK x

edinburgher

Happy new diary :j

I have to agree with HDK - is there some reason you've not stated that makes it a good idea to pay off a lower interest rate with the same payments as a higher interest rate?

yukkibear

Morning

No to be honest it was more psychological, but yes I guess it makes sense to concentrate on the larger mortgage first.

A small TT this morning of 82p. Have £10.54 in the OP pot. Waiting on £40 for some extra work I've done for someone which should arrive next week, and have £10 from a local selling site.

zolablue25

Good luck with your mortgage! I have to agree with the others that it makes sense to overpay the highest rate first - no point throwing money away. We (technically) got rid of our mortgage a couple of years ago and it feels really good. We have one of the offset mortgages so whilst we, technically, still have a mortgage we don't get charged for it as the cash is there to offset it IYSWIM. One of the thngs I did to get the mortgage down was to use long term "No interest on purchases" credit cards, pay the minimum off each month and use the money we would have spent to offset our mortagage (in a dedicated savings pot). When the offer ended we paid up in full and then started again with another CC. Not sure how this would work with a standard mortgage though?

Anyway, good luck!

yukkibear

Not a lot coming in this weekend, but we've been enjoying the fresh air and spending time together without spending any extra cash.

Nothing moving in my bank account which I guess is a good thing so I TT'd £1 each day, yesterday and today across to the OP pot, and £10 from a selling site.

yukkibear

£1 tt'd today
£7.04 in PP from an online sale which I'll transfer out tomorrow as expecting another payment tomorrow, so may as well do it all together.
Did a Bingooo offer at the weekend which netted me £15 CB for a £10 deposit (didn't win anything on play through) and hopefully a £10 supermarket voucher. CB has tracked so fingers crossed it wont take too long to validate.

Took yesterday's leftovers to work for lunch so a NSD here

yukkibear

11p in TT today :rotfl:

£45.37 from PP from work done and a small sale as previously mentioned.

Am currently playing through another Bingo offer to see if I can get lucky.