Overpay or home improvements?

mustang121

Is there any one who doesn't make overpayments?


I have a joint with a Fixed mortgage.


£65,540.37 is outstanding with 23 years and 6 months. If we continue to make regular payments with no overpayments for the duration of the mortgage then will it definitely be finished in 23 years and six months?


It really sounds like a lot and I hate it. It is the only debt that we have and ever have.


When should people start making overpayments? I'm terrified when I watch the news and how interest rates may rise.


I'm torn. I really want to be Mortgage free, but on the other hand I want to save up for a wedding, then a bathroom and then a kitchen.


What is the minimal amount that people overpay per month?

suse*

No one can answer that for you really. It depends on your own situation.

You have to think how old am I, do I want kids sometime (or do you have some already that might want a big wedding or uni or something), do you want to move house in that time. Do you want to pay less to the bank in interest and also pay it off faster than the 23 years, do you want to start paying faster so when the rates go up you have a bit less to then earn more interest against.

If you look at the diaries on here lots of people have different motivations for over paying. What you will see is even a quid here and there can make more difference than you might think.

It is worth playing with overpayment and new mortage calaculators so you can see how quick a the over payments can add up. Also though in the reverse if your rate went up 1% or 5% how much your payment might rise too.

So if you took a guess that the rates would rise just 1% in the next 18 months say, wouldn't it be better to change your direct debit to be that new amount now anyway? Then you could get used to paying more but would actually be saving yourself money in the long run too.

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

There will always be something you want more, a holiday, a kitchen etc etc but only you can decide how you want to spend your money and how much you have planned already for your futures. Do you have an emergency fund incase you couldn't work for 6 months say? Some people count savings as virtual over payments, so then you can still get to the money and maybe even earn a bit more interest than what your mortgage rate is.

No one here can predict your future for you though, you can just look at your own situation and think of every worse case for the next 23 years and how you might deal with that.