Completely new :/

1robert1

Hi I am completely new to wanting to be mortgage free sooner. I have 15 years left on my mortgage, and if i left it as it is would be MF when i am 44. I would love this to be sooner though. ( wouldn't we all)

I suppose my question is, is it worth setting up a small regular overpayment ( example £20-£50) per month, or try and save the money and pay in a oner at the end of the year?

I was thinking if i make a regular over payment, even just a small one, it will become like just a normal mortgage payment and i won't even notice it. Then could still put money aside to pay off some money at the end of the year.

My aim isn't to have it paid off asap but if I can shave a year or two off then perfect

Hope I've made sense.

Alchemilla

Hi and welcome. I guess it depends on how interest is calculated on your mortgage, daily? Annually?

1robert1

sorry i actually have no idea, this is far more complicated than i first thought ha!

jedi82

Hi, I have rounded my mortgage monthly payments up to the nearest hundred. That way I am overpaying by £23 per month but it doesn't feel like it. I then try to op other bits and pieces as and when I can. It's not much but I feel like I am doing something and I don't notice it!

1robert1

hi thank you. i think i too will do this

will ring mortgage company on monday. better to pay something rather than nothing

Siberianski

i would say yes it is

We are paying 600pm month at the moment an over payment of 175 per month due too having some arrears and the monthly interest on the mortgage is dropping quicker than it was.

I had a look at an over payment tool on here and if everything stayed as it was base rate which (not very likely i know) but our mortgage would be finished years sooner.

Have a look on the link below there is a mortgage over payment calculator, enter your details and have a look.

http://www.moneysavingexpert.com/mortgages/mortgages-vs-savings#result

1robert1

thank you looks like its totally worth me doing, even just a small amount a month.

1robert1

I have been reading a few posts on here and everyone's posts have given me hope that i too can be mortgage free sooner.

i thought when i got my mortgage that being 44 and mortgage free would be amazing but now i'm thinking to be 40 and mortgage free would be fantastic.

Will be 30 this year, so I best get looking at the best ways to pay off more a month or make extra payments

Siberianski

it definetly is even say 50pounds per month can make a reduction to the amount of interest you will pay back on the mortgage

1robert1

thank you. I will be ringing mortgage company up tomorrow after work and rounding my payments up to the nearest hundred. Then will put any "spare" money aside and then pay off some as and when.

I'm actually really looking forward to this challenge I'm setting myself (sad i know haha)

1robert1

Well a little later than originally planned but today i made my first over payment

£150 one off and then have set up another over payment every month to round my mortgage up to £500 p/m payments.

the plan is to continue you to make one off payments every month no matter how big or small, in the hopes that every little helps.

Feeling really pleased with myself. Happy Saturday everyone