Completely new :/

sweetdaisy

Great start . I have rounded up my mortgage payments and it's great knowing that each month we are chipping away at it.

You will find this overpayment lark addictive though .

1robert1

yes i can imagine, i am already thinking of how much we can pay next month as a one off over payment. i am guessing it doesnt matter how big or small it all counts so hopefully most months i can make an overpayment even if it is only for £50.

i have got to say i am feeling really good about this and even if i only manage to shave a year of the mortgage its a year i dont have to pay it. so i will keep going and see what happens.

I did check my mortgage out though and notice it has two parts. one large amount £74,000 something and then a smaller second part of £1,000 something. would it be better for me when i am making over payments to clear the smaller one first and then start attacking the larger one? the smaller one is from fees when i took out the mortgage.

Pipz

Generally:

Assuming both elements are subject to the same interest rate then you can take your pick! The smaller loan will yield greater psychological benefit as you'll clear it faster.

However if the interest rates are different then pay off the higher rate loan first.

1robert1

thank you.

Both rates are exactly the same

greent

In that case I'd throw all overpayments at small one (assuming you're not limited to a % of the balance for OPs each year) - it will be gone really quickly and that's a good mental lift! Then put all money that was going to that one each month to the bigger one.


Even £5 here and there makes a difference. I put in all my cashback received from topcashback & quidco - it's extra money anyway, so I don't miss it. Same goes for ebay sales, tax rebates etc. It soon all adds up to make quite a difference!

1robert1

do i just phone up and ask how much in over payments i am allowed to make on each one before being charged?
i would love to have the smaller part paid off before xmas if possible and your right it would be a great lift once that is gone. i think i will be making another overpayment on monday.

I will be asking then for the bank details so i can just transfer money as and when i have it. i figured then even if its only £10 it will still be easier to put that on there than just waste it, as im sure we all do ha!

I am feeling really positive and now actually have my partner on board ( he was a bit of a non believer that we could actually do it lol)

in_need_of_direction

I try to identify vouchers etc that give instant savings on items I would buy anyway. I then op my mortgage by the amount saved. It really helps even where it's just a few pounds.

Miss_Moneysaver

Hi,


I am going to join these threads in the next month or so as we are hoping to pay off our mortgage in the next 3 years. I am 42 and, had I not gone part time and bought a bigger house, we would have been mortgage free years ago...ah well.
We have a 25 year endowment due to mature in March 2017 so I am hoping my payments (and any overpayments) between now and then will be enough (with the endowment) to clear the mortgage.
We pay £727 a month at the moment so I may increase it to £800 next month. We have an offset mortgage and can overpay easily online.
I have been part time for the last 10 years due to having 2 children lol. Also, we have paid HUGE childcare fees over the years so it has put paid to us having any extra for throwing at the mortgage. The actual term left is 8 years but I am desperate to pay it off when I am 45/46. I have recently started saving £800 a month in the offset arrangement. Would like to leave it available to use for car bills/school bills though if needed. I hope my endowment money (est to be £30K) plus extra payments, plus savings in the offset savings pot will be enough to pay it off in 2017/18.
I have recently been asked if I would like more hours at work so I am thinking about that too...esp as I am the biggest earner.


Good luck!

1robert1

good luck miss moneysaver. sounds like you have a great plan

i am feeling really good at the moment. I have been saving my £2 coins and thought whatever we have left at the end of the year we can pay off of the mortgage. Curiosity got the better of me and the other half and last night we opened it up to see how much was in there as it weighed a tonne and to our surprise we already have £200 in there.........amazing!! it has completely spurred us on to ask for more £2 coins in with our change.

i also have a secret pot which i have been putting money in whenever we have anything spare, i have £140 in that but thinking about using that for Christmas for the children.

in_need_of_direction

Why don't you bank the £200 and transfer it to your mortgage now. It will instantly reduce your interest. Re your secret pot, I'd say children tend to be ok for Christmas. Why not have it as a treat pot for you and the OH? It's something you could use when you hit the point of being a bit fed up looking after the pennies.