mortgage free when 57 !!!

shinner

Hi I am very new to this and if I don't do anything now I will have my mortgage until I am 57 !! I have been overpaying by £50 a month and in July the mortgage should be just under 120000. I think interest is added daily. I need to get OH to start and over pay by the same at present he still needs to get rid of debt. I am still in a little debt but mine is interest free and is on the understanding I pay £200 a month off.
I would love to be able to shave off a few years so we can live a little. Unfortunately we are on a SVR 4.74% and don't stand a chance of getting a better deal as I have 4 defaults.

shinner

At present 22 years left to go.

shinner

Right well overpayment of £50 for July then in August it will be £100 a month think this will be the best way forward.

shinner

Well overpayment is still only 50 a month but is better than nothing received a letter from company to say payment received and noticed my normal payment has been reduced by 59p I suppose that is a start although wish they just left it on. Does this mean I am going to have to keep altering my standing order for my overpayment ?
Really need to think of ways to create more money to decrease my mortgage.

frugalmacdugal

Hi,

hey, good on you doing the over payment, will decrease the repayment years.

Wouldn't bother changing the DD, let it go a few months then increase your over payment as you wish.

Good luck, you're heading in the right direction.

shinner

Well just changed standing order can't afford 100 so went for 75. Hoping this will just come off at not have to contact them. Stopping smoking so figured that is a packet of fags a week. As I was smoking a pack a day that is a little off the total. Rest going towards Xmas.

Thrugelmir

shinner wrote: »

Does this mean I am going to have to keep altering my standing order for my overpayment ?

Easy enough to do via online banking.

Find something which cuts a £1 out of your monthly spend and increase the standing order. Thinking small is often more productive. As interest interest is calculated daily and charged monthly. So the pay off comes at the end of the mortgage term. Prepare for a marathon not a sprint. Let the savings compound.

shinner

Will definitely be a marathon :rotfl: I have so far not really missed the 50 I was paying and feels that I have always found cigarette money so the increase should not hurt as long as I stay off the cigarettes.

gallygirl

Shinner you should be able to write to your mortgage company and ask that all future overpayments are used to reduce the term rather than the monthly payment. Alternatively, as others have suggested, you could just up your standing order every time they drop your payment - a bit of a faff, but a lot of satisfaction in seeing the balance shift between regular payments to overpayments :T.

Thrugelmir

Overpayments allow flexibility. You never know what the future holds.

shinner

Getting very impatient to find what a difference the overpayment will make to balance won't come out until 1st either lol.
I am wanting to see things move.