Countdown is On

Firstly I have to say I am not a seasoned saver like some of you and although I've been in awe of this section for a long time I finally got round to actually finding out what sort of mortgage we have (:o) and it seems we can overpay whenever we want:j
So at the moment it stands at £103,000 and today I'm a phone call away from putting in £22,000 to knock it down a bit.

I have a few questions/thoughts you good folk may help me with?

Does it matter what time of the year you make overpayments or is it ok to do it every month?

Also, at the moment I just get a yearly statement, how do you all see your totals or keep track of them?

I'm so grateful to be in this position so need to keep the joy and momentum going. I have no real end date in mind so need to work out how much I should overpay/put away each month? plus I think I need to check out a few other boards in here for my other spending addictions as at the moment we have no other debts and a lot of money coming in but not sure where it's all going if that makes sense.
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Replies

  • edited 22 July 2014 at 11:11AM
    Lois_ELois_E Forumite
    2.2K Posts
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    edited 22 July 2014 at 11:11AM
    Welcome ostaragirl! :wave:

    I'll try to reply to your points one by one:

    Firstly I have to say I am not a seasoned saver like some of you

    Everyone welcome here, however seasoned or otherwise! Well done for making a start.

    and although I've been in awe of this section for a long time I finally got round to actually finding out what sort of mortgage we have (:o) and it seems we can overpay whenever we want:j

    Good. Being able to OP whenever you want will make things much easier for you.
    :)

    So at the moment it stands at £103,000 and today I'm a phone call away from putting in £22,000 to knock it down a bit.

    "A bit"???? £22k is an awesome OP. :T

    Does it matter what time of the year you make overpayments or is it ok to do it every month?

    For most mortgages the interest is calculated daily and added to the account either daily or monthly. However, there are a very few mortgages still around where the interest is calculated annually, or other odd arrangements. You will need to check with your lender. If your interest is calculated daily, then regardless of how often it's added to the account, the best thing to do with any money you have to OP is to do it as soon as you can. Every day you delay is another day being charged more interest than necessary.

    Also, at the moment I just get a yearly statement, how do you all see your totals or keep track of them?

    Some lenders (but not all) allow you to see your mortgage balance online. Check with your lender. Many of us also track our mortgages ourselves with spreadsheets.

    I'm so grateful to be in this position so need to keep the joy and momentum going.

    Keep a diary on here and post frequently. You will find it very encouraging and motivating.

    I have no real end date in mind so need to work out how much I should overpay/put away each month?

    Indeed. There's a balance to be struck. If you spend on other stuff regardless, and hope there might be some left over to OP the mortgage, there may not be much to OP. However, if you send all your money off to your mortgage lender at the beginning of the month leaving nothing for other expenditure, then an unexpected emergency may leave you paying interest on a credit card or OD at a much higher interest rate. The consensus on here is usually that it's best to have an emergency fund (EF) to cover a few months of expenditure before getting going with really serious overpaying.

    plus I think I need to check out a few other boards in here for my other spending addictions

    You'll find lots of help on lots of boards. Be warned, though, that although some boards (Old Style, for example) are as friendly and supportive as us here on MFW, others can be brutal in their criticism (some of the threads on the relationships boards spring to mind). You'll always be sure of friendly encouragement here, though
    . :)

    at the moment we have no other debts and a lot of money coming in but not sure where it's all going if that makes sense.

    If you don't know where the money is going then you need to keep a spending diary for a few months. You can itemise everything, or decide on a range of categories. Similarly you can do it in a notebook or on a spreadsheet or whatever. Choose what you thinkwill work for you.
    Starting again 13/4/19
    Home loan 1: £21,102.50 Home loan 2: £7,698.99
    Total owed: £28,801.49
  • ostaragirlostaragirl Forumite
    277 Posts
    Thank you for a very informative reply. What sticks out is that I need to start some record keeping and to keep a spending diary so I can see where everything is going. Made a start by looking at bank account and writing down all the DD's and our salaries, trouble is OH gets paid monthly and me 4 weekly but I suppose it usually works out as one wage at end of month and one near the middle.
    Tonight I'll transfer the money I'm going to use for the lump sum into current account ready to phone them tommorow.
    I hadn't thought about an emergency fund so thanks for that tip! and about the other threads etc :)
  • ostaragirlostaragirl Forumite
    277 Posts
    Made my lump sum payment yesterday, feels really weird as it was the result of 3 years hard saving. Now it's gone feels strange knowing that money isn't squirreled away any more.....
  • Lois_ELois_E Forumite
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    Ninth Anniversary Combo Breaker
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    ostaragirl wrote: »
    Made my lump sum payment yesterday, feels really weird as it was the result of 3 years hard saving. Now it's gone feels strange knowing that money isn't squirreled away any more.....

    I know. But try working out how much difference it's made to your daily mortgage interest, and see if that cheers you up. :)
    Starting again 13/4/19
    Home loan 1: £21,102.50 Home loan 2: £7,698.99
    Total owed: £28,801.49
  • ostaragirlostaragirl Forumite
    277 Posts
    :jnow that is a thought! will leave it them to do it but can't wait to find out.

    Have decided we are aiming to pay it off to co-incide with OH retiring in 7 years. I will still be working for about another 14 years after that given the age difference so that's a whole other set of financial plans to deal with lol. Would be nice to hear from others in a similar situation to see what plans they have....
  • Well done on the huge overpayment! :j
    2014 OPs £113.28
    Mortgage Balance £116986
  • ostaragirlostaragirl Forumite
    277 Posts
    Thank you it really has been a big achievement. It's weird cause I said to OH last night I'm not sure how I managed to save all that and in a way can't really remember doing it which sounds daft.
    Think I've peaked a bit now though, need a plan!
  • ostaragirlostaragirl Forumite
    277 Posts
    A letter arrived from mortgage company yesterday detailing my OP so total has gone from £103,000 to £81,000 and payments down by £60 a month:j
    I am aiming for knocking another £5000 off by Christmas, not sure if I can but going to give it my best shot.

    Found, counted and bagged £125 to be banked yesterday from all the pots I throw my change into and sold a pair of jeans and a top for £8. This is not really counted as my OP fund but I'm going to keep going with finding ways of making extra bits and just put it aside.

    I feel like framing that letter!:D
  • jodles16jodles16 Forumite
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    Car Insurance Carver!
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    Wows thats an amazing overpayment! Well done!

    5k overpayment sounds like a good amount! I would say its good to have something to aim for and you will find out if its realistic or not as you go on! Good luck!
    MFW2020 #115 250/3000 J-250
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  • ThrugelmirThrugelmir Forumite
    89.5K Posts
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    ostaragirl wrote: »
    A letter arrived from mortgage company yesterday detailing my OP so total has gone from £103,000 to £81,000 and payments down by £60 a month:j

    Use the £60 as an overpayment on the mortgage every month.

    Keep the snowball rolling. :D
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