NOW MORTGAGE FREE! In the big house - here we go again !

Flower1976

Just a quick update!
Start of year 5 of our mortgage and final year of our 5 year fixed rate.
Another 10% payment of £9000 transferred today so balance at the end of the month will be around £32397. £58000 paid off over the last 4 years - we would be rich if we didn't have the mortgage to pay!

Flower1976

We are coming to the end of our 5 year fixed rate and although it does not expire until the end of July, Nationwide have written to let us know we can choose another rate now without incurring an ERC. And we can make another 10% payment as soon as we have switched!

Our balance is now £29500 approx.

So we have decided to switch to the 2 year 1.99% fixed rate which is better than our 3.09% fixed rate that we are currently on and the variable rate of 4.24% that we would be reverting to. We have done an online switch which will start from May and our payments are due to drop from £433 to £147.

We are going to make the 10% over payment of £9000 in May and then make a request to amend the tem of our mortgage to 4 years so that it brings our monthly payments up to approx £444.

Ive calculated that with another £9000 overpayment in May 2020, the balance at the end of the 2 year fixed rate in May 2021 will be around £1700 which we will then repay.

I think this plan will enable us to be mortgage free after 2 year. Let's see how we get on!

Tiggermad

We are also with Nationwide and we reserved our new rate 3 months before our old fixed rate ended. We had a windfall I wanted to pay off the mortgage but it would have taken us over the 10%. So i phoned them and found out when you are in the last month of your fixed rate you can overpay as much as you like without incurring any penalties, then when you switch to your new fixed rate you will still have your full 10% you can overpay.

Worth giving them a call if you wanted to check.

Flower1976

Thanks for reading and commenting. I did speak to Nationwide yesterday and they did tell me that I could pay a lump sum in the July (the month that our fixed rate is due to expire) but the £9000 is just enough for us now. We didn't feel comfortable reducing our savings by much more than that at the moment and feel that with the new rate being so low we won't be incurring too much interest each month. Congratulations on your windfall.

Cariad71

Wow Flower what an achievement! You’ve cleared two thirds of your mortgage in next to no time! We’ve stopped overpaying, but only because we still own our old house which is mortgage free and valued at 200k. Keep ploughing away.... and keep us updated. Well done!

Flower1976

Thank you Cariad. It's good to be able to change overpayment plans whenever we want/need to

Our new fixed rate started yesterday so I have made a payment of £9000 today.
It normally takes a couple of days to show in the account but when it does the balance should be around £20300.

Once it shows we will fill out the form on their website to ask if we can reduce the term to 4 year. They seem to want a lot of information so hope this is something they will agree!

Flower1976

Payments are showing! Online request submitted to reduce term to 4 years.
Should hear from them within 5 days.

Plan is still to make another 9000 overpayment next May and repay the remaining small balance in May 2021!

Flower1976

We have received a letter from Nationwide to confirm we have 3 years 11 months left on the mortgage and it is due to be repaid in a May 2023. Yay!

Monthly payments are now £444 starting June.

Cariad71

How’s it going Flower?😊

Flower1976

Thanks for checking in Cariad. Sorry, I've only just seen this.

All going well. September payment made and the balance at the end of this month should be around £18800.
Plan is to pay another 10% £9000 in May 2020 and then continue with normal monthly payments until our fixed rate expires in May 2021. Balance then should only be around £1200 so will probably clear it then!

Seems to be coming down quite quickly now!