Diary Mortgage Free Road To Change My Life

Luckyinlife

Watty1 wrote: »

Great overpayments and EF. Know what you mean about not talking about the o/ping. Only one person knew and saw the point, and one person actually told me we were daft to o/p because all debts die with you! I was shocked at that belief. He was so adamant I found myself checking that on the net :rotfl: He really thought we should be spending rather than overpaying :eek:

Thanks watty

Ya the thing is we all have family and even if you die with loads of debt they will make you sell the house pay off the debts depending on what they are
Luckily my only debt is the mortgage. if i couldn't afford to live comfortable and overpay i just wouldn't overpay i think you need to do the things you want to enjoy life and if you can overpay why not ? hopefully we will live many years debt free and be a lot less worried about work/and bills.

Floxxie its the same in my area new builds half the size of the older houses are 40% more and you get 40%less space
i went to see a new build brand new 155k 3 bed it didnt have nowhere near the space of the the 3 bed semi i bought for 88k lol in my area and they keep popping up new sites with the houses averaging 40% more

Luckyinlife

Your right fire
even £50 a month for me would cut my term down by 5years and nearly 5k on my rate of 2.44% which it wouldn't stay on that rate so save me even more really
can buy myself a garage for that much haha

lippy1923

Great to have a little catch up of your diary Lucky. Lovin the progress you are making. Keep it up.

Luckyinlife

Thanks lippy for taking the time to catch up :]

Went to cinema yesterday watch Disney zootropils if you not seen this yet defiantly worth taking a look i loved it DS was right into it lol

Today lamb dinner see mum and watch f1 happy days

I dunno what it is is but the OP/Normal payment seem to come off instantly this month for some reason normally have to wait a day or 2 :]

Firegirl

Zootropolis is brilliant!!!! I didn't even fall asleep in the cinema for this one!!

Luckyinlife

Defiantly fire :] Off to see panda this weekend :]

Strange letter this morning from my bank about the £1007 OP i made today basically confirmed i had 24years and 6 months remaining on the mortgage
and basically confirmed my next payment would be £284 instead of my normal £298 i pay

Iv made over 20 over payment since iv had the mortgage small and big and never had a letter like this

either way weather i keep the normal payments the same or take them payments down i guess i save on the interest can someone just confirm this for me

I plan to overpay most months as and when i can so ill defiantly be paying over what my normal payment is anyway but thought this was random

Firegirl

When I overpay I can either reduce the term of the mortgage or reduce the monthly payments. I always ask to reduce the payment and keep the term the same. The reason being is that if we ever fell on hard times it would give us more flexibility to sort ourselves out. I have my mortgage set up that I pay a fixed amount each month which includes an overpayment so the fact they reduce the monthly payment doesn't really matter.

Does that make sense?

SuperSecretSquirrel

The only time this is a problem is if you have a 10% annual OP allowance and can afford to max it out. If the bank has reduced the standard monthly payment, the extra you pay each month counts as OP and burns through your OP allowance.

Every bank is different, but mine only does this recalculation when OPing £500+ (which is why I always OP £499.99 or less). Maybe just going over the 1k triggered a recalculation for you this time lucky?

Edit: we have essentially done the opposite of firegirl, our OPs reduce the term, not the monthly repayment amount. If roles were reversed and we had a larger mortgage and less offset savings I am certain we would do as fire is now. Basically, there is no one size fits all solution, it depends on personal circumstances

Luckyinlife

Thanks Fire and SSS

Ya i can see what you mean i dont mind having the monthly amount lowered as you say fire if anything happens there is less to to find for that bill

must be the 1k mark was nice to get a letter anyway even tho i can see it online haha so much for paperless bills lol

Firegirl

SSS is right- no one size fits all. I would to not plan, but have contingency for your worst case scenario that you hope to God doesn't happen. These things that happen to everyone else can happen to you or your family and life changes in the blink of an eye. Not to be dramatic but been though a few crackers!!!!!......... Not in a good way so I'm over cautious!

Get yourself in a position that if you earned nothing for a year that you could keep your house. When you get to the end of your term you can pay off early.

OMG- I can feel the negativity ooooooozzzzzzzzing out of me:rotfl: I'll go now before I tip you over the edge!:rotfl: