The "Mortgage-free in 2025-30" club!

Baby_Angel

Last week went and opened a Santander 123 account. Hoping to make the (little) money we have work a bit harder.

Yesterday I realised that with the little overpayments we have done in the past few months we have already reduced the term by 4 months. Originally Oct 2036 now it shows as Jun 2036 :j Just have to keep at it

LoveTheCoast

We're just waiting for the latest P60 so we can do 14/15 tax return and then know quite how much money/savings we have. We should then be able to make our first capital overpayment

lippy1923

Baby_Angel wrote: »

Last week went and opened a Santander 123 account. Hoping to make the (little) money we have work a bit harder.

Yesterday I realised that with the little overpayments we have done in the past few months we have already reduced the term by 4 months. Originally Oct 2036 now it shows as Jun 2036 :j Just have to keep at it

I love seeing my date change on my internet banking. Amazing how much the dates can change with 1 small overpayment

4 months until my wedding and then I can start OP again. Can't wait!!!!!!!!!

pinkteapot

lippy1923 wrote: »

4 months until my wedding and then I can start OP again. Can't wait!!!!!!!!!

Assume that's not the main reason you can't wait for your wedding...

bubblycrazy

lippy1923 wrote: »

I love seeing my date change on my internet banking.

My mortgage is through Natwest and if I go to 'manage your mortgage' I can see an end date but I don't think it has came down?
It says term remaining and has the amount of years and months, but it is the same as my original end date?

pinkteapot

bubblycrazy wrote: »

My mortgage is through Natwest and if I go to 'manage your mortgage' I can see an end date but I don't think it has came down?
It says term remaining and has the amount of years and months, but it is the same as my original end date?

HSBC don't do it either. All we can see is our current mortgage balance (debt outstanding). I have an overpayment spreadsheet that calculated interest saved and reduction in term.

Luckyinlife

Hey guys was wondering what your thoughts on paying fees when overpaying is like

Im already in the mind set that i dont mind paying the fees myself just because it still saves you more than you would ever get in real terms in a bank account just sitting there

in my case i have a 6% rate on the actually mortgage and 3% fee on anything i over pay so if i overpay £1000 have to pay a £30 fee

now im planning a over payment this month even with the fee because it will save me close to a year off the term and £4000 in interest alone and the capital on the normal monthly payment will be more then

i guess its different for everyone but whats your thoughts

pinkteapot

Hmmm, that's more complicated maths than I can do on a Friday morning! My gut feel would be that with the very low interest rates on savings at the moment, you're still better off OPing as you have a 6% interest rate on the mortgage. But I'd suggest asking the question on the savings and investments boards - they're brilliant at working out which option is best.

Alternatively, when does the fee for OPing end? If it's in the next couple of years, it might be worth savings up the OP money instead, then paying it off as a big lump sum once you're allowed to make unlimited OPs....

Luckyinlife

pinkteapot wrote: »

Hmmm, that's more complicated maths than I can do on a Friday morning! My gut feel would be that with the very low interest rates on savings at the moment, you're still better off OPing as you have a 6% interest rate on the mortgage. But I'd suggest asking the question on the savings and investments boards - they're brilliant at working out which option is best.

Alternatively, when does the fee for OPing end? If it's in the next couple of years, it might be worth savings up the OP money instead, then paying it off as a big lump sum once you're allowed to make unlimited OPs....

Thanks tea pot iv only just taken out the mortgage so 2 years now and even then its goes onto a SVR of 5.2% which i can then change packages at this stage to try to achieve better rate.

thing is over the next 2 years ill be paying £10944 in standard mortgage payments of which a whopping 8k or so will be interest and only 2-3k will be coming off the capital

so if i pay say £1000 and pay the £30 charge that 8k interest will be lower over the 2 years as it will pay of more on a monthly bases from the capital :]

turtlemoose

sounds like a no brainer to me on the OP lucky.